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Bowie Resources Limited <br />• Bowie No. 2 Mine <br />1997 Annual Hydrology Report <br />Runoff from the topsor7 and coverfiil stockpile is directed to ditch D-F2. The sample point for <br />these SAE areas is ditch D-F2 beyond and to the east of the coverfill stockpile. <br />Runoff from the entrance to the mine property is directed through roadside ditches to culverts <br />crossing under Old State Highway 133. The sample point for this SAE is the outlets ofthese <br />culverts. <br />There were no samples taken from these points during 1997. <br />Coal Member of the Mesaverde Formation <br />Nine drill holes were monitored during the 1997 sampling season. These holes were monitored <br />quarterly for field parameters and semi-annually for fith suite laboratory analysis. Data collected <br />and evaluated is consistent with the baseline information provided in the permit application. The <br />mine construction work during 1997 required the elimination of four monitored drill holes. These <br />holes are identified as DH-42, DH-52, DH-54 and DH-55 and were located near the mine portals. <br />During 1997, drill hole 38 (DH-38) was difficuh to monitor for field parameters. While trying to <br />• monitor it during the second quarter, the banger used to extract the sample water from this hole <br />became lodged. It was finally freed and removed during the fourth quarter, but no water sample <br />was retrieved. Additional problems were encountered at drill hole 13 (DH-13) and dn71 hole 34C <br />(DH-34C). DH-13 is believed to be full of sediment and will be washed out during 1998. No <br />field parameters (except water level) were obtained at DH-34C during June due to a leaky bailer. <br />Conclusion <br />The resuhs of the hydrologic monitoring plan conducted during the 1997 season indicates <br />consistent chemical and physical properties when co~ared with the baseline values provided in <br />the permit application. Mining at the Bowie No. 2 mine is in the early stages with minimal <br />extraction ratios employed to insure the longevity of the underground coal production systems. <br />These mining methods have protected the local hydrology during the current year. Underground <br />development issues will again be the focus of 1998 mining and will not be expected to adversely <br />impact the local hydrology. Water quality at all monitored sites remains good overall and no <br />chemical or physical impacts have been noted. None of the field or laboratory parameter resuhs <br />indicate or suggest an adverse impact associated with the mining operations of the Bowie No. 2 <br />mine on the local hydrology. <br />• <br />Page 3 <br />