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February 10, 2016 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 R - 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 />NA - 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 (Division) conducted the inspection. Mr. Brian Watterson accompanied me during the inspection. The <br />weather was clear at the time of the inspection, however the mine and the surrounding area has had a significant <br />amount of snow fall and many of the mine features were inaccessible and visibility was limited. <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 />Ponds 003, 002, Lower Sump, and Upper Sump were observed. These ponds were holding water and ice covered. <br />The embankments of Ponds 003, Lower Sump and Upper Sump was snow covered but appeared stable. Pond 004 <br />was inaccessible at the time of the inspection. <br />GENERAL MINE PLAN COMPLIANCE: <br />The mine is currently idle. The two piles of coal stored at the site, one on the lower coal storage area and the other <br />on the upper coal storage area was observed. It does not appear these piles have been disturbed since the last <br />inspection. The portal area was observed. The portals are closed and it does not appear any activity is occurring <br />at the site other than snow removal. The portal excavation was snow covered but appeared stable. <br />OTHER (SPECIFY): <br />The following maintenance items were noted during previous Division inspections. Below is an update on their <br />progress. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 5 <br />