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'f Huddleston -Berry <br />j, Engineering & Testing, 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. 2 <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 />Info@huddlestonberry.com <br />April 13, 2016 <br />Project#01349-0001 <br />Reference: Summary of Instrumentation Monitoring, 4rh Quarter 2015, Bowie Coal Waste <br />Disposal Area No. 2, Paonia, Colorado by Huddleston -Berry Engineering & <br />Testing, LLC for Bowie Resources, LLC, January 11, 2016. <br />Stability Evaluation, Technical Revision #85, Gob Pile #2 Drying Area, Bowie <br />No. 2 Mine by Huddleston -Berry Engineering & Testing, LLC for Bowie <br />Resources, LLC, June 3, 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 and inclinometers at Coal Waste Disposal Area No. 2 <br />(CWDA No. 2) at the Bowie mine near Paonia, Colorado. The intent of the monitoring was to <br />detect significant changes in the pore water pressures or significant displacements within the coal <br />waste which may impact the stability of the waste pile. <br />Inclinometers <br />In 2005, three inclinometers, designated BG05-04, BG05-05, and BG05-07, were installed at <br />CWDA No. 2 through the coal refuse and into the native foundation soils. The inclinometers <br />have been monitored quarterly since August 2005. The 1St Quarter 2016 monitoring was <br />completed by DOWL on March 21, 2016. The monitoring report prepared by DOWL includes a <br />site plan showing the locations of the inclinometers and cumulative displacement curves relative <br />to the baseline readings in 2005. Axis "A" reflects deformation with depth in the direction of <br />anticipated movement perpendicular to the face of the gob. Axis `B" reflects deformation with <br />depth parallel to the face of the gob. <br />