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COLORADO <br />Division of Reclamation, <br />Mining( and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />December 15, 2015 <br />Scott Cowman <br />Peabody Energy <br />P.O. Box 670 <br />Hayden, CO 81639 <br />RE: Peabody Sage Creek Mine (PSCM); C-2009-087 <br />3Q 2015 Sediment Pond Inspection Report and Annual Certification Review <br />Dear Mr. Cowman: <br />The Colorado Division of Reclamation, Mining, and Safety (Division) has reviewed the above reference <br />report submitted in accordance with Rule 4.05.9(14), (15) and (17). The report included inspection <br />report forms for Pond 002, Pond 003, Pond 004, Pecoco Pond, Spill Control Pond 42, Truck Wash <br />Settling Pond, Lower Sump, Upper Sump, Portal Sump #1, Portal Sump #2, Stock Pond SST3-P, Stock <br />Pond SST4-P, Stock Pond SST8-P, Stock Pond SST16, Stock Pond SST17, Stock Pond SST20, Stock <br />Pond SST26, Stock Pond SST28, Stock Pond SST29, Stock Pond SST31, Stock Pond SST32 and Stock <br />Pond SST33. The submitted report was certified by Michael A. Berdine, a Colorado Licensed <br />Professional Engineer. <br />The inspection report forms address the information required from Rule 4.05.9(15). The report indicates <br />the impoundments were inspected on September 22, 2015. The Division received the report via e-mail on <br />October 6, 2015. Overall, the report forms for each impoundment or pond indicates the impoundments <br />are maintained in accordance with their approved plans. Several maintenance items were discussed: <br />• PSCM continues to monitor the seep near the outlet pipe of the Upper Sump. The report indicates <br />that the seep is not likely associated with the pond. <br />• It was noted that there is a leak in the riser pipe of the Lower Sump; PSCM is considering options <br />for repairing the pipe. <br />This report fulfills the requirement of Rule 4.05.9(14) that all impoundments be inspected annual by a <br />qualified registered professional engineer or other qualified professional specialist under the direction of a <br />professional engineer. The report also satisfies the requirement that each impoundment be inspected <br />quarterly for appearances of structural weaknesses or other hazardous conditions. <br />Please retain a copy of this report at the mine office. <br />If you have any questions feel free to contact me at (303) 866-3567, extension 8120. <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickentooper, Governor Mike King, Executive Director Virginia Brannon, Director lg76- <br />