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March 7, 2012 C- 1980 - 005 /Seneca II Mine JDM <br />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 />R -Roads <br />R - Availability of Records <br />N - Reclamation Success <br />NA - Backfill & Grading <br />N - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />NA - Explosives <br />NA - Slides and Other Damage <br />N - Fish & Wildlife <br />NA - Support Facilities On -site <br />R - Hydrologic Balance <br />Y -Signs and Markers <br />Y - 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 />N - Topsoil <br />COMMENTS <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All records were on file and inspected at the Peabody Sage Creek Mining offices. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Established ditches 41, 42, 43, 44, 45, SIIPM -8, SIIPM -13 and SIIPM -13A were partially observed from the ranch <br />road located within the Foidel Creek Mine permit boundary. The ditches were snow - covered with no evidence of <br />damage and no problems noted with the exception of the damage to SIIPM -8 identified during the September <br />inspection. The damage to the SIIPM-8 ditch was not identified due to snow cover; however, no repair work has <br />been conducted due to winter. <br />OTHER (SPECIFY): <br />This was a complete coal inspection of the Seneca II mine conducted by Jason Musick of CDRMS. The mine site <br />is inaccessible due to road and weather conditions. The observations made during the inspection were conducted <br />from the Foidel Creek Mine Fish Creek Borehole access /ranch road. The site displayed a substantial amount of <br />snow -cover throughout, with no evidence of activity or damage, with the exception noted in the hydrologic <br />balance section of this report. <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 />The South Road access road was partially observed and was snow covered at the time of the inspection. Roads <br />have not been recently plowed and are inaccessible due to on the ground conditions. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 4 <br />