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IIL COMMENTS -COMPLIANCE Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement actions taken during the inspection and the facts or evidence supporting the enforcement action. This was a partial inspection conducted by Joe Dudash and Sandy Brown of the Colorado DBMS. A separate partial Phase One bond release inspection was conducted concurrently with this inspection at the Vain loadout. Basil Bear and Jim Stover, Bowie Resources LLC's consultant, represented the operator and were present for the inspection only at the loadout. A separate inspection report was generated for the bond release inspection. Unit Train Loadout The sediment control system was functioning well at this site. The central diversion channels and culverts were operational. The west side collection ditch had sufficient capacity. The culvert underneath the hacks leading to the sediment pond was recently repaired. The sediment pond was dry and the pond's upland diversion ditch and culvert were operational. The operator built a berm at the top of the road that leads down to the orchard. There was quite a lot of mine equipment on site. The crushed and sized concrete from the silos is slowly being Vansported over to the Bowie No. 2 Mine. The last quarter mile of railroad Vack and ballast has been removed from the spur line. The remaining dirt corridor of this former section of track needs to be seeded this fall. The silt fence also needs repair along this corridor. East Mine The front gate to the site was locked and the mine ID sign was up on the gate. The paved haul road was in good condition. The dirt access roads to the portal bench and the utility bench were passable. The road ditches, however, could use some cleaning. The upland diversion ditch on the utility bench was well vegetated and had sufficient capacity. The two topsoil stockpiles on the utility bench had good vegetative cover and the topsoil stockpile signs were up. Only piles of broken up concrete remain on that bench. There were a couple of slabs of concrete and two small concrete building shells that still need to be broken up on the portal bench. Several piles of broken up concrete and asphalt were also on the portal bench. There was a musty smell near the west backfilled portal and to the area just west of it, neaz an area where the rocks in the highwall are cracked. It was not known if the musty smell was coming from the underground workings. The concrete pad on the warehouse level bench needs to be broken up, as does the surge bin base. Only a few pieces of the substation structure above the warehouse bench remain. Also, some mine equipment and one empty waste oil tank remain on the crusher/screener bench. An excavator was still on site where the power company had to dig out and cut a buried power line. There were no new additions to the west ridge waste pile. The waste pile was well vegetated and there were no signs of slope or erosional instability. There were no signs of instability with any of the cut and fill slopes of the east mine benches. Surface disturbance markers were up around the disturbed area. West Mine The backfilled and graded west mine had a good vegetative cover. The backfilled slopes are holding up well. There were no signs of slope instability or erosional problems. The two sediment ponds were dry. The mine ID sign was up, as were the surface disturbance markers. c:/word bowie 1 /insp0907