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September 23, 2014 X- 2012 - 231 - 03/2012 Exploration Project JDM <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />N <br />- Air Resource Protection <br />N - Roads <br />N <br />- Backfill & Grading <br />R - Reclamation Success <br />N <br />- Fish & Wildlife <br />N - Revegetation <br />N <br />- Hydrologic Balance <br />N - Slides and Other Damage <br />N <br />- Gen. Compliance With Mine Plan <br />N - Signs and Markers <br />N <br />- Other <br />N - Topsoil <br />COMMENTS <br />This was a coal exploration bond release inspection conducted by Jason Musick of the Division of Reclamation, <br />Mining, and Safety (Division). A request for fulll bond release was received by the Division on 19 September <br />2014. This full bond release inspection included the inspection of 3 sites which have been drilled, abondoned, and <br />reclaimed. Scott Cowman of Peabody Sage Creek Mining, LLC accompanied the on the ground inspection. The <br />weather was clear and dry during the on the ground inspection of the site. <br />RECLAMATION SUCCESS - Rule 2.02(g) and 4212(2): <br />All sites inspected displayed adequate vegetation with little to no noxious or invasive vegetation observed. No <br />evidence of instability or erosion was observed during the on the ground inspection of the sites. All holes were <br />sealed and covered with topsoil. Holes were marked with aluminum caps and t -posts displaying the hole number. <br />No issues were identified and all disturbances were adequately reclaimed. Erosion control waddles were in place at <br />sites CCU065 and CCU078. Waddles were removed during the inspection at Site CCU078. In an email to the <br />Division received on 24 September 2014 photographs were sent noting the removal of waddles at the CCU65 <br />location as requested by the Division. Examples of reclaimed sites are identified in the photos below. <br />Based on this inspection, SL -1 can be approved for the disturbances associated with the three sites approved under <br />X- 2012 - 231 -03. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 6 <br />