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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Basil Bear <br />Bowie Resources, LLC <br />P.O. Box 483 <br />Paonia, CO 81428 <br />January 6, 2019 <br />Re: Bowie No. 2 Mine, Third Quarter 2018, and Fourth Quarter Sediment Pond Inspection Review <br />Dear Mr. Bear: <br />The Colorado Division of Reclamation, Mining and Safety (CDRMS) received Bowie Resources, LLC's <br />third quarter 2018 sediment pond inspection reports on October 16, 2018. Fourth quarter 2018 sediment <br />pond inspection reports were received on January 8, 2019. The Division finds the above reference report <br />to be in compliance with the following CDRMS regulation. <br />4.05.9(17) — Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) — A copy of the report shall be submitted to the Division on a quarterly basis. <br />4.05.9(15)(a -e): The report addresses the required observations required by this Rule. <br />The six sediment ponds were inspected on September 20, 2018 for third quarter and on October 15, 2018 <br />for fourth quarter. The Colorado Division of Reclamation, Mining and Safety (CDRMS) finds the above <br />reference report to be in compliance with the following CDRMS Regulations, for Sediment Ponds B, C, D, <br />F, J, and K. The ponds were dry, or contained shallow puddles of water at the time of the third quarter <br />inspection, with no ponds discharging. None of the ponds were discharging during the fourth quarter <br />inspection. All ponds held shallow pools of water well below the discharge elevations. All ponds <br />maintained 80% or more available sediment storage during the fourth quarter inspection. No structural, <br />erosional, or spillway concerns were noted for any of the ponds. <br />Based on the third quarter and fourth quarter sediment pond inspection reports, it appears that the <br />sediment ponds were functioning as designed at the time of the inspection. <br />Sincerely, <br />Janet Binns <br />Environmental Protection Specialist III <br />CC: Tamme Bishop, J.E. Stover and Associates <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. Hickenlooper, Governor I Robert W. Randall, Executive Director I Virginia Brannon, Director <br />