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3.0 Surface Water Information The data collected from Oxbow Mining, LLC (OMLLC) surface water monitoring sites along with the results of laboratory analyses aze presented in Exhibit I-Surface Water Information. The following site discussions aze presented from west to east through the OMLLC property. H-1 -Lower Hubbazd Creek Surface water monitoring point H-1 is located on Hubbazd Creek, where this perennial stream flows through the western edge of the OMLLC permit azea associated with the abandoned but reclaimed Somerset Mine facility azea and Blue Ribbon Mine Facility. Until 1996, the most recent surface activity in the azea was the reclamation of the lower Hubbazd Creek site. In 2005 the Hubbard Fansite was permitted and constructed. The H-1 site is utilized as a down gradient site to detect potential changes in stream quality or quantity as a result of mining activities. Mining activities include both the OMLLC Hubbazd Creek facilities and the Blue Ribbon Mine facility, Hubbard Creek point H-1 was monitored in accordance with the permit requirements. Hubbard Creek is a stream that also serves as atrans-basin diversion from the Terror Creek reservoir during the summer irrigation season. The Hubbard Creek drainage is also used extensively by USFS and BLM recreationists and Bowie Resources mining related activities. Hubbazd Creek continues to exhibit summer flow volumes in response to the management of upstream diversions. No significant difference in the 2006 monitoring results from baseline or historical measurements was noted. B-1, B-2 and B-3 -Beaz Creek The Beaz Creek canyon light use road is used extensively to access the upper reaches of Beaz Creek for cattle and sheep grazing, logging, mine exploration and methane ventilation activities, hunting, etc. BB=1 -- Surface water monitoring point B-1 -Lower Bear Creek, an ephemeral drainage, is monitored to verify that the Elk Creek mine does not have an adverse affect on the quality of runoff in the drainage. During 2006 there was, again, only minimal to no flow at B-1 after the conclusion of spring snowmelt. No additional retreat mining of D seam occurred under the Bear Creek drainage during 2006. The status of the Bear Creek road is assessed as part of ongoing subsidence monitoring, No adverse effects as a result of mining activities were observed to have occurred to the Bear Creek road in 2006. From a historical perspective it is important to remember that the Beaz Creek drainage was also undermined by extensive historic mine workings in the B and C seam of the Somerset Mine. • B-2 and B-3 -- In accordance with the Elk Creek Federal coal lease COC-61357 "Water Replacement Ptan" stipulation, surface water monitoring points B-2 and B-3 are monitored for flow twice annually after tributary flow from side channels between the two points has ceased.