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COLORADO <br />AVDivision of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />June 14, 2017 <br />Basil Bear <br />Bowie Resource, LLC <br />P.O. Box 1488 <br />Paonia, CO 81428 <br />RE: Bowie No. 1 Mine, Permit No. C-1981-038 <br />I" Quarter 2017 Pond Inspection Report and Yearly Impoundment <br />Inspection Report Reviews <br />Dear Mr. Bear, <br />The Colorado Division of Reclamation, Mining and Safety (the Division) received the 1St <br />Quarter 2017 Pond Inspection Report and 2017 Impoundment Yearly Inspection Report <br />on April 4, 2017. The Division has completed its review and found the reports to be in <br />compliance with the following Rules: <br />181 Quarter Pond Inspection Report: <br />4.05.9(17) — All Impoundments are inspected quarterly, by a qualified person designated by the <br />operator, for the appearance of structural weakness and other hazardous conditions. The reports <br />are retained at the Bowie No. 2 Mine Office, and copies of the reports are submitted to the <br />Division on a quarterly basis. <br />The inspections of the ponds were conducted by Bowie Resources, LLC (BRL) on March 23, <br />March 24 and March 28, 2017. The report indicates that there were no issues. The field <br />inspections by the Division reflect the information in the report by BRL. <br />Impoundment Yearly Inspection Report: <br />4.05.9(14) All impoundments were inspected by a qualified registered professional engineer or <br />other qualified professional specialist under the direction of a professional engineer. The <br />professional engineer or specialist shall be experienced in the construction of impoundments. <br />The yearly inspection of the impoundments at the Bowie No. 1 Mine and loadout were <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 203.866.35671" 303.832.8106 http://mining.state.co.us <br />John W. Hickentooper, Governor 1 Robert W. Randall, Executive Director 1 Virginia Brannon, Director <br />