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December 11, 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 />N - Air Resource Protection <br />R -Roads <br />N - Availability of Records <br />N - 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 />Y - Support Facilities On -site <br />R - Hydrologic Balance <br />Y -Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />N -Other <br />NA - Special Categories Of Mining <br />NA - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Peabody Sage Creek Mine conducted by Jason Musick of CDRMS. Scott <br />Cowman and Jeri Hunt of Peabody Energy accompanied the inspection. Snow was falling at the time of the <br />inspection and —10 - 12 inches of showcover was throughout the mine site. Extraction of coal continues to be idle <br />with only permitted activities ongoing. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4, Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The embankments of the Pecoco Pond, Pond 003, the Upper Sump, and the Lower Sump were snow covered at the <br />time of the inspection with no problems noted. Ponds were frozen with the exception of Pond 002 which was <br />partially frozen at the time of the inspection. <br />Ditches and culverts throughout the facilities area were snow covered with no problems noted. <br />GENERAL MINE PLAN COMPLANCE: <br />Ongoing activities included the construction and installation of the million gallon water tank, the construction and <br />installation of the compressor building and the installation of the propane tank pad. Coal extraction operations <br />remain idle at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 5 <br />