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EXHIBIT B <br />WASTEWATER PENALTY COMPUTATION WORKSHEET <br />Entity Name: Peabody Sage Creek Mining, Permit Number: C00048275 <br />LLC <br />Beneficial Use Classification: Outfall 002 Date of NOV/CDO: September 12, 2012 <br />and 003 to Little Grassy COUCYA13e: Aq Life Number: 10-120912-1 <br />Warm 2, Rec N, Ag (segmented into 13i in <br />June 2014). Outfall 004 to Cow Camp <br />COUCYA13b: Aq Life Cold 1, Rec E, Ag <br />(segmented into 13g in June 2014) <br />Type of Facility: coal mine Flow: 0.0216- 6.444 MGD <br />Part I - Effluent Violations Penalty Determination <br />A. Potential Damage Component <br />Violation Type Adjustment Amount in <br />Dollars <br />Line 1 Effluent Violations (selenium NA $1,428.00 - <br />and iron) $3,122.00 <br />Peabody Sage Creek Mining, LLC (Peabody) owns and operates the Peabody Sage Creek Mine <br />Complex, an underground coal mining operation. Stormwater (surface runoff), spoils spring <br />water, and mine water at the mine are routed to sedimentation ponds that discharge into <br />Little Grassy Creek and Cow Camp Creek. <br />Pollutants and Beneficial Use: Limits for selenium and iron are water quality based and <br />were established for the protection of the beneficial uses of the receiving stream segments <br />and therefore, the parameter point values for these pollutants were derived from the <br />Beneficial Use Table of the Civil Penalty Policy (Figure 1). For selenium effluent violations <br />reported at Outfall 002A and 003A, a parameter point value of 7 was assigned based on the <br />potential for selenium to cause mutagenic effects ant the aquatic life class 2 beneficial use. <br />For selenium effluent violations reported at Outfall 004A a parameter point value of 8 was <br />assigned based on the potential for selenium to cause mutagenic effects and the aquatic <br />life class 1 beneficial use. For the iron effluent violations reported at Outfall 004A, a <br />parameter point value of 8 was assigned based on protection of the aquatic life class 1 <br />beneficial use. <br />Degree of Exceedance: The Percent Exceedance Multiplier values were determined based <br />on the actual flow values that were reported on the DMRs each month and the percent by <br />which the limit was exceeded for each specific effluent violation (Figure 3 of the Civil <br />Penalty Policy). <br />The attached Civil Penalty Calculation Worksheet displays the Percent Exceedance <br />Multiplier for each reporting period and the total calculated potential damage penalties for <br />the effluent violations that occurred between the 2"d quarter 2011 and the 2nd quarter <br />2014. <br />Peabody Penalty Computation Worksheet <br />Page 1 of 6 <br />