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f? <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />January 25, 2008 <br />Mr. William A. Bear <br />Bowie Resources LLC <br />P.O. Box 483 <br />Paonia, Colorado 81428 <br />STATE OF COLORADO <br /> <br />RE: Bowie No. 2 Mine, Permit No. C-96-083, Bowie Resources LLC <br />Technical Revision No. 52, Thirteen Gob Vent Boreholes, Adequacy Review <br />Dear Mr. Bear: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Colorado Division of Reclamation, Mining and Safety (Division) has finished its adequacy review of <br />Bowie Resources LLC's (BRL) submittal of Technical Revision No. 52 (TR-52) for the Bowie No. 2 Mine. <br />The following are the Division's questions and comments: <br />Section 2.03.6. Right of Entry and Operation Information <br />Please provide documentation that the USDA-Forest Service and the Bureau of Land Management <br />approve of this project. The Division understands that the NEPA process will be utilized for TR-52. <br />Section 2.05.4. Reclamation Plan <br />2. In the cover letter for the TR-52 submittal, BRL requested incremental bonding so that the total bond <br />would be divided into three annual portions for the three years that the entire project is expected to <br />take, rather than requiring the submittal of the total reclamation bond up front for approval of TR-52. <br />The Division finds incremental bonding acceptable provided the following methodology is used. <br />TR-52 would only be applicable for approximate bore hole and road locations and would not involve <br />any reclamation bond at this time. However, for each of the three years that the proposed drilling <br />program is planned, Bowie would have to submit a minor revision which would approve the exact <br />borehole and road locations for that year and which would include the reclamation bond for that year's <br />drilling. Also, Bowie would have to submit an annual report that would give details on the drilling and <br />abandonment activities that occurred the year before, as well as a running account of the status of each <br />well originally proposed in TR-52. Given this additional requirement, please inform the Division <br />whether or not BRL still intends to do incremental bonding for TR-52. <br />The Division has not started calculating the reclamation cost estimate for the thirteen gob vent <br />boreholes proposed in TR-52. BRL's answer to the above question concerning incremental bonding <br />will determine if the cost estimate will appear in TR-52 or in three future minor revisions. The <br />Division has started its review of the reclamation cost estimate credit for GVB-6F, as had been <br />requested by BRL in the TR-52 cover letter. When this bond estimate review is completed, the <br />Division will send BRL a copy of the reclamation cost estimate for BRL's review. <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines