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' February 15, 2011 C-2009-087/Peabody Sage Creek Mine JDM <br />Inspection Topic Summary <br />NOTE: V=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 N - 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 R - 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 002, 003, and PeCoCo were frozen and snow covered at the time of the inspection. Pond embankments <br />were snow covered and showed no signs of damage or erosion during the inspection. Pond 004 was inaccessible <br />due to heavy snow cover and impassable roads. <br />Roadside ditches, drainage channels and culverts were snow-covered. <br />OTHER (SPECIFY): <br />This was a partial inspection of the Peabody Sage Creek Mine conducted by Jason Musick of CDRMS. Scott <br />Cowman of SCC accompanied the inspection. The weather was clear and the mine site was snow covered with a <br />substantial amount of snow throughout. No mining operations have been initiated 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 />The mine roads in and around the facilities area were snow-covered with plowing operations conducted in and <br />around the facilities and out to the PeCoCo Pond and to the existing well pad. Roads were snow-packed and <br />stable with no problems noted. <br />SUPPORT FACILITIES - Rule 4.04: <br />All support facilities at the north end of the approved facilities area are stable with no problems noted. A water <br />pipe was replaced in the approved area of the existing bathhouse no disturbance was conducted outside of the area <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4