2009-03-23_REPORT - C1981022 (2)

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0 3.0 Surface Water Information The data collected from Oxbow Mining, LLC (OMLLC) surface water monitoring sites along with the results of laboratory analyses are presented in Exhibit 1- Surface Water Information. The following site discussions are presented from west to east through the OMLLC property. H-1- Lower Hubbard Creek Surface water monitoring point H-1 is located on Hubbard Creek, where this perennial stream flows through the western edge of the OMLLC permit area associated with the abandoned but reclaimed Somerset Mine facility area and Blue Ribbon Mine Facility. Until 1996, the most recent surface activity in the area was the reclamation of the lower Hubbard Creek site. Mining activities also included the upper Hubbard Creek facilities area and the reseeded and reclaimed Blue Ribbon Mine facility. In 2005 the Hubbard Bleeder Fansite was permitted and constructed. During 2007, Bowies Resources, Ltd started construction of a ventilation shaft facility on lands managed by the USFS. The Bowie site is located adjacent to Hubbard Creek and up gradient of the Hubbard Creek facilities. The Bowie shaft construction continued into 2008 as did use of the upper Hubbard Creek facilities as a project staging area. Hubbard Creek is a stream that also serves as a trans-basin diversion from the Terror Creek reservoir during the summer irrigation season. The Hubbard Creek drainage and the Delta County two track road is also used extensively by USFS and BLM recreationists and other Bowie Resources mining related activities The H-1 site is utilized as a down gradient site to detect potential changes in stream quality or quantity as a result of mining activities. Hubbard Creek point H-1 was monitored in accordance with the permit requirements. Hubbard Creek continues to exhibit summer flow volumes in response to the management of upstream diversions. No significant difference in the 2008 monitoring results from baseline or historical measurements was noted. B-1, B-2 and B-3 - Bear Creek The Bear Creek canyon light use road is used extensively to access the upper reaches of Bear Creek for cattle and sheep grazing, logging, hunting, mine exploration and methane ventilation activities, natural gas operating and support companies, etc. BB=1 -- Surface water monitoring point B-1 - Lower Bear Creek, an ephemeral drainage, is monitored as a down gradient site to verify that the Elk Creek mine does not have an adverse affect on the quality of runoff in the drainage. During 2008 there was, again, typically only minimal to no flow at B-1 after the conclusion of spring snowmelt. Retreat mining of D seam occurred under the Bear Creek drainage during 2008. The status of the Bear Creek road is assessed as part of ongoing subsidence monitoring. No adverse effects as a result of mining activities were observed to have occurred to the Bear Creek road in 2008. From a historical perspective it is important to remember that the Bear Creek drainage was also undermined by extensive historic mine workings in the B and C seam of the Somerset Mine. 6