FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * JAMES WILLIAM E   2. Issuer Name and Ticker or Trading Symbol PEABODY ENERGY CORP [BTU] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) C/O ROCKPORT CAPITAL PARTNERS, LLC, 160 FEDERAL STREET, 18TH FLOOR 3. Date of Earliest Transaction (Month/Day/Year) 11/19/2007 (Street) BOSTON, MA 02110-1776 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock (1) 11/19/2007   M   28,082 A $ 3.3001 29,943 D   Common Stock 11/19/2007   S   246 D $ 50.13 29,697 D   Common Stock 11/19/2007   S   400 D $ 50.14 29,297 D   Common Stock 11/19/2007   S   400 D $ 50.15 28,897 D   Common Stock 11/19/2007   S   600 D $ 50.17 28,297 D   Common Stock 11/19/2007   S   1,500 D $ 50.18 26,797 D   Common Stock 11/19/2007   S   1,700 D $ 50.19 25,097 D   Common Stock 11/19/2007   S   2,800 D $ 50.2 22,297 D   Common Stock 11/19/2007   S   1,700 D $ 50.21 20,597 D   Common Stock 11/19/2007   S   1,700 D $ 50.22 18,897 D   Common Stock 11/19/2007   S   400 D $ 50.23 18,497 D   Common Stock 11/19/2007   S   200 D $ 50.24 18,297 D   Common Stock 11/19/2007   S   100 D $ 50.27 18,197 D   Common Stock 11/19/2007   S   500 D $ 50.28 17,697 D   Common Stock 11/19/2007   S   500 D $ 50.29 17,197 D   Common Stock 11/19/2007   S   800 D $ 50.3 16,397 D   Common Stock 11/19/2007   S   154 D $ 50.31 16,243 D   Common Stock 11/19/2007   S   300 D $ 50.33 15,943 D   Common Stock 11/19/2007   S   14,082 D $ 51.5 1,861 D   Common Stock               7,520 I By Trust

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Option (right to buy) (1)

$ 3.3001

11/19/2007

M

28,082

11/19/2007

05/19/2008

Common Stock

28,082

(2)

175,000 (3)

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
JAMES WILLIAM E C/O ROCKPORT CAPITAL PARTNERS, LLC 160 FEDERAL STREET, 18TH FLOOR BOSTON, MA 02110-1776	X

Signatures

William E. James By: Bryan L. Sutter, Attorney-in-Fact		11/20/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	On October 31, 2007, Peabody Energy Corporation distributed, as a pro rata stock dividend, all of the shares of its wholly-owned subsidiary, Patriot Coal Corporation, to holders of record of Peabody Energy common stock as of the close of business on October 22, 2007 (the "spin-off"). Effective upon completion of the spin-off, the Compensation Committee of the board of directors of Peabody Energy adjusted outstanding equity awards under existing stock plans, including outstanding stock options, to preserve the pre-spin-off intrinsic value of such awards. Accordingly, the number of shares of common stock underlying each option was increased by multiplying the number prior to the spin-off by 1.082524 and the exercise price was decreased by multiplying the exercise price prior to the spin-off by 0.923767.
(2)	Not applicable.
(3)	Does not include an additional 31,745 options with different expiration dates and exercise prices.

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