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June 1, 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 />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 N - Support Facilities On-site <br />R - Hydrologic Balance N - 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 />N - Processing Waste R - 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 />The Pecoco Pond and pond 004 were the only impoundments identified in the aerial photographs. Both Pond 004 <br />and the Pecoco Pond were holding water at the time of the inspection. Pond embankments appeared stable with <br />good vegetation and no evidence of erosional features or problems noted. <br />GENERAL MINE PLAN COMPLANCE: <br />Initial construction has begun in the area of the approved South Facilities Area. Construction of Road D and the <br />area of the Coal Handling Facilities was observed in the photographs. Disturbance appears to be within the <br />approved disturbance area and in the locations permitted. <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 June 1, 2011 and reviewed in the Denver office by Jason <br />Musick of the Division on June 7, 2011. The weather was clear and the site appeared dry at the time of the <br />inspection. The photographs displayed evidence of the initial stages of construction of facilities in and around the <br />area of the approved southern facilities area. <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 />Haul roads E-1, D and access road E-2 were stable with no problems noted. Permitted Haul Road D extending <br />from Road B to the area of the Southern Coal Handling Facilities was in the process of construction during the <br />inspection. Road D appears to be in the location permitted and reflects the approved configuration displayed on <br />Map 2.05.3M 1 A in the PAP. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6