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November 15, 2011 C- 2009 - 087 /Peabody Sage Creek Mine JDM <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R -Roads <br />R - Availability of Records <br />Y - Reclamation Success <br />NA - Backfill & Grading <br />Y - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />NA - Explosives <br />NA - Slides and Other Damage <br />Y - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />Y -Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />R - Other <br />NA - Special Categories Of Mining <br />NA - Processing Waste <br />R - Topsoil <br />COMMENTS <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All records were checked at the Peabody Sage Creek Mine offices. All required records were on site and up to <br />date at the time of the inspection. The DRMS Availability of Records is attached to this inspection report. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; 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 with approximately half of the surface <br />frozen. The pond embankment was snow covered and stable with good vegetation established and no evidence of <br />erosion or damage. The primary spillway was functioning as designed and the emergency spillway was stable <br />with no problems noted. Discharge was clear. No problems were noted. <br />Pond 004 <br />Pond 002 (Wadge Impoundment) was holding water and discharging at the time of the inspection. The pond was <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 7 <br />