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• Bowie Resources Limited April 30, 2004 Bowie No. 2 Mine 2003 Annual Hydrology Report Introduction The Bowie No. 2 Mine was built and opened by Bowie Resources Limited during the spring and summer months of 1997 with coal production development beginning on August 15, 1997. This room and pillaz operation began developing a main and submain system of underground entries to provide the ventilation, haulage and coal conveyor support for yeazs to come. These entries aze driven cazefully on projections, held to minimum widths with lazger than normal coal pillazs left in place to assure adequate support for the life of the mine. The mine began longwall production during November 1999 and currently produces at the rate of 6 million tons per yeaz. The following 2003 Annual Hydrology Report describes the hydrologic monitoring for surface and ground water within the permit and adjacent azea of the Bowie No. 2 Mine and presents baseline data for the natural mine plan progression. In this report, springs, ponds and streams (including ditches, rivers, and canals) aze considered surface water. Alluvial wells and drill holes aze sampled and analyzed as ground water. Please refer to the permit application for a discussion of the methods employed during the gathering of field pazameters. Permit Map-09 (attached as an exhibit in this report) indicates the location of • all monitoring points referred to in this report. At the request of the Division, we have included baseline data for all Springs, Streams, Drill Holes and Alluvial Wells on the annual tabulation figures. Previously, pazameters not tested and tested but found below the Method Detection Limit (MDL) were left blank. In the 2002 and 2003 yeaz tabulation, blank cells represent a "not tested" condition, while a "<MDL" notation is made for the condition where a pazameter falls below the Method Detection Limit. Additional requests from the Division during the approval process for PR-04 have added other improvements to the tables, including minimum/maximum average values for the baseline period and minimum/maximum average values for the operational influenced period of the monitoring point. Table 1 (immediately following this narrative) defines the monitoring points by type and sample frequency, field pazameter sampling schedule and laboratory pazameter sampling schedule. Table 2 contains a listing of the laboratory parameters for surface and ground water to be tested in accordance with the mining permit application. Laboratory analysis is performed by ACZ Laboratories, Inc., 2773 Downhill Drive, Steamboat Springs, CO 80487 and Enviro-Chem Analytical, Inc., 685 West Gunnison Avenue, Grand Junction, CO 81505. Table 3 contains a listing of the field pazameters and their application to the Springs, Streams, Drill Holes and Ponds within the permit boundary. Flow readings for springs and small streams • aze reported in gallons per minute. Stream and river flows aze reported in cubic feet per second.