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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832-8106 <br />May 30, 2012 <br />Dennis Jones <br />Seneca Coal Company, LLC. <br />PO Box 250 <br />Hayden, CO 81639 <br />RE: Peabody Sage Creek Mining, LLC, Peabody Sage Creek Mine <br />I" Quarter 2011 Impoundment Inspection Report <br />Permit C- 2009 -087 <br />Dear Mr. Jones: <br />COLORADO <br />p I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining, and Safety ( CDRMS) have found the above referenced <br />reports to be in compliance with the following CDRMS regulation: <br />4.05.9(17) — Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) — A copy of the report shall be submitted to the Division on a quarterly basis. <br />The first quarter sediment pond inspection reports were received by the Division on 21 May 2012. <br />Sediment pond inspections were conducted on January 9 and January 18 <br />No maintenance work was conducted or identified and all impoundments were functioning as designed <br />at the time of the inspection. Pond 002, Pond 003, and Pond 004 were discharging at the time of the <br />inspections <br />If you have any questions feel free to contact me. (303) 866 -3567 ex 8134 <br />Sincerely, <br />Jason Musick <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />