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CRAGG SURVEYING <br />Stepfien S. Cragg PLS <br />• 14762 2900 Road <br />Hotchkiss, Colorado 81419 <br />Phone 970-872-2258 <br />Fax 970-872-3358 <br />February 03, 2004 <br />Basil Bear <br />Bowie Resources LLC <br />P.O.Box 1488 <br />Paonia, Colorado 81428 <br />RE: Subsidence Survey <br />Bowie No. 1 Mine <br />Pitkin Mesa Pipeline <br />On December 24 of 2003 Cragg Surveying conducted the subsidence survey <br />along the Pitkin Mesa Pipeline for the Bowie #1 Mine. <br />This survey has been based on control monuments established by Colorado Westmoreland, Inc, <br />and later Cypress Coal. They have been in place for several years. The monuments are <br />4 inch iron pipes with a fixed plate which allows the instrument to be placed directly on <br />top of the monument. <br />• The survey has been pertormed by different personnel over the years. Westmoreland and Cypress <br />surveyors up through September of 1994. Ute Engineering and Surveying from June, 1995 <br />through November of 1997. Currently Cragg Surveying is now performing the surveys. <br />Past surveys have relied on the Westmoreland values for these conUol monuments. In May <br />of 2001 Cragg Surveying established survey control for aerial photo mapping for the reclamation <br />of the Bowie #1 Mine Site. This survey control was pertonned using GPS survey methods <br />calibrated to mine control points, Stations F, G and S. These stations are south of the mined <br />area and not subject to subsidence due to mining activity. However Stations B and C are over <br />mined out areas of the mine and subject to possible subsidence <br />• <br />S2-1 <br />