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August 11, 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 />R - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />Y - Revegetation <br />R - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On-site <br />Y - 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 partly cloudy. <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 />One item was noted that will need to be addressed: <br />PSCM has an APEN permit (IORO I 175F), issued on September 4, 2012. Six AIRS points are approved <br />with this permit (001 to 006). According to page 7 of the permit on file at the mine office, Points 001 <br />through 005 expired on February 8, 2015. However, the permit also states that the permit is valid for a <br />term of five years. PSCM will need to contact the Colorado Department of Public Health and <br />Environment, Air Pollution Control Division and determine if they need to modify/update their APEN <br />permit for Points 001 through 005. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); <br />Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />No new areas have been backfilled and graded. <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 />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 10 <br />