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May 26, 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 N - Roads <br />N - Availability of Records N - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />R - Explosives R - Slides and Other Damage <br />N - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance N - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste R - Topsoil <br />COMMENTS <br />This was an aerial inspection of the Peabody Sage Creek Mine; C-2009-087, operated by Peabody Sage Creek <br />Mining, LLC. (PSCM). Mr. Harry Ranney with the Colorado Division of Reclamation Mining and Safety <br />(Division) took the photographs on May 26, 2015. I, Jared Ebert with the Division reviewed the photographs on <br />June 9, 2015 and wrote this inspection report. <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 3, Pond 2, Lower Sump, Upper Sump, Portal Sumps, and the POCOCO ponds were observed. Each of these <br />ponds was holding water and appeared stable. <br />Drainages FA -D5 and FA -D6 above the portal area are visible in the photographs. These drainages appear <br />functional. <br />GENERAL MINE PLAN COMPLIANCE: <br />The mine is currently idle. Remnants of initial development mining is observed. Coal is stored near the radial <br />stacker and the southeast coal/material storage area. <br />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 10 <br />