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STATE OF COLORADO <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 />May 9, 2011 <br />Mr. William A. Bear <br />Bowie Resources LLC <br />P.O. Box 483 <br />Paonia, Colorado 81428 <br />RE: Bowie No. 2 Mine, Permit No. C-1996-083, Bowie Resources LLC <br />Minor Revision No. 123, Six Gob Vent Bore Holes, Adequacy Review <br />Dear Mr. Bear: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining and Safety (Division) has finished its adequacy review <br />of Minor Revision No. 123 (MR-123) for the Bowie No. 2 Mine. The Division has no adequacy <br />questions or comments other than the reclamation cost estimate. <br />Attached is the Division's reclamation cost estimate for MR-123. The cost estimate consists of eight <br />tasks (a summary sheet and tasks 271-277) and represents an increase in liability of $98,074.00. Bowie <br />Resources LLC (BRL) is currently under bonded by $125,607.00 so additional bond monies will need <br />to be submitted before MR-123 can be implemented. <br />The Division's estimate is $53,773.00 more than the estimate of $44,301.00 submitted by BRL. One <br />reason is that BRL uses an hourly dozer cost of $90.00 when the actual dozer cost is $198.57/hour. <br />Additionally, BRL does not include a cost for topsoil replacement on the pads and roads (a direct cost <br />of $6,735.00). Finally, BRL only has a cost for reseeding one drill pad of 0.92 acres instead of the <br />required six drill pads, resulting in a direct cost difference of $8,751.00. <br />Please review the Division's reclamation cost estimate and inform the Division in writing whether or <br />not the cost estimate is acceptable to the Division. <br />The Division also requests that BRL reexamine the total disturbance acreage for MR-123. The MR- <br />123 cover letter and application form state that the total disturbance is 8.1 acres. However, the Division <br />calculates the total disturbance to be 9.26 acres. This value is based on six drill pads with nominal <br />dimensions of 200 feet by 200 feet (0.92 acres each for a total of 5.51 acres) and 6,811 feet of road, <br />nominally 24 feet wide ( for a total of 3.75 acres). Please submit a revised application form with the <br />corrected disturbance value if you agree. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines