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• Bowie Resources Limited May 12, 2003 <br />Bowie No. 2 Mine <br />Annual Hydrology Report <br />Introduction <br />The Bowie No. 2 Mine was built and opened by Bowie Resources Limited during the spring and <br />summer months of 1997 with coal production/development beginning on August 15, 1997. This <br />room and pillar operation is developing a main and submain system of underground entries that <br />will provide the ventilation, haulage and coal conveyor support for years to come. These entries <br />are driven carefully on projections, held to minimum widths with larger than normal coal pillars <br />left in place to assure adequate support for the life of the mine. The mine began longwall <br />production during November 1999 and currently produces at the rate of 6 million tons per year. <br />The following 2002 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) are 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 Holes <br />and Alluvial Wells on the annual tabulation figures. Previously, pazameters not tested and tested <br />but found below the Method Detection Limit (MDL) were left blank. In the 2002 year tabulation, <br />blank cells represent a "not tested" condition, while a "<MDL" notation is made for the condition <br />where a parameter falls below the Method Detection Limit. Additional requests from the Division <br />during the approval process for PR-04 have added other improvements to the tables, including <br />minimum/maximum/average values for the baseline period and minimum/maximum average values <br />for the operational influenced period of the monitoring point. <br />Table 1 (immediately following this narrative) defines the monitoring points by type and sample <br />frequency, field parameter sampling schedule and laboratory parameter 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. <br />Table 3 contains a listing of the field parameters and their application to the Springs, Streams, <br />Drill Holes and Ponds within the permit boundary. Flow readings for springs and small streams <br />are reported in gallons per minute. Stream and river flows aze reported in cubic feet per second. <br />r ~ <br />LJ <br />