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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 17, 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 />4Q 2015 Sediment Pond Inspection Report 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(17). The report included inspection report forms for <br />Pond 002, Pond 003, Pond 004, Pecoco Reservoir, Spill Control Pond #2, Truck Wash Settling Pond, <br />Lower Sump, Upper Sump, Portal Sump #1 and Portal Sump 92. <br />It was reported that the ponds were inspected on November 2, 2015. No appearances of structural <br />weaknesses or hazardous conditions were reported. Several items were noted that will need to be <br />monitored. For the Upper Sump, it was reported that seepage was observed from the downstream <br />foundation area. However, no other details were provided. This issue was reported on the second quarter <br />pond inspection report. Please continue to monitor this issue. Also, the report indicated that water was <br />impounded against the toe of Pond 004. This item should be monitored. In accordance with Rule <br />4.05.9(17) please retain a copy of the reports at or near the mine site. <br />If you have any questions feel free to contact me at (303) 866-3567, extension 8120. <br />Sincerely, <br />Jared Ebert <br />Environmental Protection Specialist <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 I Mike King, Executive Director I Virginia Brannon, Director <br />