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February 24, 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 />R - 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. Scott Cowman of <br />Peabody Energy accompanied the inspection. In addition to the on- the - ground inspection of the site an aerial <br />inspection flown by Harry Ranney of the Colorado Division of Reclamation, Mining and Safety (Division) on the <br />same day. Oblique aerial photographs were taken on February 24, 2014 and reviewed in the Denver office by <br />Jason Musick of the Division on February 27, 2014. The weather was clear and the site conditions reflected the <br />on- the - ground conditions of the inspection. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The PECOCO Pond, Upper Sump, Lower Sump, Portal Area Sumps, Pond 003 and Pond 002 were observed <br />during the inspection. Pond 002, which receives discharge from Pecoco Pond and the upper and lower sumps, was <br />frozen and snow covered at the time of the inspection. The Pond 002 flow measurement reader was not working <br />at the time of the inspection. A temporary flume was put in place above the existing flume to measure flow. It <br />should be noted that this flume will not be adequate to handle heavy flows and should be used only until the flow <br />measurement can be repaired. <br />Pond 003 was frozen and snow covered. Mine water was not being discharged into the Portal 41 Sump and was <br />being pumped to Pond 002 from the mine dewatering borehole. The Upper Sump was frozen and discharging. <br />The Lower Sump riser pipe appeared to be leaning to one side; it was unknown during the inspection if the pipe <br />was damaged due to ice. All embankments were snow covered and stable with no problems noted. <br />GENERAL MINE PLAN COMPLIANCE: <br />The portal dewatering well installation has been completed as permitted under MR23. Pumping form the portal <br />dewatering well to Ditch FA -D4 was ongoing with no problems noted. No other permitting activities are ongoing <br />at the site as activities are idle. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 7 <br />