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November 14, 2012 C- 2009 - 087 /Peabody Sage Creek Mine JDM <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R -Roads <br />R - Availability of Records <br />R - Reclamation Success <br />NA - Backfill & Grading <br />N - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />• -Explosives <br />NA - Slides and Other Damage <br />• - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />R -Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />NA -Other <br />NA - Special Categories Of Mining <br />NA - Processing Waste <br />Y - Topsoil <br />COMMENTS <br />This was a complete coal inspection conducted by Jason Musick of CDRMS. The weather was clear and the site <br />was initially frozen at the beginning of the inspection and wet at the completion. Construction activities continue <br />at the site with the development of facilities areas. Active mining has been idle since September 2012. The coal <br />and underground development waste has been stockpiled at the coal handling facilities area and will be truck <br />shipped to the processing and refuse disposal area of the Foidel Creek Mine upon completion of the RCR 27 <br />round - about. Elliott Russell of CDRMS and Jeri Hunt of Peabody Energy accompanied the inspection. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All records were checked at the Peabody Sage Creek Mine offices. All required records were on site and up to <br />date at the time of the inspection, with the exception of the following: <br />- The 2011 AHR was not on file <br />The DRMS Availability of Records is attached to this inspection report. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />The explosives storage pad was stable. The installation of the chain link fence around the pad has been completed <br />and the gate was closed and locked. No problems were noted. <br />FISH and WILDLIFE — Rule 4.18: <br />The post mining land use for the Peabody Sage Creek Mine is approved as Rangeland/Wildlife Habitat. The <br />Wadge Pond (002), Pecoco Pond, Pond 003, and Pond 004 are permitted and approved as permanent ponds. Fish <br />were observed in the Wadge Ponds during the inspection of the site. No problems were noted with regard to the <br />presence of wildlife during the inspection. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 9 <br />