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Bowie Resources, LLC <br />Bowie No. 2 Mine <br />2014 Annual Hydrology Report <br />Introduction <br />The Bowie No. 2 Mine was built and opened by Bowie Resources during the spring and <br />summer months of 1997 with coal production/development beginning on August 15, <br />1997. This room and pillar operation began developing a main and submain system of <br />underground entries to provide the ventilation, haulage and coal conveyor support for <br />years to come. These entries are driven carefully on projections, held to minimum <br />widths with larger than normal coal pillars left in place to assure adequate support for <br />the life of the mine. The mine began longwall production during November 1999. <br />The following 2014 Annual Hydrology Report describes the hydrologic monitoring for <br />surface and ground water within the permit and adjacent area of the Bowie No. 2 Mine <br />and presents baseline data for the natural mine plan progression. <br />In this report, springs, ponds and streams (including ditches, rivers, and canals) are <br />considered surface water. Alluvial wells and drill holes are sampled and analyzed as <br />ground water. Please refer to the permit application for a discussion of the methods <br />employed during the gathering of field parameters. Permit Map-09 (attached as an <br />exhibit in this report) indicates the location of all monitoring points referred to in this <br />report. <br />At the request of the Division, we have included baseline data for all Springs, Streams, <br />Drill Holes and Alluvial Wells on the annual tabulation figures. Previously, parameters <br />not tested and tested but found below the Method Detection Limit (MDL) were left blank. <br />Blank cells represent a "not tested" condition, while a "<MDL" notation is made for the <br />condition where a parameter falls below the Method Detection Limit. Additional <br />requests from the Division during the approval process for PR-04 have added other <br />improvements to the tables, including minimum/maximum/average values for the <br />baseline period and minimum/maximum/average values for the operational influenced <br />period of the monitoring point. <br />Table 1 (immediately following this narrative) defines the monitoring points by type and <br />sample frequency, field parameter sampling schedule and laboratory parameter <br />sampling schedule. <br />Table 2 contains a listing of the laboratory parameters for surface and ground water to <br />be tested in accordance with the mining permit application. Laboratory analysis are <br />performed by Accutest Laboratories, Inc., 4036 Youngfield Street, Wheat Ridge, CO <br />80033 and Enviro-Chem Analytical, Inc., 685 West Gunnison Avenue, Grand Junction, <br />CO. <br />2 <br />