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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Departrnen[ of Natural Resources <br />1313 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />fAX: (303) 832.810b <br />March 14, 2006 <br />John Matheson <br />Terror Ditch and Reservoir Company <br />1550 4175 Drive <br />Paonia, CO 81428 <br />Re: Bowie No. 2 Mine (Permit No. C-1996-083) <br />Permit Revision Application No. 10 (PR-10) <br />Revise B-Seam Mine Plan. Expand Mine Plan to the North <br />Dear Mr. Matheson: <br />RADO <br />ON OF <br />RALS <br />GEOLOGY <br />RECLA NATION•NINING <br />SAEETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive DireROr <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Minerals and Geology hereby issues notice, in accordance with Title 34, Article 33, Section 118, <br />Paragraph 3, of the Colorado Revised Statutes, that on March 13, 2006, an application to revise coal mining <br />operations at the Bowie No. 2 Mine was considered complete for the purposes of filing. All review and comment <br />periods as provided in the Act and the Regulations initiate from this date of filing. <br />[n Permit Revision No. 10 (PR-10), Bowie Resources LLC (BRL) is proposing to revise its approved mine plan by <br />extending mining of the B coal seam to the north. The mine plan revision involves slightly lengthening one <br />approved longwall panel, and adding three new longwall panels and their associated main entries. The main entries <br />will be room and pillaz mined and will lie underneath a section of Hubbard Creek. The proposed mine plan will <br />bring mining to within 2500 feet and mining-induced subsidence to within about 1500 feet of the Bruce Pazk Dam <br />(Terror Creek Reservoir). BRL is also proposing to undermine and subside Dove Gulch and Dove Cave, although <br />BRL has a design to protect the cave. The operator has provided demonstrations, designs and a seismic monitoring <br />program in PR-10 in support of their proposals. <br />The proposed mining is located in Sections 33 and 34 of Township 12 South, Range 91 West. The management of <br />the surface land is through the USDA-Forest Service while management of the coal is through the Bureau of Land <br />Management. Access to the coal is through Federal Coal Lease COC-61209. Other than the effects from mining- <br />induced subsidence and seismicity, there is no new surface disturbance proposed in PR-10. Therefore, BRL is not <br />proposing any additional reclamation bond. In PR-10 there is no proposed increase in the rate of coal production, <br />no proposed increase in water usage at the mine and no proposed change to the permit boundary. Attached is a <br />copy of a location map. <br />The underground coal mining operation is on land located approximately 5 miles Northeast of Paonia, Colorado. <br />The permit area is further described as follows: <br />Portions of Sections 2, 3, 4, 5, 8, 9, 1Q 1 1, 14, I5, I6, and 22, Township 13 South, Range 91 West ofthe 6th P.M. <br />Portions of Sections 33 and 34, Township 12 South, Range 91 West of the 6th P.M. <br />The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Bowie. <br />t3(fice of Office of Colorado <br />Mined Wnd Reclamation Active and Inactive Mines Geological Survey <br />