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November 30, 2010 C-2009-087/Peabody Sage Creek Mine JDM <br />Inspection Topic Summary <br />NOTE: VAnspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />N - Air Resource Protection R -Roads <br />R - Availability of Records N - Reclamation Success <br />NA - Backfill & Grading N - Revegetation <br />NA - Excess Spoil and Dev. Waste NA - Subsidence <br />NA - Explosives NA - Slides and Other Damage <br />N - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance Y -Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />N - Other N - Special Categories Of Mining <br />NA - Processing Waste N -Topsoil <br />COMMENTS <br />AVAILABILITY OF RECORDS - Rule 5.02.4(1): <br />All records have been moved from the Peabody Twentymile Coal Company office to the Sage Creek offices. <br />HYDROLOGIC BALANCE - Rule 4.05 El ?Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage - Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Ponds 003 and 002 were inspected. Pond 003 was frozen and snow-covered at the time of the inspection. Pond <br />002 was partially frozen and snow-covered. The pond embankments were snow covered and stable with no <br />evidence of damage. POCOCO Pond and Pond 004 were inaccessible do to snow cover. <br />GENERAL MINE PLAN COMPLANCE: <br />This was a partial inspection of the Peabody Sage Creek Mine conducted by Jason Musick of CDRMS. Prior to <br />the on the ground inspection, Mike Ludlow was contacted and informed of the inspection. The mine site was <br />covered with a substantial amount of snow throughout. The mine office remodel has been completed and are <br />currently occupied. No mining operations have been initiated. <br />ROADS - Rule 4.03 ? ? Construction 4.03.1(3)/4.03.2(3) ? ? Drainage 4.03.1(4)/4.03.2(4) ? ? Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6)0 ?Reclamation 4.03.1(7)/4.03.2(7): <br />The mine roads in and around the facilities area were snow-covered and stable with plowing operations conducted <br />only in the areas of the office. <br />SUPPORT FACILITIES - Rule 4.04: <br />The mine office is in use with all other facilities areas un-occupied at the time of the inspection. <br />ENFORCEMENT ACTIONS/COMPLIANCE <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4