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September 13, 2011 C- 2009 - 087 /Peabody Sage Creek Mine JDM <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. <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 with evidence burrow repair noted. Good vegetation was observed on the pond <br />embankments and around the pond. The emergency spillway was stable and the primary spillway was functioning <br />as designed. No problems were noted with the exception of the following: <br />- Burrows were observed on the embankment and should be backfilled to ensure stability. <br />Culverts A5, A3, 33A, 30A, 29A, 47A, 62A, 32A, 2A, 15A, A8, 2AA, 9A, 12A, 59A, 55A, 13A, 53A, 64A, 54A, <br />and 52A were observed during this inspection. New Culverts SC -10 and SC -20 were in the process of installation <br />at the time of the inspection. All culverts were in place with no problems noted, with the exception of the <br />following: <br />- During the September 2010 complete inspection, an unidentified culvert was observed under a small two track <br />ranch road north of culvert 29A. This culvert was not part of the sediment control system and has been removed. <br />A lower crossing was created in its place to allow run -off from the roadside ditch. This run -off has created a small <br />head cut on the outlet side that will require monitoring or maintenance to ensure the erosion does not worsen. <br />New ditches SCM -5, RE -D 1, SIIPM -15 and FA -D8 have been constructed as designed with no problems noted. <br />The topsoil in the area of the upper sump was in the process of being stockpiled. The lower sump was in the <br />process of construction during the inspection. No problems were noted. <br />Lower Sump Excavation <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 near completion with small construction areas <br />remaining. The construction of ditches, the installation of culverts, blasting the portal areas and the interface of <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 8 <br />