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March 15, 2011 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 />Y - 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 />Y - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance R -Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />R - 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 were checked at the Peabody Sage Creek Mine offices. See the DRMS Availability of Records list <br />attached. <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 and 003 were inspected. Ponds 003 and 002 were frozen and snow-covered at the time of the <br />inspection. The pond embankments were snow-covered and stable with no evidence of damage noted. POCOCO <br />Pond and Pond 004 were inaccessible do o road conditions and snow-cover. <br />All ditches and culverts were snow-covered at the time of the inspection. <br />GENERAL MINE PLAN COMPLANCE: <br />The Peabody Sage Creek Mine remains idle with no mining activities occurring at the time of the inspection. <br />Scott Cowman of PSCC stated that the likelihood of a May start time is foreseen. <br />OTHER (SPECIFY): <br />This was a complete coal inspection conducted by Jason Musick of CDRMS. Scott Cowman of PSCC <br />accompanied the inspection. The mine site was snow-covered and the weather was clear at the time of the <br />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 />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6