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May 14, 2014 C- 2009 - 087 /Peabody Sage Creek Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />• -Air Resource Protection <br />• -Availability of Records <br />NA - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />N -Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA -Other <br />NA - Processing Waste <br />R -Roads <br />R - Reclamation Success <br />Y - Revegetation <br />NA - Subsidence <br />NA - Slides and Other Damage <br />R - Support Facilities On -site <br />N -Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Sage Creek Mine conducted on May 14, 2014 by Mike Boulay of the Division <br />of Reclamation, Mining and Safety Grand Junction Field Office. Scott Cowman of Peabody Energy was present <br />during the entire inspection. Weather conditions were sunny and cool. Ground conditions were damp due to a <br />recent storm that passed through the area two days prior to the inspection. There was no activity at the site at the <br />time of the inspection. <br />FISH and WILDLIFE — Rule 4.18: <br />A small flock of what appeared to be Wilson's Phalarope approximately twenty birds were seen on Pond 003. <br />These are aquatic shorebirds that are relatively tame and like salty ponds and marshes. The females were in their <br />breeding plumage (see attached photograph at the end of this inspection report). <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 />Site sedimentation Pond 002, 003, 004, and the Pecoco Pond were inspected. All of these ponds were full and <br />discharging clear water. Pond embankments were stable and well vegetated. Pond inlets and discharge structures <br />at all of these pond locations were in good condition and no problems were noted. Sediment and runoff control <br />appeared adequate site wide. There were no areas of concern or significant erosion identified during this <br />inspection. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />