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January 14, 2014 C- 2009 - 087 /Peabody Sage Creek Mine JDM <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R -Roads <br />N - Availability of Records <br />N - Reclamation Success <br />NA - Backfill & Grading <br />N - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />Y -Explosives <br />NA - Slides and Other Damage <br />N - Fish & Wildlife <br />Y - Support Facilities On -site <br />R - Hydrologic Balance <br />Y -Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />NA - Other <br />NA - Special Categories Of Mining <br />NA - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a partial coal inspection conducted by Jason Musick of CDRMS. The weather was clear and the site was <br />snow - covered during the inspection. No mining activities are occuring as the site remains idle. Permitted <br />construction activities permitted under MR23 were on -going as permitted during the inspection. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4, Effluent Limits 4.05.2, Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The Upper Sump, Lower Sump, Portal Area Sumps, Pond 003 and Pond 002 were observed during the inspection. <br />Pond 002, which receives discharge from Pecoco Pond and the upper and lower sumps, was frozen and snow <br />covered at the time of the inspection. Pond 003 was frozen and snow covered. Mine water was not being <br />discharged into the Portal 41 Sump and pumped to Pond 002. The Upper Sump was frozen and discharging. The <br />Lower Sump riser pipe appeared to be leaning to one side, it was unknown during the inspection if the pipe was <br />damaged due to ice, no discharge was observed from the Lower Sump. All embankments were snow covered and <br />stable with no problems noted. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4 <br />