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March 20, 2015 C- 2009 - 087 /Peabody Sage Creek Mine JLE <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 - Availability of Records <br />NA - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />R -Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />NA -Other <br />NA - Processing Waste <br />Y - Roads <br />R - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />R - Slides and Other Damage <br />Y - Support Facilities On -site <br />R - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the Peabody Sage Creek Mine; DRMS Permit No. C- 2009 -087 operated by <br />Peabody Sage Creek Mining, LLC (PSCM). I, Jared Ebert of the Colorado Division of Reclamation, Mining and <br />Safety (Division) conducted the inspection. Mr. Scott Cowman with PSCM accompanied me during the <br />inspection. The weather was clear and sunny. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The records were checked at the mine office; see the end of the report for details. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />The explosives storage area was observed and no problems were noted. <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 />Pond 003, Pond 002, Lower Sump, Upper Sump, Portal Sumps and the POCOCO Pond were observed. The pond <br />embankments appeared stable and the spillways appeared clear and functional. Pond 004 was inaccessible due to <br />the snow conditions. Ponds 002, 003, POCOCO Pond, Upper Sump and Lower Sump were discharging. <br />Drainage ditches FA -D5 and FA -D6 were observed from the Road A -1. These ditches have been lined with a V- <br />shaped synthetic material and appear clear and functional. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 7 <br />