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July 9, 2012 C -2009- 087 /Peabody Sage Creek Mine JDM <br />W , <br />Portal Area <br />OTHER (SPECIFY): <br />This was a complete coal inspection conducted by Jason Musick of CDRMS. The weather was clear and the site <br />was dry during the inspection. Construction activities continue at the site with the development of facilities areas. <br />Development of the portals and active mining has begun with the four portal entries. The coal and underground <br />development waste is being stockpiled at the coal handling facilities area and truck shipped to the processing and <br />refuses disposal area of the Foidel Creek Mine. Jeri Hunt of Peabody Energy accompanied the inspection. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and Maintenance4.03.1(5) and <br />(6)/4.03.2(5) and (6) Reclamation 4.03.1(7)/4.03.2(7): <br />All roads from the North facilities Area to the topsoil pile at the South Facilities Area were accessible and stable at <br />the inspection. Roadside culverts and ditches were stable and in compliance at the time of the inspection. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />The majority of the mine site was previously approved under the Seneca II Mine (C- 1980 -005). These areas, with <br />the exception of the currently approved disturbance boundary have been Phase II released and the remaining areas <br />are currently a part of SL -1 which is a Phase II bond release application currently being reviewed by the Division. <br />The reclaimed areas are stable with good vegetation growth and no problems noted. <br />SIGNS AND MARKERS — Rule 4.02: <br />Mine ID signs and markers were in place and stable at the time of the inspection. No problems were noted with <br />the exception of the following: <br />- Due to recent construction of the facilities septic and leech field, disturbance markers will need to be relocated to <br />delineate the approved disturbance area. <br />- With the recent approval of TR4, the approved disturbance boundary has changed. Disturbance boundan- <br />markers will need to be placed around the revised disturbance boundary area. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 8 of 11 <br />