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April 17, 2012 C -2009- 087 /Peabody Sage Creek Mine JDM <br />Portal Area and Portal Sump #1 <br />OTHER (SPECIFY): <br />This was a partial coal inspection conducted by Jason Musick of CDRMS. The weather was clear and the site <br />was partially dry during the inspection. Construction activities continue at the site with the development of <br />facilities areas. Development of the portals and active mining has yet to occur. <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. The permitted leach <br />field and septic system construction was ongoing at the time of the inspection. All temporary erosion control <br />structures were in place with no problems noted. All other facilities were stable with no problems noted. <br />TOPSOIL — Rule 4.06 <br />Removal 4.06.2 Substitute Materials 4.06.4(4); Storage and Protection 4.063; Redistribution 4.06.4: <br />Topsoil salvaging and storage is complete in the area of the one approved topsoil pile. Topsoil has been salvaged <br />from the area of the portal, the south coal handling facilities area, south facilities area, the slope cast of the portal <br />area 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 with no evidence of <br />erosion or damage at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 10 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 5 of 7 <br />