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April 7, 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 />N - Air Resource Protection <br />N - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />R - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />R - Explosives <br />R - Slides and Other Damage <br />N - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />N - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />R - Topsoil <br />COMMENTS <br />This was a partial 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 with the Colorado Division of Reclamation, Mining <br />and Safety (Division) conducted the inspection. Mrs. Katryna Snowden with PSCM accompanied me during the <br />inspection. The weather was sunny and windy at the time of the inspection. <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. This area was stable and no problems were noted. <br />HYDROLOGIC BALANCE - Rule 4.05; Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The spoil springs above pond 4 were flowing. <br />Pond 4, Pococo Pond, Upper Sump, Lower Sump, Pond 2 and Pond 3 was observed. Each of these ponds was <br />discharging. The embankment of each of the ponds was stable and vegetated. The primary spillway of each of <br />the ponds appeared to be clear and functional. The two portal sumps were both holding water. The rodent holes <br />observed during the last inspection on the embankment to Pond 3 have been repaired. <br />Channels CH -1 and FA -D4 was walked and appeared stable and functional. The mine dewatering system was <br />discharging water into channel FA -D4. <br />Previously noted maintenance items: <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />