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BOWIE RESOURCES, LLC BOWIE NO.2 MINE IMPOUNDMENT YEARLY INSPECTION In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly to determine if the impoundment has been maintained as designed, and in accordance with the approved plan and the applicable regulations. This yearly inspection is for the impoundments located at the Bowie No. 2 Mine. On March 16, 2006 I performed the required yearly inspection. I, J. E. Stover, have a wide variety experience in the design and construction of earth fill embankments. Nothing was observed during the inspection that would indicate the ponds have a potential for failure. There was no appearance of erosion, instability, structural weakness or other hazardous conditions. There are no required monitoring procedures or instrumentation other than monthly and yearly inspections. There are no aspects which might affect stability. Pond B had a pool of water about 5-feet below the emergency spillway at approximate elevation of 5947, five feet deep. Because of the water level in the pond, it is not possible to determine the sediment level. It is estimated that Pond B has about 75% of its sediment capacity remaining. Pond B should be dewatered. The water level of Pond C was about 4-feet below the elevation of the emergency spillway at approximate elevation of 5996, 6-feet deep. Because of the water level in the pond, it is not possible to determine the sediment level. It is estimated Pond C has had a 25% sediment build-up since it was cleaned out. Pond C should be dewatered, Pond D had water standing 3.7-feet below the elevation of the emergency spillway at approximate elevation of 5976, 4-feet deep. Because of the water level in the pond, it is not possible to determine the sediment level. It is estimated Pond D has had a 50% sediment build-up since it was cleaned out. Pond D should be dewatered. Pond J was snow covered with no apparent sediment build-up. Pond K had about 6- inches of snow and ice cover at an approximate elevation of 5819.5 with an estimated 10% sediment build-up. Pond F had about 3 foot of standing water at approximate elevation 5947 with an estimated sediment build-up of 10%. Pond C was being dewatered at the time of the inspection.