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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />October 26, 2010 <br />Dennis Jones <br />Hayden Gulch Terminal, Inc <br />PO Box 670 <br />Hayden, CO 81639 <br />RE: Peabody Sage Creek Mine <br />3rd Quarter 2010 Impoundment Inspection Report <br />Permit C-2009-087 <br />Dear Mr. Jones, <br />The Colorado Division of Reclamation, Mining, and Safety (CDRMS) have found the above <br />referenced report to be in compliance with the following CDRMS regulation: <br />COLORADO <br />D I V1 S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />4.05.9(17) - Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) - A copy of the report shall be submitted to the Division on a quarterly basis. <br />The first quarter sediment pond inspection reports were received by the Division on 21 October 2010. <br />Sediment pond inspections were conducted on September 1St, 71h, and 9th. <br />It is noted that vegetation was observed in the emergency spillway of Pond 003. This observation <br />corresponds with observations made by the Division during recent site inspections of Pond 003. <br />Although identified as not clogging on the submitted pond inspection form, the noted vegetation <br />will need to be removed to ensure permitted functionality of the spillway. <br />The permitted non-clogging trash rack approved for Pond 004 has been removed and replaced <br />with two steel bars at the inlet of the culvert to ensure non-clogging. Please note that although <br />the deviation from the permitted non-clogging device may be more functional, a revision to the <br />approved Pond004 design will need to be updated to approve this change. <br />If you have any questions feel free to contact me. (303) 866-3567 ex 8134 <br />Sincerely, <br />Jason Musi <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines