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November 10, 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 />N - Explosives N - 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 />R - Other N - Special Categories Of Mining <br />N - Processing Waste 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 of the Colorado Division of Reclamation, Mining and <br />Safety conducted the inspection. Mr. Scott Cowman with PSCM accompanied me during the inspection. The <br />weather was sunny and cool during the inspection. <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 />The upper sump was holding water and was discharging. The embankment was stable and snow covered. The <br />primary and emergency spillway was clear and functional. <br />The PECOCO pond was holding water and was discharging. The embankment was stable and the primary <br />spillway was clear and functional. <br />The lower sump was holding water and was discharging. The embankment was stable and snow covered. The <br />primary and emergency spillway was clear and functional. <br />Pond 2 was discharging. <br />Pond 3 was holding water and was discharging. The embankment was stable and snow covered. The primary and <br />emergency spillway was clear and functional. <br />GENERAL MINE PLAN COMPLIANCE: <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4 <br />