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• Bowie Resources Limited April 30, 2004 Bowie No. 2 Mine 2003 Annual Hydrology Report Surface Water Monitoring Stations: STREAMS AND DITCHES Thirty four surface water monitoring stations including the North Fork of the Gunnison, Terror Creek, Hubbazd Creek, Freeman Gulch, the Deer Trail Ditch, Stephens Draw, the Fire Mountain Canal and Gulches A through D aze monitored quarterly for field pazameters and semi-annually for full suite analysis. The results of the 2003 field and laboratory studies aze consistent with baseline information supplied in the permit application. The USGS, with right of way permission from the USDA-Forest Service, has installed continuous monitoring stations on both Hubbazd and Terror Creeks. Similar stations aze installed near each creek's confluence with the North Fork of the Gunnison River. These stations have been calibrated by the USGS's hydrology department and now provide accurate readings for the 2003 Annual Hydrology Report. Surface Water Monitoring Stations: SMALL AREA EXEMPTIONS The locations of the small area exemptions aze presented on Map 20. The Applicant will monitor the flow from the small azea exemptions to assure compliance with 4.05.2(3). The Applicant will use its best efforts to obtain samples. The samples will be analyzed for pH, conductivity and total settleable solids. Samples will be in compliance if they contain settleable solid levels of 0.5 ml/1 or • less and the pH is greater than 6.5 and less than 9.0. No small azea exemption sampling was performed during 2003. Coal Member of Mesaverde Eighteen drill holes were monitored during the 2003 sampling season. These holes were monitored quarterly for field pazameters and semi-annually for full suite laboratory analysis. Data collected and evaluated is consistent with the baseline information provided in the permit application. The mine construction work during 1997 required the elimination of four monitored drill holes. These holes aze DH 42; DH 52, DH 54 and DH 55 and were located neaz the mine portals. Drill Holes DH-13 and DH-34b were eliminated by mining. Drill hole DH-34c was damaged by ground movement. DH-16 is blocked at 60-feet so no monitoring can be performed. Drill Holes DH-57, 57a and DH-58, 58a were added in conjunction with the Terror Creek Coal Exploration Plan, with monitoring beginning in the fall of 1999. Drill holes DH-57 and DH57a were destroyed by longwall mining during 2001. Drill holes DH-65, DH-66, DH-67D, DH-67b1w and DH-67abv were added in conjunction with the Ironpoint Federal coal lease, with some monitoring beginning during the fall of 2000. DH-67D was damaged during the year (2003) so no monitoring was performed. This monitoring point is scheduled to be reestablished during 2004. Drill holes DD-NM4X98-27, 29 and 29 are in-mine monitoring holes which were added to the monitoring program during 2003. TC-O1-O1, 02 and 03 were also added to the monitoring program during 2003. •