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BOWIE RESOURCES, LLC <br />BOWIE NO. 1 MINE <br />IMPOUNDMENT YEARLY INSPECTION <br />In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly <br />to determine if the impoundment has been maintained as designed, and in accordance <br />with the approved plan and the applicable regulations. This yearly inspection is for the <br />impoundments located at the Bowie No. 1 Mine. <br />On March 21, 2007 I performed the required yearly inspection. I, J. E. Stover, have a <br />wide variety of experience in the design and construction of earth fill embankments. <br />Nothing was observed during the inspection that would indicate the ponds have a <br />potential for failure. There was no appearance of erosion, instability, structural <br />weakness or other hazardous conditions. There are no required monitoring procedures <br />or instrumentation other than quarterly and yearly inspections. There are no aspects <br />which might affect stability and there is no required maintenance. <br />The condition of the impoundments during the inspection is listed below: <br />Pond Condition Water Elev. <br />Pond 1 Damp with snow on north facing slope N/A <br />Pond 2 Pool of water =6660 <br />Pond 3 Damp with a little snow on north facing slope N/A <br />Pond 4 Dry to Damp N/A <br />Refuse Damp/Muddy N/A <br />Timber Pool of water 1' below primary spillway 6590 <br />West Mine W-1 Water 1.5' feet below level of primary spillway 7062.7 <br />West Mine W-2 3" Standing Water 7090.25 <br />Coal Stockpile SH-133 Pool of water 5728 <br />Loadout Dry to Damp N/A <br />1- <br />