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November 5, 2014 C- 1996 - 083 /Bowie No. 2 Mine SLB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />R - Air Resource Protection <br />R - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />R - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />Y - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />R - Other <br />NA - Special Categories Of Mining <br />R - Processing Waste <br />N -Topsoil <br />COMMENTS <br />This was a partial inspection of the Bowie No. 2 Mine conducted by Susan Burgmaier of DRMS. Bill Bear of <br />Bowie Resources, LLC (BRL) and Tamme Bishop of J.E. Stover & Associates, Inc. (consultant for BRL) were <br />present during the inspection. Weather conditions were sunny and mid -50 degrees; ground conditions were dry. <br />The area has received 0.3" of rain the weekend prior to the inspection. <br />BRL is currently longwall mining in the B 16 panel. There were five trainloads of coal sceduled to be loaded on <br />November 6, 2014. Refuse material was being hauled to both Gob Pile #2 and #3 during the inspection. Coal <br />from the Elk Creek mine (40,000 tons approved for import under MR -160) was being hauled to the D Portal <br />stockpile. <br />BRL recently announced the loss of its longterm contract to supply coal to the Tennessee Valley Authority (TVA). <br />The loss of the contract resulted in a production cutback and the subsequent layoff of 150 of its 375 person <br />workforce. The mine previously operated two twelve hour shifts seven days per week; the current schedule is two <br />ten hour shifts five days per week. The mine was idled entirely October 29, 2014 through November 2, 2014 to <br />allow BRL to attend to personnel matters. <br />Maintenance items and permitting defects identified in previous inspection reports have all been addressed with <br />exceptions noted below. Outstanding maintenance and permitting should be completed within two weeks of <br />the issuance of this inspection report, unless otherwise noted. <br />AIR RESOURCE PROTECTION— Rule 4.17: <br />Water trucks were applying water to the main haul road and refuse area haul roads. Fugitive dust was being kept <br />to a minimum. <br />HYDROLOGIC BALANCE - Rule 4.05, Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage —Acid and Toxic Materials 4.05.8; <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 14 <br />