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I. Bowie Resources, LLC April 26, 2005 <br />Bowie No. 2 Mine <br />2004 Annual Hydrology Report <br />Introduction <br />The Bowie No. 2 Mine was built and opened by Bowie Resources during the spring and summer <br />months of 1997 with coal production/developmentbegmning on August I5, 1997. This room <br />and pillaz operation began developing a main and submain system of underground entries to <br />provide the ventilation, haulage and coal conveyor support for years to come. These entries aze <br />driven carefully on projections, held to minimum widths with larger than normal coal pillars left <br />in place to assure adequate support for the life of the mine. The mine began longwall production <br />during November 1999 and currently produces at the rate of 6 million tons per yeaz. <br />The following 2004 Annual Hydrology Report describes the hydrologic monitoring for surface <br />and ground water within the permit and adjacent area of the Bowie No. 2 Mine and presents <br />baseline data for the natural mine plan progression. <br />in this report, springs, ponds and streams (including ditches, rivers, and canals) aze considered <br />surface water. Alluvial wells and drill holes aze sampled and analyzed as ground water. Please <br />refer to the permit application for a discussion of the methods employed during the gathering of <br />field parameters. Permit Map-09 (attached as an exhibit in this report) indicates the location of <br />. all monitoring points referred to in this report. <br />At the request of the Division, we have included baseline data for all Springs, Streams, Drill <br />Holes and Alluvial Wells on the annual tabulation figures. Previously, pazameters not tested and <br />tested but found below the Method Detection Limit (MDL) were left blank. In the 2002 through <br />2004 yeaz tabulation, blank cells represent a "not tested" condition, while a "<MDL" notation is <br />made for the condition where a parameter falls below the Method Detection Limit. Additional <br />requests from the Division during the approval process for PR-04 have added other <br />improvements to the tables, including minimutn/maximum/average values for the baseline period <br />and minimum/maximum/average values for the operational influenced period of the monitoring <br />point. <br />Table 1 (immediately following this narrative) defines the monitoring points by type and sample <br />frequency, field pazameter sampling schedule and laboratory pazameter sampling schedule. <br />Table 2 contains a listing of the laboratory pazameters for surface and ground water to be tested <br />in accordance with the mining permit application. Laboratory analysis is performed by ACZ <br />Laboratories, Inc., 2773 Downhill Drive, Steamboat Springs, CO 80487 and Enviro-Chem <br />Analytical, Inc., 685 West Gunnison Avenue, Grand Junction, CO 81505. <br />Table 3 contains a listing of the field pazameters and their application to the Springs, Streams, <br />. Drill Holes and Ponds within the permit boundary. Flow readings for springs and small streams <br />