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J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7T" STREEET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX: (970) 242 -7908 <br />MINE ENGINEERING CIVIL ENGINEERING <br />MINE RECLAMATION CONST. MANAGEMENT <br />PARTIAL BOND RELEASE LETTER <br />September 15, 2014 <br />Re: Bowie Resources, LLC <br />P.O. Box 483 <br />Paonia, CO 81428 <br />Dear People <br />Bowie Resources LLC, is the successor in interest to Cyprus Orchard Valley Coal Company and <br />Colorado Westmoreland Inc's. responsibilities under Division of Reclamation, Mining and Safety, <br />Permit No. C- 1981 -038. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine must be <br />bonded for the estimated reclamation cost. Now that a portion of the reclamation work has been <br />performed, Bowie Resources LLC has formerly requested a partial bond release from the Division of <br />Reclamation, Mining and Safety. Bowie Resources LLC has a posted bond of $5,761,290 and a <br />bond liability of $3,439,563 and has requested that about $250,000 of that amount be released. In <br />accordance with the Division's Rule 3.03.2(1), Bowie Resources LLC is required to send written <br />notice of its partial bond release request to adjacent land owners, surface owners and various local <br />governing bodies. <br />The area for which partial bond release is being requested is at the Bowie No. 1, East Mine and <br />West Mines, located in Delta County, approximately four (4) miles north of Paonia, CO. <br />During the period 2000 through 2002, a portion of the West mine was returned to approximate <br />original contours and seeded. During 2008, the Timber Storage Area located at the East mine was <br />returned to AOC and seeded. <br />During the ensuing years the vegetation has flourished. Based on a vegetation evaluation <br />performed during June 2013, a demonstration was made that untreated drainage from the reclaimed <br />areas do not contribute additional suspended solids above natural conditions. The vegetation study <br />concludes the area sampled appears to be more than capable of supporting post- mining land uses. <br />Sincerely, <br />J. E. Stav-2r <br />J. E. Stover, P.E. <br />Consulting Engineer <br />