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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />September 4, 2012 <br />Dennis Jones <br />Sage Creek Coal Company, LLC <br />PO Box 250 <br />Hayden, CO 81639 <br />RE: Peabody Sage Creek Mine, Permit C- 2009 -087 <br />COG - 0048275 Second Quarter 2012 Discharge Monitoring Report Review <br />Dear Mr. Jones: <br />COLORADO <br />Q I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining, and Safety (CDRMS) has reviewed and found the <br />above referenced report to be in compliance with Rule 4.05.13(2). The second quarter 2012 Discharge <br />Monitoring Reports were received by the Division on 30 August 2012. <br />All outfalls permitted under COG - 0048275 discharged during the second quarter 2012. One exceedance <br />of effluent limits was noted for both Outfall 004 and Outfall 002 during the second quarter, the 30 -day <br />average selenium standard of 4.6 ug /l was exceeded at Outfall 004 on June 11 (5.7 ug /1) and at Outfall <br />002 on June 6 th (47 ug /1). Based on passed exceedances of the selenium standard, PSCM also conducted <br />tests for total recoverable selenium in addition to the potentially dissolved value. <br />Included with the DMR submittal was the lab report for the selenium sample that was taken at 004 and <br />002. <br />It is noted that based on a Memorandum of Understanding between the Division of Reclamation, Mining <br />and Safety and the Water Quality Control Division (WQCD), the WQCD will be responsible for <br />enforcing CDPS permit conditions including the above referenced exceedances. <br />Whole Effluent Toxicity tests were collected for analysis during the first quarter. The tests indicated <br />that the effluent was not acutely toxic to Pimephales promelas or Ceriodaphnia dubia. <br />If you have any questions feel free to contact me. (303) 866 -3567 ex 8134 <br />Sincerely, <br />Jason Musick <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />