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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 />Date: December 28, 2010 <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />To: Bowie Resources, LLC AVS File <br />Permit No. C-1981-038 and C-1996-083 <br />From: Johanna Cramer <br /> <br />Re: Violations being linked to Bowie Resources by Jeffrey W. Krol in AVS <br />After reviewing the following: Third Amended & Restated OA, letters from Cedar's LLC dated December <br />22, 2010 and Jeffrey W. Krol dated December 23, 2010, the conclusion is that there is enough evidence <br />to say that Jeffrey W. Krol does not have any control directly or indirectly over Bowie Resources, LLC <br />After a phone conversation with Kentucky's Division of Mine Reclamation and Enforcement on <br />December 22, 2010 and December 28, 2010, the violations linked to Jeffrey W. Krol in AVS from a <br />Kentucky coal company, Bbq Resources, Inc. are not his. He was not in the Kentucky database as an <br />individual nor was Global Coal & Carbon, LLC ever listed or authorized to be the on the ground operator <br />for Bbq Resources, Inc. <br />Because of this Bowie Resources, LLC is free from these violations and we will issue the ownership & <br />control revisions as stating "No Violations" and with the Divisions decision to "Issue". <br />Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango <br />Office of <br />Active and Inactive Mines