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September 27, 2010 C-2009-087/Peabody Sage Creek Mine JDM <br />- an unidentified culvert was located at the confluence of SIIPM-5 and RA-1-D1 ditches which is not located on <br />Map 2.05.3 M4 <br />- Culvert 3IA half full of sediment and damaged. <br />- Culvert A8 damaged at inlet and will require maintenance. <br />- Culvert 13A damaged at outlet. <br />- Culvert 53A damaged at inlet and outlet. <br />The following groundwater sites were identified during the inspection: SLGAL32, 11 NMS, SWC10, WC35, <br />WS35, SP22, SSP63, SSP64, and SSP65. <br />Reestablished drainage SIIPM-11 stable with a noted spring established along the south side of the channel. The <br />spring water is moving outside the channel and should be diverted into the channel. <br />: General Mine Plan Compliance <br />This was a complete inspection of the Sage Creek Mine conducted by Jason Musick and Dan Hernandez of <br />CDRMS. Scott Cowman of Peabody Sage Creek Coal Company accompanied the inspection. The mine site was <br />dry and the weather was clear at the time of the inspection. The office was being remodeled at the time of the <br />inspection with no mining operations being conducted. Scott Cowman stated that initial mining operations will be <br />initiated when ground conditions are suitable in the Spring of 2011. <br />: Roads <br />The mine roads on site were stable with no damage noted at the time of the inspection. The roadside ditches were <br />stable with no major down cutting or erosion identified. Permitted road construction has yet to begin. <br />: Reclamation Success <br />The majority of the area of disturbance for the Sage Creek Mine has previously been disturbed and released by the <br />Seneca Coal Company. Established drainages and backfilled areas were stable with no erosional features noted. <br />The area of the pre-law Wolf Creek Pit was stable during the inspection. Small gullying was observed on the <br />eastern slope of the area above the small water feature. The spoil slopes on the backside of the area appear stable <br />with light vegetation cover noted. <br />: Revegetation <br />The extent of the disturbance area displayed good vegetation cover throughout. The area of the proposed Phase I <br />release of the Seneca Mine (8 acres) displayed evidence of recent rill and gully repair on the north slope of the <br />parcel. <br />: On Site Facilities <br />On site facilities areas appeared stable at the time of the inspection. The following maintenance items will need to <br />be addressed: <br />- Seneca substation 34 was located within 100ft of a stream. This will need to be confirmed as permitted to <br />ensure compliance. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 7