Caballo Creek runs through the Belle Ayr mine permit area and is home to dozens of water bird and fish species.

Foundation Coal West, which began restoring the creek in 1976, said it was elated with receiving the award - awarded to just one coal mine in America by the Office of Surface Mining.

Foundation Coal West president Steve Rennell said: "We are honoured to receive this award. The reclamation of Caballo Creek represents one of the myriad projects undertaken during 30 years of hard work and reinforces Foundation's mission to protect and revitalise the natural environment to the benefit of many, for generations to come."

The major award winner for the night was Peabody Energy, leaving with five of 10 major awards handed out for sustainability and stewardship.

Peabody received Silver and Bronze Good Neighbor Awards - which are among US Interior's highest honors for sustainable practices - and three National Excellence in Surface Mining and Reclamation Awards for environmental stewardship.

"Peabody's leadership in sustainable practices is core to our mission," said Peabody Energy President and Chief Executive Officer Gregory H. Boyce.

"We have an innovative team of engineers, scientists and reclamation specialists who are constantly recognized for achieving the highest and most enduring benefits from our mining and reclaiming activities."