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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 />February 7, 2013 <br />Dennis Jones <br />Peabody Sage Creek Mining, LLC. <br />PO Box 250 <br />Hayden, CO 81639 <br />RE: Peabody Sage Creek Mining, LLC., Peabody Sage Creek Mine (C- 2009 -087) <br />2012 Annual Impoundment Inspection Report <br />Dear Mr. Jones, <br />COLORADO <br />ID IV 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) have found the above referenced report to <br />be in compliance with the following CDRMS regulation: <br />4.05.9(14a) — Inspections shall be made at least yearly until removal of the structure or release of the <br />performance bond. <br />4.05.9(14b) — Provide to the Division a certified report that the impoundment have been constructed <br />and/or maintained as designed, and in accordance with the approved plan and applicable regulations. <br />The above referenced report provides annual certifications for sediment ponds 002, 003, 004, PeCoCo, Upper <br />Sump, Lower Sump, Portal Sump (North), Portal Sump (South); the truck wash settling pond and spill control <br />pond 42; Stock tanks T -3, T -4, T -8, T -16, T -17, T -20, T -26, T -28, T -29, T -30, T -31, T -32, and T -33. <br />It is noted that no maintenance item were conducted or identified and all impoundments were functioning as <br />designed at the time of the inspection. <br />Sediment surveys were completed on the Upper Sump, Lower Sump during 2012. <br />If you have any questions feel free to contact me. (303) 866 -3567 ex 8134 <br />Sincerely, <br />R <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 />