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J. E. STOVER & ASSOCIATES <br />2768 COMPASS DRIVE, SUITE 101 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />RE~~I V ~® <br />January 29, 2004 <br />J. J. Dudash <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Bowie Resources Limited <br />Bowie No. 1 Mine; Permit Renewal No. 4 <br />Permit No. C-81-038 <br />Dear Mr. Dudash: <br />FEB U _ ?.UDy <br />'lion of Minerals and Ceoloo~ <br />Bowie Resources Limited's, (BRL), letter dated January 16, 2004, notified the DMG that BRL <br />will be adversely affected by the DMG's proposed decision to approve BRL's permit renewal <br />application No. 4. The notice was given because BRL believes the new proposed performance <br />bond is excessive. Following are BRL's comments on the new proposed performance bond: <br />East Mine Reoradina <br />The east mine regrading and remaining structure demolition work is estimated by the <br />DMG to cost approximately $2.4 million. BRL has two bids to perform this work. The <br />low bid is $1.4 million. Thus, BRL believes the DMG has overestimated the cost to <br />perform the east mine regrading and remaining structure demolition work by about $1.0 <br />million. The attached three ring binder provides the bids, scope of work and supporting <br />information for this project. <br />Unit Train Loadout Silo Demolition <br />The silo demolition project is estimated by the DMG to cost approximately $1.3 million. <br />BRL has one bid to perform fhis work. The bid is $0.5 million. Thus, BRL believes the <br />DMG has overestimated the cost to perform the silo demolition project by $0.8 million. <br />The attached three ring binder provides the bids and supporting information for this <br />project. <br />Unit Train Loadout Structure Removal <br />The structure demolition work at the unit train loadout is estimated by the DMG to cost <br />approximately $0.67 million. BRL has obtained two bids for this work. The low bid is <br />$0.26 million. Thus BRL believes the DMG has overestimated the cost to perform the <br />structure removal cost by $0.41 million. The attached three ring binder provides the <br />bids and supporting information for this project. <br />Task 120 -Seal Rock Slooe Entrv Structures <br />The rock slope entries have been removed from the permit and obviously were never <br />constructed. This item should be removed from the bond estimate instead of removed <br />through the bond release process. <br />