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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />August 5, 2011 <br />Dennis Jones <br />Hayden Gulch Terminal, Inc <br />PO Box 670 <br />Hayden, CO 81639 <br />RE: Peabody Sage Creek Mine <br />2 °d Quarter 2011 Impoundment Inspection Report <br />Permit C- 2009 -087 <br />Dear Mr. Jones, <br />STATE OF COLORADO <br />The Colorado Division of Reclamation, Mining, and Safety (CDRMS) have found the above <br />referenced report to be in compliance with the following CDRMS regulation: <br />4.05.9(17) — Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) — A copy of the report shall be submitted to the Division on a quarterly basis. <br />Pond 002, Pond 003, and Pond 004 were discharging at the time of the inspections. <br />If you have any questions feel free to contact me. (303) 866 -3567 ex 8134 <br />Sincerely, <br />Jason Mu <br />Environmental Protection Specialist <br />Office of <br />Minnrl 1 and Rarlamatinn <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The second quarter sediment pond inspection reports were received by the Division on 28 July 2011. <br />Sediment pond inspections were conducted on June 2 13 16 and 23 <br />It is noted that the replacement of the plug on the truck wash line was the one maintenance item noted <br />at Pond 002. No other maintenance work was conducted or identified and all impoundments were <br />functioning as designed at the time of the inspection. <br />Office of <br />Denver • Grand lunction • Duraneo Active and Inactive Mines <br />