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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 />August 15, 2005 <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 />2768 Compass Drive <br />Grand Junction, Colorado 81506 <br />RE: Bowie No. 2 Mine <br />Subsidence Survey Hubbard Creek <br />Date of Survey -August 02 and O5, 2005 <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 corrtrd grid in <br />place around the Bowie No. 2 Mine surface faalities. 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 corrtrol grid and then the survey has been extended to the north to cover the area <br />when; 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 points 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 qps are stamped: Cragg Surveying, LS 24944. <br />Subsidence stations up Hubbard Creek were surveyed on August 02 and O5, 2005. <br />The following tables list the survey poirrts with the mate data, northing, eastbng and elevation for <br />each point along with a table stxnving 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 poirrts 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 />S3-1 <br />