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Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />Y - Roads <br />N - Availability of Records <br />Y - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />R - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />Y - Support Facilities On -site <br />R - Hydrologic Balance <br />N - Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />R - Other <br />NA - Special Categories Of Mining <br />N - Processing Waste <br />R - Topsoil <br />August 17, 2011 <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />The Peabody Sage Creek Mine is approved to conduct blasting activities for both portal excavation and other <br />construction and operational activities. Blasting Activities are ongoing as approved in the area of the portal <br />excavation. Three Blast drills were on -site and drilling at the time of the inspection. No blasting occurred during <br />the inspection of the site. <br />Blasting signs were located on all major access roads leading to the blasting area. All signs displayed all required <br />information. No problems were noted. <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 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 />- Heavy scotch thistle patches 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 />Ditch SCM -1 into the Pecoco Pond appears to have been damaged. The runoff has been contained in the ditch. <br />However the ditch should be maintained and repaired to the approved designs. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />C- 2009- 087/Peabody Sage Creek Mine <br />COMMENTS <br />Page 2 of 5 <br />JDM <br />