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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />17 March 2015 <br />Basil R. Bear <br />Bowie Resources, LLC <br />P.O. Box 1488 <br />Paonia, Colorado 81428 <br />Re: Bowie No. 1 Mine (Permit No. C-1981-038) <br />Surety Release No. 5 (SL -05) — Partial Phase I and Phase II <br />Second Adequacy Review <br />Dear Mr. Bear: <br />The Division issued a preliminary adequacy review of the SL -05 application on January 12, <br />2015. A response package was received on January 26, 2015 from J.E. Stover and Associates, <br />Inc. on behalf of Bowie Resources, LLC (BRL). <br />The Division's initial adequacy items are repeated below, updated to reflect the current status of <br />each. <br />1. DRMS 01/12: For the Phase I bond release area, the size is represented as 0.45 acres in <br />Item 7 of the cover letter and on Figure 1. During the inspection, we noted that the area <br />appeared to be larger than 0.45 acres — perhaps double that size. Please update the area <br />for which Phase I release is being requested, as appropriate. <br />DRMS 03/16: The application text and Figure 1 were revised to reflect that the Phase I <br />area (West Mine Ventilation Shaft) is 1.0 acres in size. This item has been satisfactorily <br />addressed. <br />2. DRMS 01/12: The success criteria in the Revegetation Evaluation Report — December <br />2013 by Cedar Creek Associates presented information that was contrary to that in the <br />approved permit. The wording for the standard needs to be corrected in the application <br />report on pages 6, 7, 12 and 14. <br />DRMS 03/16: Revised pages 6, 7, 12 and 14 for the Revegetation Evaluation Report <br />were submitted, as requested. This item has been satisfactorily addressed. <br />3. DRMS 01/12: The success criteria for Phase III bond release of the East and West <br />mining areas listed on page 6 and 7 of the Revegetation Evaluation Report- 2013 by <br />Cedar Creek Associates are not consistent with the permit. Although this application is <br />-cod <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickentooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />'� f876 <br />