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CRAGG SURVEYING <br />Stephen B. Cragg PLS <br />14762 2900 Road <br />• Hotchkiss, Colorado 81419 <br />Phone 970.872-2258 <br />Fax 970.872-3358 <br />May 31, 2006 <br />Collin Stewart <br />Bowie Resources LLC <br />P.O. Box 1488 <br />Paonia, Co. 81428 <br />Jim Stover <br />J.E. Stover and Associates <br />P.O. Box 60340 <br />Grand Junction, Colorado 81506 <br />RE: Bowie No. 2 and No. 3 Mines <br />Subsidence Survey <br />May 10-15, 2006 <br />A subsidence monitoring survey network has been established by Cragg Surveying for the <br />Bowie Resources, Bowie No. 2 and 3 Mines. The survey is based on the existing survey control grid in <br />place around the Bowie No. 2 Mine surface facilities. The points for the subsidence survey network have <br />been established using a Trimble 4800 GPS survey system. This GPS survey has been calibrated to <br />• the existing survey control grid and then the survey has been extended to the north to cover the area <br />where the coal has been mined and will be mined in the future. <br />The subsidence survey network was started in May of 1999 with additional poirrts added in August 1999, <br />November 2000, November 2001, November 2002, and November, 2003. The majority of the <br />subsidence monitoring points area # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum <br />survey cap. The pps are stamped: Cragg Surveying, LS 24944. <br />New subsidence stations over the west longwali panels WD-1, WD-2 and WD3 of the Bowie No.2 Mine <br />and the west IongwaI1 panels B-1, B-2 and B-3 of the Bowie No.3 Mine were established and surveyed <br />from December~,D5,lto December 14 of 2005. These new subsidence monitoring points are # 5 and # 6 <br />rebar with no aWrFiinum survey cap on top. <br />Subsidence stations over the west longwall panels WD-1, WD-2 and WD-3 of the Bowie No.2 Mine <br />and the west longwall panels B-1, B-2 and B-3 of the Bowie No.3 Mine were surveyed from <br />May 10 to May 12 of 2006. Hubbard Creek stations were surveyed on May 15. <br />The following tables list the survey points with the coordinate data, northing, Basting and elevation for <br />each point along with a table showing the relative shift in position from the previous survey. <br />Some of the points show small changes in position which may be due to inherent error in the survey, <br />while some of the points show noticeable shift in position resulting from subsidence due to the mining. <br />See the accompanying map which shows the surface topography, underground mining plan, and the <br />location of the subsidence points. <br /> <br />S1-1 <br />