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May 9, 2012 C- 1981 - 038 /Bowie No. 1 Mine BFB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />R - Air Resource Protection <br />R - Roads <br />R - Availability of Records <br />R - Reclamation Success <br />R - Backfill & Grading <br />R - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />R - Topsoil <br />COMMENTS <br />INTRODUCTION - This was a complete inspection of the Bowie No. 1 Mine conducted by Brock Bowles of the <br />Colorado Division of Reclamation, Mining and Safety on May 9, 2012. Basil Bear of Bowie Resources LLC <br />(BRL) was present for the inspection. Weather conditions were clear and warm with a light wind. The ground <br />conditions were dry. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />There were no observed problems with fugitive dust coming off the site or disturbed areas. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The required mine records were located at the Bowie No. 2 Mine office. See attached records checklist. <br />BACKFILL and GRADING — Rule 4.14 Contemporaneous Reclamation 4.14.1; Approximate Original <br />Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic <br />Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />There were no signs of cracking or slumping on the backfilled bench areas of the East Mine, ROM area, <br />West Mine or the coal mine waste disposal area. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The east channel at the East Mine was repaired and filled with large rocks. The rock used for the repair <br />was larger than described in the permit (Drawing 6A -5D, note 2) (photo 1). Jim Stover, mine engineer, was <br />notified of this discrepancy. Stover will inspect the repair work and will verify if the rock size used is adequate. <br />Stover will also verify the rock used in the channel north west of the coal mine waste pile (photo 2) and the rock <br />used where the culvert was removed at the coal mine waste pile sediment pond. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 6 <br />