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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 />January 07, 2005 <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 />On December 24, 2004 Cragg Surveying conducted the subsidence survey fa the <br />old Bowie No.1 Mine along the Pitkin Mesa Pipeline. <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 rronument. <br />The survey has been performed 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. Curently Cragg Surveying is now pertorming the surveys. <br />Pact surveys have relied on the Westmoreland values for these control 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 performed using GPS survey methods <br />glibrated 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 />