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April 21, 2015 C- 1996 - 083 /Bowie No. 2 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 />N - Backfill & Grading <br />N - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />N - 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 />Y - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />NA -Other <br />NA - Special Categories Of Mining <br />R - Processing Waste <br />N -Topsoil <br />COMMENTS <br />This was a Complete Coal Inspection of the Bowie No. 2 Mine conducted by Jason Musick of the Colorado <br />Division of Reclamation, Mining, and Safety. Bill Bear of Bowie Resources, LLC (BRL) accompanied the <br />inspection and Tamme Bishop of JE Stover & Associates was present during the inspection. Weather was clear <br />and theground conditions were wet and muddy. <br />The Bowie No. 2 Mine is an active underground mine. BRL was in the process of conductiong a move of the <br />longwall miner from the 16B Panel to the 17B Panel, with an expected completion time to be approximately May <br />2, 2015. <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 />Ponds B, C, D, F, and J were observed during the inspection. No ponds were discharging or being pumped at the <br />time of the inspection. Pond embankments were stable with good vegetation growth and no evidence of instability <br />or damage. Cleaned out material and used curtain was noted at Pond C on the west side of the pond during the <br />March 2015 inspection, this material has been cleared. Sediment deltas were observed at the inlets of Ponds B and <br />F. Evidence of the initiation of the cleaning of Pond F was observed on the east side inlet of the Pond. <br />Number of Partial Inspection this Fiscal Year: 13 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 7 <br />