2011-04-18_REPORT - C1996083 (4)

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Bowie Resources, LLC April 15, 2011 Bowie No. 2 Mine 2010 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. The following 2010 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. There were a number of changes to the monitoring plan this year. Mining in the northeast was basically unsuccessful so numerous monitoring stations in the northeast area are no longer monitored. Mining was shifted to the west of Terror Creek so monitoring stations were added in this area. The DRMS approved the changes in the water monitoring program though its approval of permit revision no. 12 in 2010. 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. 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. • 2