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June 5, 2012 X- 2006 - 214 -01 /BTU Empire 2006 Expl Project <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 />R - 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 a partial bond release was received by the <br />Division on March 28, 2012. The operator would also like the ability to extend the NOI to possibly <br />complete drilling on locations that have not been drilled to -date. Jeri Hunt of Peabody Sage Creek <br />represented the operator. The weather was clear and mild and ground conditions were dry. <br />Two of the locations are within the Trapper Mine ( #C- 1981 -010) permit boundary. We were granted <br />permission by Trapper representatives to proceed to the first location on the west side of the reclaimed <br />portion of the Trapper Mine. <br />Site WF -005 was difficult to positively identify on the ground. It appeared at coordinates 40 0 26'23.6 "N <br />107 using remote imagery on www.flasheartli.com The area was well- vegetated and no <br />problems in the suspected location were identified. <br />Site WF -006 was found on the ground at coordinates 40 0 26'31.5 "N 107 0 37'42.0 "W. No meaningful <br />vegetation representing the seed mix could be identified on the ground. The site appeared in poor <br />condition regarding vegetation and it is possible that the site was not re- seeded. This site cannot be <br />released at this time due to the unsuccessful revegetation efforts. <br />Site WF -008 was found at 40 0 26'35.6 "N 107 0 38'34.5 "W. Remote imagery confirms that the field <br />inspection found this location on the ground. The site is well reclaimed with no problems noted. <br />Site WF -002 was drilled on a refuse pile at the Empire Mine but the pile is now reclaimed and <br />revegetated. No sign of the site was expected and none was located on the ground. <br />Site WF -003 is a drill pad that was created but the site was not drilled. The pad site remains unreclaimed <br />at this time. <br />Based upon the operators request to complete the approved drilling at some point in the future and the <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 5 <br />