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May 21, 2012 C -2009- 087 /Peabody Sage Creek Mine JDM <br />Pecoco Pond <br />Pond 004 was holding water with a trickle discharge at the time of the inspection. The primary spillway was <br />fiinctioning as designed and the emergency spillway was stable with no problems noted. The embankments were <br />stable and well vegetated with no problems noted, with the exception of the following: <br />- the pond embankment was damaged on the pond side '40 feet east of the primary spillway. This damage was a <br />small slump area, 5'X10' that appeared to be caused by the failure due to animal burrows. The embankment was <br />stable with signs of failure or the possibility of failure in the short term. This damage should be addressed in order <br />to maintain the integrity of the embankment. <br />Pond 004 Embankment Damage <br />Pond 003 was holding water with a trickle discharge at the time of the inspection. the primary and emergency <br />spillways were stable with no problems noted. The embankments showed evidence of recent work with animal <br />burrow filling. No problems were noted during the inspection. <br />Culverts and ditches were stable and in compliance at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 10 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 3 of 8 <br />