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December 30, 2015 <br />Jim Stover <br />COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />J.E. Stover Et Associates, Inc. <br />2352 North 7th Street, Unit B <br />Grand Junction, CO 81501 <br />RE: Bowie Resources, LLC, Bowie No. 2 Mine (Permit C-1996-083) <br />Bond Release Application No. 1 (SL -1) <br />Adequacy Review Letter <br />Dear Mr. Stover: <br />The Colorado Division of Reclamation, Mining, and Safety (Division) received Peabody Sage Creek Mining, <br />LLC's (BRL) application for a partial Phase I, II, and III Bond Release (SL -1) on June 17, 2015. The <br />application was determined to be complete on July 15, 2015. The Division has completed its prelimanary <br />adequacy review of the proposed bond release based on a review of the proposed bond release <br />application, past Division decisions, and the on -the -ground in spection of the site. <br />The initial bond release application requested bond release on 23 drill sites and 9 roads representing 17.1 <br />acres eligible for Phase I bond release. Also requested for Phase I are 4.0 acres regraded along the Pitkin <br />Mesa Pipeline and 7.4 acres on gob pile #1 and #2. 36.2 acres of drill sites and 12.2 acres of light use <br />roads were requested for Phase I and II release. The Hubbard Creek vent shaft site representing 1.0 acres <br />was also requested for Phase I and II release. There were 184 drill holes and 2 shafts that have been <br />permanently abandonded and sealed that were requested for Phase I, II, and III bond release. The <br />Freeman Gulch vent shaft site representing 1.0 acres was also requested for Phase I, II, and III bond <br />release. In a letter dated June 30, 2015, BRL requested to remove six srill sites and associated light use <br />roads from the bond release application. <br />Based on a review by the Division the status of the requested bond release sites and associated acres are <br />noted below. <br />Phase I only Proposed <br />Phase <br />Requested <br />Acres <br />(Pad) <br />Acres <br />(Road) <br />Comment <br />2014 -SS -B <br />1 <br />1.0 <br />NA <br />Weed Management for oxeye daisy. <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. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />