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December 13, 2010 C-2009-087/Peabody Sage Creek Mine JDM <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 R - 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 N - Support Facilities On-site <br />R - Hydrologic Balance N - Signs and Markers <br />Y - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />R - Other N - Special Categories Of Mining <br />N - Processing Waste N - Topsoil <br />COMMENTS <br />HYDROLOGIC BALANCE - Rule 4.05 ? ?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 identified in the aerial photographs were pond 002, pond 004, POCOCO and pond 003. Pond 002was <br />holding water with ice covered at the outlet. Ponds 003 and 004 were snow and ice covered. Embankments <br />appeared stable with no evidence of damage or erosion noted. <br />The established reclaimed drainages were stable with no problems noted. <br />OTHER (SPECIFY): <br />This was an aerial inspection flown by Harry Ranney of the Colorado Division of Reclamation, Mining and Safety <br />(Division). Oblique aerial photographs were taken on December 13, 2010 and reviewed in the Denver office by <br />Jason Musick of the :Division on December 16, 2010. The site was snow covered with no active mining activities <br />being conducted at the time of the inspection. <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) ? ? Reclamation 4.03.1(7)/4.03.2(7): <br />All access roads and light-use roads identified in the aerial photographs were snow-covered and appeared to be <br />well maintained and stable with no signs of damage and no problems noted. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />The majority of the area of disturbance for the Sage Creek Mine has been previously disturbed and in phased bond <br />release status. The reclaimed areas identified in the aerial photographs were stable and snow covered with no <br />evidence of major erosion or damage. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4