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October 19, 2015 C-2009-087/Peabody Sage Creek Mine JLE <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 004 was holding water and discharging. The embankment was stable and vegetated. The primary and <br />emergency spillway was clear and functional. <br />PSCM has sealed and abandoned the former USGS wells near Pond 004 and have removed the gaging station near <br />the spring above the pond. <br />• Please submit abandonment reports for these wells in accordance with Rule 4.07.3(3). <br />The PECOCO pond is holding water and discharging. The embankment was stable and vegetated. <br />The upper sump was holding water. The spillway was clear and functional and the embankment was stable. <br />The lower sump was holding water. A small amount of water was discharging from the primary spillway. The <br />embankment was stable. <br />The repairs made to the shop diversion ditch remain stable. The top of the diversion has been seeded according to <br />Mr. Cowman. <br />Figure 1. Shop diversion ditch. <br />Pond 002 was discharging. <br />Pond 003 was discharging. The embankment is stable and the primary and emergency spillways appear clear and <br />functional. <br />GENERAL MINE PLAN COMPLIANCE: <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 3 of 7 <br />