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November 24, 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 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 />The Colorado Division of Reclamation, Mining and Safety (Division) conducted an aerial inspection on November <br />24, 2015 of the Peabody Sage Creek Mine; DRMS Permit No. C-2009-087, operated by Peabody Sage Creek <br />Mining, LLC. Mr. Harry Ranney with the Division took the aerial photographs and I, Jared Ebert with the <br />Division reviewed the pictures and prepared this report. <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 PECOCO pond, Upper Sump, Lower Sump and Pond 2 were holding water. The embankments appeared <br />stable. <br />GENERAL MINE PLAN COMPLIANCE: <br />The mine is currently idle. Based on the photographs taken, it does not appear any mining activity is occurring <br />other that routine site maintenance. <br />SLIDES and DAMAGE - Rule 4.12: <br />The slope above the portals appears stable. <br />SUPPORT FACILITIES - Rule 4.04: <br />The explosives storage area, material/coal storage areas, substations, utility compressor building, old shop area, <br />office and old bone yard area were observed and no problems were noted. <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 9 <br />