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June 5, 2012 X- 2006 - 227 -01 /Juniper Coal 2006/2008 Big Elk Creek <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 of <br />Reclamation, Mining, and Safety (Division). A request for bond release was received by the Division on <br />March 7, 2012. Due to seasonal ground conditions following receipt of the request, the inspection was <br />delayed until conditions allowed access and the growing season was well underway. Jen Hunt of <br />Peabody Sage Creek Mining represented the operator. The weather was clear and mild and ground <br />conditions were dry. <br />Thirty -three (33) holes were proposed and approved under the original and amended NOI. Only eight <br />holes were drilled at seven site locations. <br />Sites JCC -007, 007S, 006, 005S, 001, and 010S were visited on the ground. All sites were found <br />adequately reclaimed with good vegetation and no evidence of erosion or damage of any kind. <br />Site JCC 003S was viewed using remote imagery at www.flashearth.com It is located at 40 deg 22' <br />59.7 "N 107 deg 21'38.7"W. It appeared well reclaimed. <br />Site JCC 004 was viewed using remote imagery at www.flashearth.com It is located at 40 deg 22' <br />48.8 "N 107 deg 21'5.6"W. It appeared well reclaimed. <br />The Division holds a corporate surety bond in the amount of $149,644.00. Nothing found during the <br />inspection would preclude the full release of bond for this project. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 4 <br />