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August 29, 2012 C- 1996 -083 /13owie No. 2 Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R °Cornments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />R -Roads <br />NA - Reclamation Success <br />N - Revegetation <br />N -Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />N -Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Bowie No. 2 Mine conducted by Mike Boulay of the DRMS Grand Junction <br />Field Office on August 29, 2012. I was accompanied by Gary Harding of Bowie Resources during the entire <br />inspection. Weather conditions were hot, clear and dry. Ground conditions were dry at the time of inspection. <br />HYDROLOGIC BALANCE -Rule 4.05 <br />Drainage Control 4.05.1. 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Ditch D -D3 located along the west side of Gob Pile 1 and 4 was inspected. Repair work has recently been <br />completed ion this ditch. The ditch appears to be in good condition with proper construction. The liner has been <br />keyed in and the riprap has been placed with very little gaps or voids between rocks. Ditch D -D3 is shown in <br />Photograph No. 1 at the end of this inspection report. Ditch D -F4 was inspected on the eastern boundary of Gob <br />Pile No. 2 and found to be generally in good condition, with exception of the lower end where it enters Pond F. At <br />the inlet to Pond F some erosion is occurring and the liner is visibly damaged (see Photo No. 2). Pond F is <br />scheduled for expansion in the near future and the outlet of Ditch D -F4 will be repaired at that time. <br />Site sedimentation Ponds B, C, D, F, and K were inspected. Cleaning of Pond B was just completed on the day of <br />this inspection. Pond B is a large pond with substantial capacity. Sediment was removed and taken to the Coal <br />Waste Gob Piles for drying and placement. Pond B is shown in Photo No. 3. The operator did a good job of <br />cleaning the pond to restore its full capacity. Ponds C and D were retaining significant amounts of water but were <br />not discharging. Pond F had only a small amount of water at the bottom. Bear tracks were noted in the mud at the <br />bottom of the pond. Pond K was dry and has significant vegetative growth in the bottom (see Photo No. 4). <br />Apparently Pond K does not receive significant runoff No problems were noted at any of the sediment pond <br />locations. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 6 <br />