2008-05-01_REPORT - C1996083 (7)

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• Bowie Resources, LLC April 30, 2008 Bowie No. 2 Mine 2007 Annual Hydrology Report Introduction The Bowie No. 2 Mine was built and opened by Bowie Resources during the spring and summer months of 1997 with coal production/development beginning on August 15, 1997. This room and pillar operation began developing a main and submain system of underground entries to provide the ventilation, haulage and coal conveyor support for years to come. These entries are driven carefully on projections, held to minimum widths with larger than normal coal pillars left in place to assure adequate support for the life of the mine. The mine began longwall production during November 1999 and currently produces at the rate of 6 million tons per year. The following 2007 Annual Hydrology Report describes the hydrologic monitoring for surface and ground water within the permit and adjacent area of the Bowie No. 2 Mine and presents baseline data for the natural mine plan progression. In this report, springs, ponds and streams (including ditches, rivers, and canals) are considered surface water. Alluvial wells and drill holes are sampled and analyzed as ground water. Please refer to the permit application for a discussion of the methods employed during the gathering of field parameters. Permit Map-09 (attached as an exhibit in this report) indicates the location of all monitoring points referred to in this report. At the request of the Division, we have included baseline data for all Springs, Streams, Drill Holes and Alluvial Wells on the annual tabulation figures. Previously, parameters not tested and tested but found below the Method Detection Limit (MDL) were left blank. In the 2002 through 2007 year tabulation, blank cells represent a "not tested" condition, while a "<MDL" notation is made for the condition where a parameter falls below the Method Detection Limit. Additional requests from the Division during the approval process for PR-04 have added other improvements to the tables, including minimum/maximum/average values for the baseline period and minimum/maximum/average values for the operational influenced period of the monitoring point. Table 1 (immediately following this narrative) defines the monitoring points by type and sample frequency, field parameter sampling schedule and laboratory parameter sampling schedule. Table 2 contains a listing of the laboratory parameters for surface and ground water to be tested in accordance with the mining permit application. Laboratory analysis is performed by ACZ Laboratories, Inc., 2773 Downhill Drive, Steamboat Springs, CO and Enviro-Chem Analytical, Inc., 685 West Gunnison Avenue, Grand Junction, CO. • 2