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August 22, 2012 C -2009- 087 /Peabody Sage Creek Mine JDM <br />ROADS — Rule 4.03 Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and <br />Maintenance4.03.1(5) and (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 identified and appeared <br />stable at the inspection. Road culverts SC 19 and 15A were observed in the photos with no problems noted. <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 11 bond release application currently being reviewed by the Division. <br />The reclaimed areas are stable with good vegetation growth and no problems noted. <br />TOPSOIL — Rule 4.06 <br />Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.063; Redistribution 4.06.4: <br />Topsoil salvaging and storage was recently active in areas of drainage modification. Fresh topsoil has been <br />salvaged and is being placed at the toe of the approved topsoil pile. Vegetation on the topsoil pile is minimal. A <br />full growing season has yet to be achieved on the pile. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 7 <br />