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August 23, 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 />Y - Air Resource Protection <br />N - Availability of Records <br />NA - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />N -Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />R -Processing Waste <br />R - Roads <br />R - Reclamation Success <br />R - 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 was a Partial Coal Inspection of the Bowie No. 2 Mine conducted by Jason Musick of the Colorado Division <br />of Reclamation, Mining, and Safety. Bill Bear of Bowie Resources, LLC (BRL) accompanied the entire <br />inspection. Weather was cloudy and the mine site was wet 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 stated that it was thier intention to put the Bowie No. 2 Mine in Temporary Cessation. Pond cleanings <br />were being placed at Gob #3 and Gob Pile #2. Soil material was being placed and graded on the west side of Gob <br />#2. No trains were observed loading or unloading at the time of the inspection; however, Bill Bear of BRL <br />indicated that two coal trains were expected the evening of 8/23, the date of the inspection. Currently, revision <br />SL -1 is in public comment period and MR -187, TR -108, and RN -4 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. <br />In addition to the partial inspection of C-1996-083. The Division conducted an inspection of the remaining <br />reclamation tasks associated with NOI X-2005-217-10 and if the remaining tasks are eligable for bond release. <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, 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 was unreadable due to the low level of water in the pond at the time of the inspection. All <br />ponds were holding water at the time of the inspection. No ponds have discharged in 2016 with the exception of <br />February. Pond C has been cleaned since the July 2016 inspection. Ponds F and J were in the process of cleaning <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 5 <br />