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June 14, 2011 C-2009-087/Peabody Sage Creek Mine JDM <br />maintenance to prevent future erosion of the area. <br />OTHER (SPECIFY): <br />This was a partial coal inspection conducted by Jason Musick of the Colorado Division of Reclamation, Mining <br />and Safety on June 14, 2011. The purpose of this inspection was to evaluate the on-the-ground condition with <br />respect to the Peabody Sage Creek Mine's Phase II bond release application, SL-01 in accordance with Rule <br />3.03.2(2). Jay James of Peabody Energy accompanied the inspection. The weather was cloudy and raining in the <br />early morning and clear the rest of the inspection the ground was dry during the inspection. All areas to be <br />inspected were accessible and visible. <br />Lands requested for liability release under SL-01 include 462.4 acres of land reclaimed beginning in 1978 and <br />through 2005 previously permitted under the Seneca II Mine (C-1980-005). Surface land ownership is private <br />(State of Colorado) and Mineral ownership is private (State of Colorado). Lane Osborn, the northwest Colorado <br />State Land Board Representative, was notified of the inspection and no response was received. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />In terms of meeting the criteria for Phase II bond release, the reclaimed areas at the Peabody Sage Creek Mine <br />were acceptable with the exception of the above mentioned maintenance and repair issues. The issues mentioned <br />above are included in the Sage Creek Mine's annual rill and gully maintenance and weed management plan. The <br />issues mentioned should not affect the SL1 bond release in terms of approval. <br />REVEGETATION - Rule 4.15 <br />? Vegetative Cover; Timing: <br />The establishment of vegetation was inspected to support the post mining land use of rangeland and wildlife <br />habitat. Vegetative cover and bare areas were inspected with respect to the post mining land use and the potential <br />for excessive contribution of suspended solids to streamflow outside of the permit area. Species composition was <br />visually evaluated to ensure that predominate species were observed to support the post mining land use. Sage <br />Creek Mine's vegetation cover and diversity are acceptable and no problems were noted with revegetation at the <br />time of the inspection. Few noxious species were noted during the inspection with the exception of the following <br />locations: <br />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 3 of 5