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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 />April 1, 2014 <br />Mr. B. Scott Co« -man <br />P.O. Box 250 <br />36600 Routt County Road 27 <br />Havden, CO 81639 <br />RE: Peabody Sage Creek Mining, LLC, Peabody Sage Creek Mine <br />First Quarter 2014 Impoundment Inspection Report <br />Permit C- 2009 -087 <br />Dear Mr. Cowman: <br />COLORADO <br />D I v IS I O N OF <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 first quarter sediment pond inspection reports were received by the Division on 1 April 2014. <br />Sediment pond inspections were conducted on March 20th 21St, and 24th 2014. <br />Pond 002, Pond 003, Pecoco Pond, Upper Sump, Lower Sump and Pond 004 were discharging at the <br />time of the inspection. <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 />