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HudffieSton-Beat' <br />` Engineering & Tenting, LLC <br />Bowie Resources, LLC <br />43659 Bowie Road <br />Paonia, Colorado 81428 <br />Attention: Mr. Bill Bear <br />Subject: Summary of Instrumentation Monitoring <br />1St Quarter 2016 <br />Bowie Coal Waste Disposal Area No. 3 <br />Paonia, Colorado <br />640 White Avenue, Unit B <br />Grand Junction, Colorado 81501 <br />Phone: 970-255-8005 <br />Fax: 970-255-6818 <br />Infoghuddlestonberry.com <br />April 13, 2016 <br />Project#01349-0001 <br />Reference: Summary of Instrumentation Monitoring, 4th Quarter 2015, Bowie Coal Waste <br />Disposal Area No. 3, Paonia, Colorado by Huddleston -Berry Engineering & <br />Testing, LLC for Bowie Resources, LLC, January 11, 2016. <br />Stability Evaluation, Gob Pile #3, Bowie No. 2 Mine by Huddleston -Berry <br />Engineering & Testing, LLC for Bowie Resources, LLC, July 15, 2014. <br />Dear Mr. Bear, <br />At the request of the Colorado Division of Reclamation, Mining and Safety (DRMS), <br />Huddleston -Berry Engineering & Testing, LLC (HBET) prepared this letter regarding quarterly <br />monitoring of vibrating wire piezometers at Coal Waste Disposal Area No. 3 (CWDA No. 3) at <br />the Bowie mine near Paonia, Colorado. The intent of the monitoring was to detect significant <br />changes in the pore water pressures within the coal waste which may impact the stability of the <br />waste pile. <br />Vibrating Wire Piezometers <br />Five vibrating wire piezometers were installed in CWDA No. 3 in October 2014. The <br />piezometers were installed at three locations within the footprint of the gob pile. Monitoring of <br />the functioning piezometers was completed by DOWL on March 21, 2016. The attached <br />monitoring report prepared by DOWL includes the piezometer monitoring data and the data is <br />summarized in the following table. <br />VWP ID <br />Initial Pore <br />Pressure <br />10/31/14 <br />(psi) <br />12/19/15 Pore. <br />Pressure <br />(psi) <br />03/21/16 Pore <br />Pressure <br />(psi) <br />Difference Since <br />Installation <br />(psi) <br />Difference Since <br />Last Reading <br />(psi) <br />VWP-A Deep <br />10.4 <br />7.0 <br />4.4 <br />-6.0 <br />-2.6 <br />VWP-A Shallow <br />4.7 <br />4.6 <br />4.5 <br />-0.2 <br />-0.1 <br />VWP-B Deep <br />0.2 <br />0.1 <br />-0.1 <br />-0.3 <br />-0.2 <br />VWP-B Shallow <br />13.9 <br />14.7 <br />13.7 <br />-0.2 <br />-1.0 <br />VWP-D <br />7.1 <br />7.0 <br />6.3 <br />-0.8 <br />-0.7 <br />