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October 16, 2014 C- 2009 - 087 /Peabody Sage Creek Mine JDM <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />Y - Air Resource Protection <br />Y -Roads <br />R - Availability of Records <br />R - Reclamation Success <br />NA - Backfill & Grading <br />Y - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />NA - Explosives <br />NA - Slides and Other Damage <br />Y - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />R -Signs and Markers <br />Y - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />NA - Other <br />NA - Special Categories Of Mining <br />NA - Processing Waste <br />N -Topsoil <br />COMMENTS <br />This was a complete coal inspection conducted by Jason Musick of the Colorado Division of Reclamation, <br />Mining, and Safety. Scott Cowman of Peabody Energy accompanied the inspection. The weather was clear and <br />the site was dry. No mining activities are occuring as the site remains idle. Permit Revision No. I and Bond <br />Release No. 3 are currently under review by the Division. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All records were on file at the Peabody Sage Creek Mine offices. See attached Availability of Records. <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 />The Pecoco Pond, Upper Sump, Lower Sump, Truck Settling Pond, Portal Sump 91, Portal Sump 92, Pond 004, <br />Pond 003 and Pond 002 were observed during the inspection. Pond 002, which receives discharge from Pecoco <br />Pond, and the upper and lower sumps, was discharging at the time of the inspection. Scott Cowman of Peabody <br />Energy stated that the Pond 002 flume is scheduled to be re- leveled. <br />The upper sump and the lower sump were discharging at the time of the inspection. The upper sump was stable at <br />the time of the inspection. Saturated ground surface continues to be observed on the west side of the discharge <br />drainage near the toe of the embankment. No instability has been observed and none was observed during this <br />inspection. The lower sump was stable with light vegetation growth observed on the crest of the embankment. <br />Heavy thistle and houndstounge was observed on the outslope of the embankment. <br />A trickle discharge was observed at Pond 003. All embankments were stable with no problems noted, with the <br />exception of the following: <br />- noxious and invasive vegetation was observed along the embankments of the Pecoco Pond near the inlet and <br />outlet of the primary spillway, within the emergency spillway of the Upper Sump and the Lower Sump, and near <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 7 <br />