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Bowie Resources, LLC <br />Bowie No. 2 Mine <br />2011 Annual Hydrology Report <br />March 26, 2012 <br />destroyed by longwall mining during 2001. DH -58 and 58a were eliminated by mining <br />during late 2003 so they will no longer be monitored. Drill holes DH -65, DH -66, <br />DH -67D, DH -67b1w and DH -67abv were added in conjunction with the Ironpoint Federal <br />coal lease, with some monitoring beginning during the fall of 2000. DH -67D was <br />damaged during 2003 so no monitoring was performed. The DH -67 holes were <br />refurbished during 2004. DH -66 was eliminated by mining during early 2004 so it is no <br />longer monitored. <br />Drill holes DD- NM4X98 -27, 28 and 29 were in -mine monitoring holes which were added <br />to the monitoring program during 2003. The three monitoring points were abandoned <br />when the mine activity retreated from the east mains in mid 2004. TC- 01 -01, 02 and <br />03 were added to the monitoring program during 2003. <br />Drill holes CWI -DH -58 and CWI -DH -60 were added to the monitoring program in 2011 <br />with the approval of permit revision 12 to cover the area west of Terror Creek. The <br />Applicant drilled DH 2010 -1 during 2011. Two monitoring wells were established at DH <br />2010 -1. One well is completed in the B -Seam and the other is completed in a water <br />bearing zone above the B -Seam. <br />Conclusion <br />The results of the hydrologic monitoring conducted during the 2011 season indicate <br />consistent chemical and physical properties when compared with the baseline values <br />provided in the permit application. Longwall mining is the focus of all mining operations <br />at Bowie No. 2 Mine. This mining method has not affected the local hydrology during <br />the current year. Water quality at all monitored sites remains good overall and no <br />chemical or physical impacts have been noted. Except as noted above, none of the <br />field or laboratory parameter results indicate an adverse impact associated with the <br />mining operations of the Bowie No. 2 Mine on the local hydrology. <br />6 <br />