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December 6, 2002 <br />Bowie Resources LTD <br />Attn: Mr. Bill Bear <br />P.O. Box 483 <br />Paonia, CO 81426 <br />Bowie No. 2 Mine <br />Complete, oversight inspection <br />December 4, 2002 <br />Participants: <br />Bill Bear, Bowie Resources, LTD (BRL) <br />Joe Dudash, Colorado Division of Minerals and Geology (DMG) <br />Henry Austin, Office of Surface Mining (OSM) <br />I participated in a complete, oversight inspection of the Bowie No. 2 Mine with the above on <br />December 4, 2002. The joint, DMG / OSM Oversight Team selected this mine for a complete <br />inspection during evaluation year 2003. The primary focus of this inspection was an evaluation <br />of off-site impacts. Weather conditions were cold and clear. Ground conditions were dry <br />throughout the mine site, except where the underground sump was being dewatered by pumping <br />to the surface and diverted to sediment pond b. The inspection did not reveal any off-site impacts <br />on or adjacent to the disturbance areas inspected. <br />Prior to the inspection, I reviewed permitting and inspection records in the OSM / WRCC offices <br />including: DMG inspection reports, 1/8/02 USDA/USFS-EA/FONSI for drilling coal exploration <br />and gob-vent boreholes, 5/9/02 DMG permit renewal no. 1 proposed decision and findings of <br />compliance document for the no. 2 mine, 5/30/02 DMG / TR-23 to drill 5 nethane de-gas and 4 <br />exploration boreholes and DMG June and July approvals for this TR, 9/6/02 DMG approval of <br />TR-19 to transfer the train loadout and coal stockpile facility from the Bowie No. 1 mine to the <br />mine no. 2 permit area (this transfer will not be final until the additional bond amount required <br />by the transfer is effective), SAE section of the permit application, and variances approved for <br />roads and dwellings within 100 feet and 300 feet respectively of the mine disturbance areas. <br />Mr. Dudash conducted a thorough permitting and environmental monitoring records review at <br />the mine no. 2 office to begin our inspection including: DMG permit term is from 4/4/02 to <br />4/4/07, we briefly discussed the November 13, 2002, chapter 11 bankruptcy filing by Horizon <br />Natural Resources, Inc., a parent company of Bowie Resources Limited and the current <br />operational delays caused by this filing. DMG has requested updated ownership and control <br />information from the permittee's consultant, J.E. Stover and Associates of Grand Junction, CO. <br />