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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />SEITII.TWO <br /> <br />IntroductiloT <br /> <br />On June 17,2006, the 18-inch corrugated metal outlet pipe failed and caused the development of <br />a 18-foot diameter by 27-foot deep sinkhole in the upstream face of the dam, just upstream from <br />the crest of the dam. Fortunately, the embankment filled the outlet works and the piping process <br />stopped. However, the outlet works was unusable and there was no way for the stored water to <br />be released. The Hills received a verbal breach order from the State Engineer's Office (SEO). <br />The Hills hired URS Consultants to file a breach application with the SEO, develop plans and <br />specifications, file an application for a SEO Dam Safety Permit and assist in the CWCB Loan <br />Application. The Hills also hired Pryor Excavating to breach the dam. On August 24, 2006, <br />Pryor Excavating completed breaching the dam. <br /> <br />'URS <br /> <br />T:\PROJECTS\22238900_MCELROY_DAMlCWCB LOAN FEASIBILITY REPORT DRAFT.DOC\11-OCT-06\22238900IDEN 2-1 <br />