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CRAGG SURVEYING <br />Stephen B. Cragg PLS <br />14762 2900 Road <br />Hotchkiss, Colorado 81419 <br />Phone 970-872-2258 <br />Fax 970-872-3358 <br />June 07, 2004 <br />Bowie Resources LLC <br />Bowie No 2 mine <br />Paonia, Co. 81428 <br />Attn. Collin Stewart <br />RE: Bowie No. 2 Mine <br />Subsidence Survey <br />May 2004 <br />A subsidence monitoring survey network has been established by Cragg Surveying for the <br />Bowie Resources, Bowie No. 2 Mine. The survey is based on the existing survey control grid in place <br />around the Bowie No. 2 Mine surface facilities. The points for the subsidence survey network have been <br />established using a Trimble 4800 GPS survey system. This GPS survey has been calibrated to the <br />existing survey control grid and then the survey has been extended to the north to cover the area where <br />the coal has been mined and will be mined in the future. <br />The subsidence survey network was started in May of 1999 with additional points added in August 1999, <br />November 2000, November 2001, November 2002, and November, 2003. The majority of the <br />subsidence monitoring points area # 5 reber, 24 to 30 inches in length, with a 2 inch aluminum survey <br />cap. The caps are stamped: Cragg Surveying, LS 24944. <br />Subsidence stations up Hubbard Creek and stations over the west longwall panels Wat and WD-2 were <br />surveyed from May 24 to May 26 of 2004 <br />The following tables list the survey points with the coordinate data, northing, Basting and elevation for <br />each point along with a table showing the relative shift in position <br />For the points in Hubbard Creek the table shows the change from November, 2003 to May, 2004. <br />For the points over the west longwall panels, WD-1 and WD-2 the table shows the change from <br />November, 2002 to May, 2004. <br />Some of the points show small changes in position which may be due to inherent error in the survey, <br />while some of the points show noticeable shift in position resulting from subsidence due to the mining. <br />See the accompanying map which shows the surface topography, underground mining plan, and the <br />location of the subsidence points. <br />