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March 7, 2012 C -2009- 087 /Peabody Sage Creek Mine JDM <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 complete. No mining has been conducted at the site. <br />Activities are limited to the installation and start up of the electrical substation and power lines. <br />OTHER (SPECIFY): <br />This was a complete coal inspection conducted by Jason Musick of CDRMS. Jen Hunt of Peabody Energy <br />accompanied the inspection. The weather was clear and the site was wet and snow covered during the inspection. <br />Construction activities continue at the site with the development of facilities areas. Development of the portals has <br />yet to occur. <br />ROADS — Rule 4.03 Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) Reclamation 4.03.1(7)/4.03.2(7): <br />All roads from the North facilities Area to the topsoil pile at the South Facilities Area were accessible. The roads <br />were snow packed or wet at the time of the inspection. Road ditches and culverts were snow covered with n <br />problems noted. <br />SUPPORT FACILITIES - Rule 4.04: <br />The permitted substation was installed at the south facilities area with all other facilities construction ongoing. The <br />temporary bathhouse at the north facilities area is near completion with no problems noted. All other facilities <br />were stable with no problems noted. <br />Powerline upgrades <br />TOPSOIL — Rule 4.06 Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.063; <br />Redistribution 4.06.4: <br />Topsoil salvaging and storage is complete in the area of the approved topsoil pile. Topsoil has been salvaged from <br />the area of the portal, the south coal handling facilities area, south facilities area, the slope east of the portal area <br />and various locations of ditches and roads. The topsoil pile has been seeded and graded to slope. Diversion <br />ditches are in place around the approved topsoil pile location. The topsoil stockpile was stable and snow covered <br />at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 4 of 6 <br />Electrical substation <br />