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August 21, 2014 C- 2009 - 087 /Peabody Sage Creek Mine JRS <br />ROADS — Rule 4.03: Construction 4.03.1(3)/4.03.2(3); Drainage 4.03.1(4)/4.03.2(4); Surfacing and Maintenance <br />4.03.1(5) and (6)/4.03.2(5) and (6); Reclamation 4.03.1(7)/4.03.2(7): <br />- The main entrance road, Road B, was well maintained and stable. There were no ruts or erosional problems <br />noted on the road at the time of the inspection. <br />- There was extensive rilling on the road spur to the portal area, Road F. The rilling was on the north side of the <br />conveyor. The operator will need to blade this road to repair the rilling problem and, if necessary, provide a plan <br />to rework the drainage control at the area to prevent further problems. There was also rilling on the north side of <br />the road on the slope above the ditch that will need to be repaired. This work should be done this summer /early <br />fall so the road is ready for winter and runoff season. <br />- The road to the new shop area, Road D, was well maintained and stable. There were no ruts or erosional <br />problems noted on this road at the time of the inspection. <br />SUPPORT FACILITIES - Rule 4.04: <br />- There was extensive rilling on the cut slope just east of the portals. Without changing the surface runoff above <br />the portal area this rilling will only get worse and could lead to stability problems. The operator should review the <br />surface water runoff plan and change it to control this runoff. At that point, they should attempt to repair the <br />rilling that is there. As a side note, all of the runoff is captured in the main sump. <br />- There were large patches of Canadian thistle at the portal area. The majority of the plants have already gone to <br />seed and the seeds were blowing around the site. The operator needs to get around the site this fall and do more <br />weed spraying. Since the majority of the thistle have goon to seed, it will be especially important to get out next <br />spring and conduct weed spraying. <br />- The upper shop pad was stable at the time of the inspection. There were no erosional problems noted on the pad. <br />There were several patches of Canadian thistle on and around the pad that have gone to seed. As with the portal <br />area, the operator will need to spray these areas and be on top of the weeds next spring. <br />SIGNS AND MARKERS — Rule 4.02: <br />- The mine ID sign was in place at the entrance to the site. The sign contained all of the required information. <br />- There were "stream buffer zone" signs in place along Little Grassy Creek, as required. <br />DOCUMENTS RECEIVED: None <br />This concludes the 21 August 2014 partial inspection report for the Sage Creek Mine. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 3 of 8 <br />