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June 4, 2012 X-2009-231-00/Sage Creek Mine KAG <br /> <br /> <br /> <br /> <br />Inspection Topic Summary <br />YNRVNA <br />NOTE: =Inspected =Not Inspected =Comments Noted =Violation Issued =Not Applicable <br />N - Air Resource Protection N - Roads <br />NN <br /> - Backfill & Grading - Reclamation Success <br />NY <br /> - Fish & Wildlife - Revegetation <br />NN <br /> - Hydrologic Balance - Slides and Other Damage <br />NN <br /> - Gen. Compliance With Mine Plan - Signs and Markers <br />NN <br /> - Other - Topsoil <br /> <br /> <br /> <br />COMMENTS <br /> <br /> <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 />February 13, 2012. Due to seasonal ground conditions following receipt of the request, the inspection <br />was 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 />This project resulted in 31 drill hole locations, of which one, CCU36 was completed as a water production <br />well, (69012-F) permitted to the State Land Board. <br />Sites randomly selected for inspection included 34, 36, 39, 43, and 45. Other sites were inspected using <br />www.flashearth.com. <br />Site 45 was located in a remote area of Section 15, T5N R87W, slightly north of an existing two track <br />oo <br />road. The exact coordinates are 40It was found well vegetated and had a <br />modest number of weeds, including houndstongue, along with various grasses and forbs which make-up <br />a portion of the reclamation seed mix. <br />oo <br />Site 39 was difficult to locate on the ground. Its coordinates are 40 <br />reclaimed area appeared visible using remote imagery and given the fact that it could not be positively <br />located on the ground, it appears the site is well reclaimed. <br />Site 34 was viewed on the ground. The site displayed some weeds but nothing that was unusual for the <br />oo <br />area. Cattle were present in the immediate vicinity. The site is located at 40 <br />Site 36 was found completed as a water production well. It was identified as a flowing artesian well in <br />drilling reports. The well was flowing a trickle, likely a remnant of function to prevent freezing and <br />bursting during winter conditions. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br /> <br />25 <br />Page of <br /> <br /> <br />