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September 25, 2012 C -1996- 083 /13owie No. 2 Mine SLB <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 - Availability of Records <br />R - Backfill & Grading <br />Y - Excess Spoil and Dev. Waste <br />Y - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA -Other <br />Y - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />R - Revegetation <br />Y - Subsidence <br />Y - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the Bowie No. 2 Mine conducted by Brock Bowles and Susan Burgmaier of <br />CDRMS. Bill Bear of Bowie Resources, LLC was present during the inspection. Weather conditions were cloudy <br />with intermittent rain showers. Ground conditions were wet, it had rained in the area the previous two days. <br />The mine is currently operating in the B Seam in Panel 12, and gob vent borholes for the #13 and #14 panels were <br />being drilled. A train was being loaded at the Unit Train Loadout. Coal was being trucked up the hill from the B <br />Portal Bench to the D Portal Bench due to conveyor belt repair operations. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />Roads, stockpiles and facilities yard areas were damp from recent rains, so no fugitive dust was being <br />generated in any of these areas. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Records were inspected the morning of September 26, 2012 at the mine office. All required records were <br />available for review, as documented in the attached records review checklist. <br />BACKFILLL and GRADING — Rule 4.14 11 Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.143; Stabilization of Rills and Gullies 4.14.6: <br />Cover material was being placed on the lower bench of Refuse Area 2, where final grade had been <br />established. It was suggested to the operator that the cover depth be documented (preferably a photographic <br />record) during placement. These photos and any field observation notes could then be submitted with the <br />quarterly inspection reports and annual reclamation report for this year to provide a permanent record of <br />reclamation activities in this area. <br />HYDROLOGIC BALANCE - Rule 4.05 ❑ Drainage Control 4.05.1, 4.05.2, 4.053; 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 />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: I <br />Page 2 of 7 <br />