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BOWIE N0.2 MINE <br />Permit No. C-96-083 <br />Midterm Review <br />This is the midterm review findings document for the Bowie No. 2 Mine. The midterm review is <br />required under Rule 2.08.3 to be performed not later than the middle of each five yeaz pernut term. <br />Through this review, the Division can require reasonable modifications to the permit in order that the <br />permit application complies with the regulations. Rule 3.02.2(4) requires that the amount of the <br />reclamation liability bond be reviewed during the midterm and adjusted, if necessary. <br />This findings document is divided into four sections. Section I describes the history of the mine. An <br />account of the permitting and enforcement actions, including permit revisions, stipulations and <br />enforcement actions is contained in Section II. The reclamation liability bond information is in Section <br />III. The fmal section contains specific questions or comments that azose in the review of the permit <br />application. <br />Section I -Mine History <br />The Bowie No. 2 Mine is an underground coal mine located about five (5) miles northeast of Paonia, <br />Colorado, adjacent to State Highway 133 and neaz the old Bowie townsite. The permittee is Bowie <br />Resources Limited (BRL). As of the date of this midterm review, the permit azea includes 5124.6 <br />acres, of which 2473.3 surface acres aze privately owned and 2651.3 surface acres aze federally owned. <br />The coal to be mined is federal and private. The mineral ownership is 3167.3 acres of federal and <br />1957.3 acres of private. The disturbed acreage amounts to 224.3 acres while the affected azea is 3099 <br />acres.. The mine permit azea is located on federal and private lands within Delta County, Colorado. The <br />Bowie No. 2 Mine is designated as a federal mine for the purposes of permit and inspection regulation. <br />The original permit was issued on Apri14, 1997 and construction of the mine site began in mid 1997. <br />The current production rate is about 5 million tons per yeaz, although the mine has approval for a <br />maximum annual production of 6 million tons per yeaz. <br />The pernvttee has been Bowie Resources Limited since the beginning of the permitting process. The <br />original operator was Bruin Mining Company. Through Minor Revision No. 2, Sherpa Paonia, Inc. <br />became the operator. With the approval of Minor Revision No. 6, the operator was changed to Bowie <br />Resources Limited. On September 28, 2004, the Division proposed a decision to approve with <br />stipulations Succession of Operator No. 2, whereby the permit will be transferred from Bowie <br />Resources Limited to Bowie Resources LLC. <br />The mine extracts coal from the D-2 coal seam using the longwall method. The operator is also <br />performing development mining in the B-2 coal seam for future longwall operations in that coal seam <br />once longwall mining is complete in the D-2 coal seam. The construction of the B Seam mine portals, <br />