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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />September 30, 2014 <br />Katryna Snowden <br />Peabody Energy <br />PO Box 670 <br />Hayden, CO 81639 <br />RE: Peabody Sage Creek Mining, LLC <br />Peabody Sage Creek Mine, C-2009-087 <br />Third Quarter 2014 Impoundment Inspection Report Review <br />Dear Ms. Snowden: <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 third quarter sediment pond inspection reports were received by the Division via email on 30 <br />September2014. Impoundment inspections were conducted on August 4th, August 6th, and September 8th <br />of the quarter. <br />Impoundments Pecoco, 003, 002, 004, Upper Sump, Lower Sump, and Portal Sump #1 were dischargeing <br />athe the time of the inspection. <br />It is noted that the inspection report for the Upper Sump impoundment identifies "seepage from the <br />downstream foundation area ", with a note "see below." No further information is included with the <br />inspection. Please describe the type and extent of the seepage observed in order to make a <br />determination as to the stability of the downstream foundation area. <br />If you have any questions feel free to contact me. (303) 866 -3567 ext 8134 <br />Sincerely, <br />o� cO�a <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director I <br />1876 <br />