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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 28, 2009 <br />William Bear Jr. <br />Bowie Resources, LLC <br />P.O. Box 483 <br />Paonia, CO 81426 <br />Wig. <br />RE: Bowie Resources, LLC, Ownership and Control Updates <br />Bowie No. 1 Mine, C-1981-038, MR-123 <br />Bowie No. 2 Mine, C-1996-083, MR-103 <br />Dear Mr. Bear: <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has reviewed the following revisions, MR-123 for the Bowie No. 1 Mine and MR-103 for <br />the Bowie No. 2 Mine, which update the ownership and control information for Bowie Resources, LLC. <br />The Division input the new ownership and control information into the Applicant Violator System(AVS) <br />and ran an AVS recommendation check. There are two outstanding AML violations which are now <br />linked to Bowie Resources, LLC through on officer, Jeffrey W. Krol. Along with the 2 AML violations <br />there are two outstanding Kentucky Cessation Orders and one outstanding Kentucky Civil Penalty <br />violation. Therefore, the AVS recommendation is deny and the Division is therefore proposing to deny <br />MR-123 for Permit No. C-1981-038 and to deny MR-103 for Permit No. C-1996-083. <br />The officer in question is Jeffrey W. Krol, who is Manager of C&K Bowie, LLC <br />C&K Bowie, LLC is a Member (14% ownership) to Cedars Energy, LLC <br />Cedars Energy, LLC is 99% owner of Bowie Resources, LLC <br />The first AML violation belongs to Global Coal & Carbon, LLC where Jeffrey W. Krol is the member. <br />The other AML violation and State violations belong to Bbq Resources Inc. during which time Global <br />Coal & Carbon, LLC was the operator. <br />Bowie may want to verify with AVS that the Jeffrey W. Krol in AVS is the same Jeffrey W. Krol <br />submitted in the revised ownership information. If he is the same person then Bowie Resources, LLC <br />must show that the AML violations have been paid or are under a settlement agreement before the <br />Division can approve the changes in ownership for the Bowie No. 1 and Bowie No. 2 Mines. Bowie <br />Resources, LLC may contact the Applicant Violator System office at 1-800-643-9748 to discuss how <br />Bowie can resolve this problem. <br />Due to the nature of these ownership changes, the Division is requesting that Bowie Resources LLC <br />submit the updates to the ownership and control information in an application for Succession of Operator <br />Office of Office of <br />Mined Land Rerlamation Denver • Grand lunrtion • Durango Artive and Inactive Mines