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Peabody Sage Creek Mining, LLC <br />Page 4 <br />12/14/2015 <br />sites except SSSPG6 has manganese values less than I <br />mg/1. Dissolved manganese levels at site SSSPG6 were <br />reported at 11.1 mg/l on June 19, 2014. PSCM will need <br />to continue to monitor SSSPG6 manganese levels. Based <br />on the currently approved CDPES permit contained in <br />Exhibit 2.05.3-E3, PSCM is not required to monitor <br />manganese levels at outfall 002 on Little Grassy Creek <br />downstream of SSSPG6. According to PSCM, site SSG1 <br />upstream of the mine and Seneca II discharges often <br />experiences discharges that exceed the .2mg/l manganese <br />standard. <br />9. Instream Numeric <br />CWQCC regulation <br />-Fish Creek: <br />Standards <br />33.0 <br />Two PSCM monitoring sites exist within the Fish Creek <br />Drainage: The 004 outfall and SSC 10 are on Cow Camp <br />Creek and discharge into Fish Creek which is on <br />Segment 13b of the Yampa River basin. The stream <br />standards for Fish Creek are based on aquatic life <br />standards. Two samples from the Pond 004 outfall <br />exceeded the chronic selenium standard of 4.6 ug/1, in <br />April and May (9.1 and 7.6 ug/1). The acute standard of <br />18.4 ug/l was not exceeded. The total recoverable iron <br />standard (1.0 mg/1) was exceeded once in January from <br />Pond 004. According to PSCM, this was likely due to <br />minor debris in the discharge pipe. PSCM indicated they <br />removed the vegetation and the total recoverable iron <br />values at this site in the following two months of <br />sampling was well under the effluent limit. For site <br />SSC 10, no flow was recorded on October 2, 2013 and the <br />flow was too dispersed to be calculated in June of 2014. <br />-Little Grassy Creek: <br />Two PSCM monitoring sites exist within the Little <br />Grassy Creek drainage: The 002 outfall and SSLG5. <br />SSLG5 drains the upper portion of Little Grassy Creek <br />which are undisturbed by mining. Both sites discharge <br />into Grassy Creek which is on Segment 13e of the <br />Yampa River basin. The stream standard for Total <br />Recoverable Iron (1.0 mg/1) was exceeded at the SSLG5 <br />site (7.05 mg/1) and the Total Mercury standard (0.0100 <br />mg/1) was exceeded at SSLG5 (0.200 mg/1). The <br />