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July 5, 2016 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 />N - Availability of Records <br />NA - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />Y -Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA - Other <br />R - Processing Waste <br />Y - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />NA - Slides and Other Damage <br />Y - Support Facilities On-site <br />Y - Signs and Markers <br />NA - Support Facilities Not On-site <br />NA - Special Categories Of Mining <br />N -Topsoil <br />COMMENTS <br />This report reflects a Coal Partial 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 entire <br />inspection. Weather was clear and the mine site was dry at the time of the inspection. <br />The Bowie No. 2 Mine was put in an inactive/idle state as of February 26, 2016. All coal production has ceased <br />and the remaining coal stockpiles are being transported out via rail. In a letter to the Division dated February 29, <br />2016, BRL was placed in Temporary Cessation on May 16th, 2016. Coal processing waste was being stockpiled <br />at Gob #3 and grading operations were being conducted at Gob Pile #2. No trains were observed loading or <br />unloading at the time of the inspection. Currently, revisions MR -187 and SL -1 are under review by the Division. <br />BRL continues to address all maintenence items in a timely and through manner. All maintence items have been <br />addressed and no additional items were identified during this inspection. This partial inspection focused on <br />activities and approved actions at the processing waste piles , Gob piles #1, #2, #3, and #4. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Ponds B, C, D, F, K, and J were observed during the inspection. No ponds were discharging at the time of the <br />inspection. Pond embankments were stable with good vegetation growth and no evidence of instability or damage. <br />The Pond F marker indicated a level of 4.2 at the time of the inspection. All ponds were holding water at the time <br />of the inspection, with the exception of Pond K. No ponds have discharged in 2016 with the exception of <br />February. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 6 <br />