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June 4, 2012 X- 2008 - 229 -01 /Colo Coal Resources Cow Camp UG <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 />N - Backfill & Grading <br />N - Fish & Wildlife <br />N - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />N - Roads <br />N - Reclamation Success <br />Y - Revegetation <br />N - Slides and Other Damage <br />N - Signs and Markers <br />N - Topsoil <br />COMMENTS <br />KAG <br />This was a coal exploration bond release inspection conducted by Kent Gorham of the Division <br />of Reclamation, Mining, and Safety (Division). A request for bond release was received by the <br />Division on February 13, 2012. Due to seasonal ground conditions following receipt of the <br />request, the inspection was delayed until conditions allowed access and the growing season <br />was well underway. Jen Hunt of Peabody Sage Creek Mining represented the operator. The <br />weather was clear and mild and ground conditions were dry. <br />REVEGETATION <br />This project resulted in 19 drill hole locations, of which five were converted to monitoring wells. Site 14, <br />site 13, and site 23 (three well cluster) are monitoring wells. Site 30 was converted to a water production <br />well for a private landowner and a Division of Water Resources permit has been approved ( #279072) for <br />20 Mile Sheep, LLC. <br />Sites selected for inspection included 12, 13, 17, 20, 22, 27, 28, 29, and 33. Other sites were inspected <br />using www.flashearth.com Site 12 was viewed on the ground on private land near the haul road that <br />leads to the Yoast Mine. It was located near a corral and disturbance associated with private ranch <br />interests. A water well exists very near the location of the exploration. It is unclear whether this site was <br />converted to a water production well. <br />Site 17 was located along a two track road leading south from the Sage Creek Mine office area. It was <br />well vegetated and had a modest number of weeds, including houndstongue, along with various grasses <br />and forbs found in the seed mix. <br />Site 13 was found and is a water monitoring well completed in the Wadge underburden. It is included in <br />the Sage Creek Mining permit #C- 2009 -087. The site is fully reclaimed with the exception of the well <br />casing. <br />Site 20 was viewed at 40 deg 23' 59.4 "N 107 deg 6'29.7" W using www.flashearth.com It appeared well <br />reclaimed. <br />Site 22 was viewed on the ground along with a short reclaimed section of road leading to the location. It <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 5 <br />