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April 17, 2012 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 />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 />NA - Explosives <br />NA - Slides and Other Damage <br />Y - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />N -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 />N - Processing Waste <br />R - Topsoil <br />COMMENTS <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, <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 002 (Wadge Impoundment) was holding water at the time of the inspection. The pond was stable with no <br />problems noted. The discharge was clear. The amount of discharge was not identified through the flume. <br />However, the recording station was observed and functioning as required. <br />Pond 002 Ditch SCM -6 <br />The Pecoco Pond was holding water and was discharging into the upper sump as permitted at the time of the <br />inspection. The embankments were stable and snow covered at the time of the inspection. The primary CMP <br />spillway was in good condition and the emergency spillway was stable with no problems noted. The Pecoco Pond <br />had no problems noted. <br />- It is noted that a track mounted excavator was mobilized at the Pecoco Pond, however no disturbance was noted <br />Number of Partial Inspection this Fiscal Year: 10 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 7 <br />