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November 14, 2012 C- 2009 - 087 /Peabody Sage Creek Mine JDM <br />Portal Area <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 accessible and stable at <br />the inspection. Roadside culverts and ditches were stable and in compliance at the time of the inspection. The <br />access road to Pond 004 has been graded with water bars constructed. <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 11 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 were stable and snow - covered with no problems noted. <br />SUPPORT FACILITIES - Rule 4.04: <br />Support facilities on -site were stable with no problems noted. During the October 25, 2012 inspection, the <br />following maintenance items were noted: <br />- A large amount of soil material was observed at the septic system area. This material will need to be removed or <br />spread and seeded. The material noted has been spread over the septic area and seeded. <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 boundary <br />markers will need to be placed around the revised disturbance boundary area. <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 7 of 9 <br />