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November 14, 2012 C- 2009 - 087 /Peabody Sage Creek Mine JDM <br />Ditches and culverts observed throughout the site were in excellent condition and functioning as designed. <br />Recently completed drainage reconstruction of Lower PM -6, Lower -End PM -6, Lower PM -4, PM -4 Overflow, <br />and SCM -IA were observed and were stable with no roblems noted. <br />Lower PM -6 <br />Lower End PM -6 <br />t <br />PM -4 <br />PM -4 <br />During the October 25, 2012 Inspection, the following maintenance items were noted: <br />- The septic system access road over the shop diversion ditch displayed erosion off the road and onto the box <br />culvert. This area has been addressed to ensure that the run -off from the pad reaches the shop diversion ditch. <br />- Ditch FA -D 1 will need to be reestablished to ensure proper drainage and alleviate the runoff from being <br />redirected over the road. Ditch FA -D 1 has been reestablished and no problems were noted. <br />- A large amount of material was in place at the northern most portion of RC -D3. This material has been cleared <br />and the culvert installed based on the original plan has been removed. <br />All disturbances have been seeded. <br />GENERAL MINE PLAN COMPLANCE: <br />The Peabody Sage Creek Mine is currently not extracting coal. The site is continuing development activities and <br />conducting ongoing mining activities on site. <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 6 of 9 <br />