2012-06-18_INSPECTION - C2009087 (2)

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June 4, 2012 C- 2009 - 087 /Peabody Sage Creek Mine JDM Inspection Topic Summary NOTE: YAnspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable • -Air Resource Protection N -Roads • -Availability of Records N -Reclamation Success NA - Backfill & Grading N - Revegetation NA - Excess Spoil and Dev. Waste NA - Subsidence N -Explosives NA - Slides and Other Damage N - Fish & Wildlife N - Support Facilities On -site R - Hydrologic Balance N -Signs and Markers R - Gen. Compliance With Mine Plan NA - Support Facilities Not On -site R - Other NA - Special Categories Of Mining NA - Processing Waste N -Topsoil COMMENTS HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: Pond 002 (Wadge Impoundment) was holding water at the time of the inspection. The pond was stable with no problems noted. The Pecoco Pond was holding water and was discharging into the upper sump as permitted at the time of the inspection. The embankments were stable and well vegetated at the time of the inspection. The primary CMP spillway was in good condition and the emergency spillway was stable with no problems noted. The Pecoco Pond had no problems noted. Culverts and ditches were stable and in compliance at the time of the inspection. Ditches FA -D5 and FA -D6 above the portal area are near completion. No problems were noted. The upper sump was holding water at the time of the inspection. Water was discharging from the Pecoco Pond into the upper sump with a small amount of discharge noted from the upper sump into ditch RC -D3. The embankments of the upper sump were bare and were stable at the time of the inspection. No problems were noted with the exception of the following: - As with the April and May 2012 inspections, at the left and the right of the primary spillway CMP, the ground appeared to be saturated with moisture. All other areas around the outside of the sump embankments were dry. According to Scott Cowman of PSCM, mine personnel have identified this area as ground water that is percolating to the surface. The location that is saturated sits below the lowest elevation of the Upper Sump; this might exclude the Upper Sump as the source of the saturation of the Area. This are should be monitored to ensure instability of the Upper Sump and Ditch RC -D3 is not compromised. Number of Partial Inspection this Fiscal Year: 11 Number of Complete Inspections this Fiscal Year: 4 Page 2 of 5