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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />November 4, 2013 <br />Mr. B. Scott Cowman <br />P.O. Box 250 <br />36600 Routt Countv Road 27 <br />Havden, CO 81639 <br />RE: Peabody Sage Creek Mining, LLC, Peabody Sage Creek Mine <br />Third Quarter 2013 Impoundment Inspection Report <br />Permit C- 2009 -087 <br />Dear Mr. Cowman: <br />COLORADO <br />ID IV I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining, and Safety ( CDRMS) have found the above referenced <br />reports to be in compliance with the following CDRMS regulation: <br />4.05.9(17) — Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) — A copy of the report shall be submitted to the Division on a quarterly basis. <br />The third quarter sediment pond inspection reports were received via email by the Division on 30 <br />October 2013. Sediment pond inspections were conducted on September 3rd, 2013. <br />Pond 002, Pond 003, Pecoco Pond, Upper Sump, and Pond 004 were discharging at the time of the <br />inspection. <br />It is noted that the the third quarter report continues to identify a seep at the toe west of the culvert and <br />east of the culvert of the Upper Sump. As mentioned in previous Division inspection reports the origin <br />of the water in this area should be investigated and determined if the integrity of the embankment has a <br />potential to be compromised. <br />If you have any questions feel free to contact me. (303) 866 -3567 ex 8134 <br />Sincerely, <br />Jason Musick <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />