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COLORADO <br />i Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />October 10, 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-1981-438 <br />3rd Quarter 2017 Pond Inspection Report Review <br />Dear Mr. Bear, <br />The Colorado Division of Reclamation, Mining and Safety (the Division) received the 3'd <br />Quarter 2017 Pond Inspection Report on October 6, 2017. The Division has completed <br />its review and found the report to be in compliance with the following Rules: <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 September <br />29, 2017. The report indicates that there were no issues. The field inspections by the Division <br />reflect the information in the report by BRL. During August of 2017, six ponds at the Bowie No. <br />1 Mine were reclaimed. Binwall Ponds 1 through 4, the Gob Pile Pond and the ROM Pile Pond <br />were backfilled and regraded. These reclaimed sites were stable. There are four ponds that <br />remain at the Bowie No 1 Mine: the Loadout Pond, the Highway Pond, the WM WS -1 Pond and <br />WM WS -2 pond. The four ponds were dry and had no indications of instability or erosion. <br />This concludes the Division's review of the Yd Quarter 2017 Pond Inspection Report. If you <br />have any questions, feel free to contact me at (303)-866-3567 x 8144. <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickentooper, Governor i Robert W. Randall, Executive Director Virginia Brannon, Director <br />