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J. E. STOVER & ASSOCIATES, INC. <br />P.O. BOX 60340 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />PARTIAL BOND RELEASE LETTER <br />June 26, 2007 <br />Re: Bowie Resources, LLC <br />P.O. Box 483 <br />Paonia, CO 81428 <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />Bowie Resources LLC, is the successor in interest to Cyprus Orchard Valley Coal <br />Company and Colorado Westmoreland Ines. responsibilities under Division of <br />Reclamation, Mining and Safety, Permit No. C-1981-038. Bowie Resources LLC <br />dismantled and removed most of the structures at the Bowie No. 1 Mine train loadout <br />during the fourth quarter 2006. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine <br />must be bonded for the estimated reclamation cost. Now that a portion of the reclamation <br />work has been performed, Bowie Resources LLC has formerly requested a partial bond <br />release from the Division of Reclamation, Mining and Safety. Bowie Resources LLC has a <br />bond liability of $5,756,607 and has requested that up to $1,200,000 of that amount be <br />released. In accordance with the Division's Rule 3.03.2(1), Bowie Resources LLC is <br />required to send written notice of its partial bond release request to adjacent land owners, <br />surface owners and various local governing bodies. <br />The area for which partial bond release is being requested is at the Bowie No. 1 Mine train <br />loadout facility located in Delta County, approximately four (4) miles north of Paonia, CO. <br />The loadout is located in the S''/2 of Section 29 and the N''/zNW'/<.of Section 32, Township <br />13 South, Range 91 West, 6"' P.M. The truck dump, silos, loadout and associated <br />structures and conveyors have been dismantled and removed from the site. <br />Sincerely, <br />fy~-~~ <br />J. E. Stover, P.E. <br />Consulting Engineer <br />