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June 14, 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 N -Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading R - Revegetation <br />NA - Excess Spoil and Dev. Waste NA - Subsidence <br />N -Explosives NA - Slides and Other Damage <br />N - Fish & Wildlife NA - Support Facilities On-site <br />R - Hydrologic Balance N -Signs and Markers <br />Y - Gen. Compliance With Mine Plan NA - Support Facilities Not On-site <br />R - Other NA - Special Categories Of Mining <br />NA - Processing Waste R -Topsoil <br />COMMENTS <br />HYDROLOGIC BALANCE - Rule 4.05 <br />?Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage - Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The Peabody Sage Creek Mine's SL-1 bond release area consists of portions of Bond Release Blocks (BRB) 4. <br />The BRB includes permanent established drainages SIIPM-9, SIIPM-6, SIIPM-6B, SIIPM-6A, SIIPM-16, SIIPM- <br />5, SIIPM-18, SIIPM-19, and SIIPM-3. Pond 004, Pond 002, and the Pecoco Pond were approved as a permanent <br />impoundments, with Pond 004 within the bond release area and the Pecoco Pond and Pond 002 receiving run-off <br />from the bond release area. Ponds 004, 002, and pecoco were discharging at the time of the inspection with clear <br />water. The water in the Ponds was clear with no heavy sediment observed. The reclaimed drainages and ditches <br />were inspected and found to be in good condition. The bond release area was stable with no major signs of <br />instability, erosion, or movement, with the exception of the following repair and maintenance items: <br />- A small patch of bare.ground along the fence line northeast of stock pond T29 was observed. A small erosional <br />feature has was observed in the bare ground patch. This area should be included in the annual rill and gully <br />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 5