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July 19, 2011 <br />C- 2009- 087/Peabody Sage Creek Mine <br />JDM <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, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Pond 004 was holding water and discharging at the time of the inspection. The pond embankment was stable with <br />good vegetation established and no evidence of erosion or damage. The primary spillway was functioning as <br />designed and the emergency spillway was stable with no problems noted. Discharge was clear and measured at <br />.19 cfs at the flume. <br />Pond 002 (Wadge Impoundment) was holding water and discharging at the time of the inspection. The pond was <br />stable with no problems noted. The discharge was clear and the amount of discharge was not identified through <br />the flume. However, the recording station was observed and functioning as required. <br />The Pecoco Pond contained water and was discharging at the time of the inspection. The embankments were <br />stable and well vegetated at the time of the inspection. The primary CMP spillway was in good condition and the <br />emergency spillway was stable with no problems noted. The Pecoco Pond had no problems noted with the <br />exception of the following: <br />- A large amount of houndstouge rosettes were observed both on the pond embankment and in the area of the pond <br />These weeds should be managed as required per the PSCC mine permit. <br />Pond 003 was holding water and had a small amount of discharge at the time of the inspection. The pond <br />embankments were stable. Good vegetation was observed on the pond embankments and around the pond. The <br />emergency spillway was stable and the primary spillway was functioning as designed. The discharge was clear. <br />No problems were noted with the exception of the following: <br />- Houndstounge were observed on the pond embankments. <br />GENERAL MINE PLAN COMPLANCE: <br />The Peabody Sage Creek Mine was permitted in 2010 with initial construction activities beginning in May 2011. <br />At the time of the inspection, topsoil salvaging and storage is ongoing at the locations of approved facilities. <br />Topsoil operations have neared completion with the exception of the area of the south facilities pad. The <br />excavation of the portal area and the buildup of the coal handling facilities area, the facilities area and the <br />substation location is on- going. According to Joe Shoemaker of SCC, A time frame of September is the goal for <br />excavation and dirt work activities. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 3 of 5 <br />