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Introduction According to Stipulation No. 29, Permit No. C-81-038, the operator submits the following Annual Mine Inflow Report for the period of July 1, 2002 through June 30, 2003. MininP Locations and Projections Mining operations at Bowie No. 1 Mine have ceased due to market conditions and coal quality issues. It is highly unlikely mining operations will resume. Mine Inflow The underground Mine Inflow Study at the Bowie No. 1 Mine was not conducted during 2003, as the mine was inactive and inaccessible. No water was discharged from the mine to the surface during the 2002-2003 reporting period. The operator has no plans to discharge water from within the mine to the surface during the 2003-2004 reporting period. No water has been discharged from the mine to date. Water Imaortation and Balance There was no production of coal from the Bowie No. 1 Mine from July I, 2002 through June 30, 2003. Production estimates for the following twelve month period remain at zero. Historically, mine water importation is estimated from recorded flows and related tonnages at the mine from September,1985 through April 1986. With no coal production to base water usage upon, the operator submits only water used for dust suppression at the Unit Train Loadout, which shipped approximately 31,000 tons of coal from the Bowie No. 2 Mine. The bath house has not been used since March of 1999. These water quantities are listed as: Acre Feet Dust Suppression on Bowie No. I Roadway' ............................................0.00 Bathhouse ConsumptionZ ............................................................ 0.00 Evaporative Loss from Ponds ........................................................ 4.60 Silo Usaee3 ....................................................................... 0.00 Total water usage 4.60 Hydrologic Imaacts There was virtually no water inflow into the mine. Therefore, the hydrologic impact caused by the mining operation is either non-existent or not measurable. Conclusions No mine discharge and minimal importation of water is anticipated during the 2003-2004 reporting period. Therefore, the quality and quantity of surface water adjacent to the mine will not be affected. The operator will continue to submit the Annual Subsidence and Hydrology Report which will summarize all subsidence and hydrology data. • 'No or minimal consumption ZBathouse no longer in use. 'Silo consumption to load three trains is less than 0.00 A-F. -1-