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CRAGG SURVEYING <br />Stephen 8. Cragg PLS <br />• 14762 2900 Road <br />Hotchkiss, Cdorado Bi419 <br />Phone 974.872-2258 <br />f=ax 970$723358 <br />January 03, 2008 <br />Collin Stewart <br />bowie Resources LLC <br />P.O. Box 1488 <br />Paonia, Co. 81428 <br />Jim Stover <br />J.E. Stover and Assodates <br />2788 Compass Drive <br />Grand Junction, Cdorado 81506 <br />RE: Bowie No. 2 and No. 3 Mines <br />Subsideroe Survey <br />December05-14, 2005 <br />New stations established in Decern6er 2005 <br />A subsidence monitoring survey rteiwnrk has been established by G~ Surueyirfg for the <br />Bowie Resources, Bowie No. 2 and 3 Mures. The survey is based on the existing stavey control grid in <br />place mound the Bowie No. 2 Mine stxface facilities. The poirrts for the subsidence survey network have <br />t>eerf established using a Trimble 4800 GPS survey system. This GPS survey has been plibnded to <br />the existing survey contrd 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 yeas started Tn May of 1999 with add'fional points added in August 1999, <br />November 2000, November 2001, November 2002, and November, 2003. <br />The majority of the subsideros monitoring points are a # 5 rebar, 24 to 30 irxdres in length, wfth a 2 inch <br />aluminum survey cap. The caps are stamped: Cragg Surveying. LS 24944. <br />New subsidence stations over the west longuvall panels WD-1, tND-2 and 1ND~3 of the Bowie No.2 Mine <br />and the west brrgwall panels B-1, B-2 and B-3 of the Bowie No.3 Mine were established and surveyed <br />from December 05 to December 14 of 2005. These new subsidence monitoring points are # 5 and # 8 <br />rebar with no alurrgnum survey cap on top. <br />The fo8owing tables list the survey pofrrts with the ooondinate data, northing, Basting and elevator far <br />each point along with a table stowing the relative shift in position from the previous survey. <br />Some ~ the points stow small dtarrges in position which may be due to inherent enor in the survey, <br />while some of the points stow noticeable shift in position resulting from subsidence due to the mining. <br />See the accempartyirg map which stows the surface topography, underground mining plan, and the <br />location of the subsidence points. <br />• <br />S5-1 <br />