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January 14, 2015 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 />R - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />NA - Backfill & Grading <br />N - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />Y -Explosives <br />NA - Slides and Other Damage <br />N - Fish & Wildlife <br />Y - Support Facilities On -site <br />R - Hydrologic Balance <br />Y - 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 partial coal inspection conducted by Jason Musick of CDRMS. The weather was cloudy and the site <br />was snow - covered during the inspection. Scott Cowman of Peabody Energy accompanied the inspection. No <br />mining activities are occuring as the site remains idle. Technical Revision No. 8 and Bond Release No. 3 are <br />currently under review by the Division. <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 Upper Sump, Lower Sump, Pond 003 and Pond 002 were observed during the inspection. Pond 002, which <br />receives discharge from Pecoco Pond and the upper and lower sumps, was frozen, snow - covered and discharging <br />at the time of the inspection. The Pond 002 flume was functioning properly at the time of the inspection. Pond <br />003 was frozen and snow - covered. The Pecoco Pond was frozen and discharging into the Upper Sump which was <br />frozen and discharging. All embankments were snow covered and stable with no problems noted. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4 <br />