2010-06-18_REVISION - C1981038 (3)

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STATE OF COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 June 18, 2010 Shannon V.Johnson Department of Natural Resources Division of Water Resources 1313 Sherman Street, Room 818 Denver, CO 80203 Re: Bowie No.1 Mine (Permit No. C-1981-038) Permit Revision Application No. 4 (PR-4) Transfer of Permit Area Portion to the Bowie No. 2 Mine Dear Ms. Johnson: COLORADO D IV IS I ON OF RECLAMATION MINING SAFETY Bill Ritter, Jr. Governor James B. Martin Executive Director Loretta E. Pineda Director The Division of Reclamation, Mining and Safety hereby issues notice, in accordance with Title 34, Article 33, Section 118, Paragraph 3, of the Colorado Revised Statutes, that on June 18, 2010, an application to revise coal mining operations at the Bowie No. 1 Mine was considered complete for the purposes of filing. All review and comment periods as provided in the Act and the Regulations initiate from this date of filing. In Permit Revision No. 4, Bowie Resources LLC (BRL) is proposing to reduce the Bowie No. 1 Mine permit area by 3,339 acres. Of that total, 2,379 of those acres would be transferred over to the Bowie No. 2 Mine and 960 acres would be dropped from the Bowie No. 1 Mine permit area. Under a separate revision for the Bowie No. 2 Mine, Permit Revision No. 12, BRL is proposing to add the 2,379 acres to the Bowie No. 2 Mine acreage, with a new mine plan for that area. BRL is proposing to drop 960 acres of the Bowie No. 1 Mine permit area so that the new permit boundary will coincide with the federal coal lease boundary. Portions of federal coal leases C-37210, C-27432 and D-036955, originally assigned to the Bowie No. 1 Mine, will be accessed underground from the Bowie No. 2 Mine to the east. BRL maintains its right of entry to the applicable sections of the same federal coal leases. All Bowie No. 1 Mine baseline information, hydrology and subsidence monitoring and liability in the transferred permit area will remain the responsibility of BRL but through the Bowie No. 2 Mine permit. The reclamation bond for the Bowie No. 1 Mine will be decreased by $40,244.00, with a similar amount increased for the Bowie No. 2 Mine, since several drill sites and associated roads will be transferred to the Bowie No. 2 Mine. The underground coal mining operation is on land located approximately 3 miles North of Paonia, Colorado. The permit area is further described as follows: Portions of Sections 1, 2, 10-15, 22-25, Township 13 South, Range 92 West of the 6th P.M. Portions of Sections 5-8, 17-19, 29 and 30, Township 13 South, Range 91 West of the 6th P.M. The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Bowie and Gray Reservoir. Office of Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines