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August 21, 2014 C- 2009 - 087 /Peabody Sage Creek Mine JRS <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 R - Roads <br />N - Availability of Records N - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife R - Support Facilities On -site <br />R - Hydrologic Balance R - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste N - Topsoil <br />COMMENTS <br />This was partial inspection of the Sage Creek Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. No representative of Sage Creek Mining, LLC accompanied me on the <br />inspection. The mine is not currently operating and the portals have been temporarily sealed. The weather was <br />warm and partly cloudy and the ground was dry. <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 />- Pond 002 was full at the time of the inspection and was discharging. The discharge appeared to be clear. There <br />was water flowing into the pond from the roadside ditches. The pond embankment was well vegetated and stable <br />and no erosional problems were noted. <br />- The lower sump was full and discharging at the time of the inspection. The discharge appeared to be clear. <br />There was no vegetation on the sump embankment. The operator will need to seed the area around the sump to <br />help control erosion. Although there was no vegetation on the sump embankment, there were currently no <br />erosional problems noted. <br />- The main sump at the portal area contained water approximately three feet below the discharge point and was not <br />discharging at the time of the inspection. There was no vegetation on the sump inslopes and, given the location of <br />the sump and rock and soils, vegetation may not be possible. The sump was stable and no erosional problems <br />were noted. <br />- The smaller sump along Road F at the portal area was full and discharging at the time of the inspection. The <br />discharge appeared to be clear but this is not an NPDES outfall. There was water flowing into the sump from the <br />ditch. This water was coming from the drain pipe that drains the area above the portal. <br />GENERAL MINE PLAN COMPLIANCE: <br />- The Sage Creek Mine is not operating at this time. The portals have been temporarily sealed and the fan has <br />been capped. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 8 <br />