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Because Lake Isabelle is located in the Indian Peaks wilderness area, access to the reservoir can <br />only be obtained by foot or by helicopter (with permit). The Company has been working with the <br />U.S. Forest Service to obtain a permit for the construction and repair of Lake Isabelle. The U.S. <br />Forest Service granted the Company a permit in 2011 that will allow for construction access by <br />helicopter. The process to obtain this permit has taken three years of negotiations. During this <br />process inspections of the outlet have been conducted by the Company, by Left hand Excavating, <br />and Smith geotechnical. The poor access and weather have hampered the inspections and will <br />also be a major factor during construction. <br />ALTERNATIVES EVALUATED <br />During our study of two reservoirs dams, we evaluated the various alternatives for each reservoir. <br />For Allen Lake Smith Geotechnical analyzed the follow alternatives; 1) No Action Alternative, <br />and 2) Construction Alternative 1 - Repair with Riprap, and 3) Construction Alternative 2 - Repair <br />with Concrete. <br />For Lake Isabelle Smith Geotechnical analyzed the following alternatives; 1) No Action <br />Alternative, 2) Construction Alternative 1 — Upgrade Existing Outlet Works, and 3) Construction <br />Alternative 2 — Relocate the Control Gate. Following is a summary of each alternative our <br />assessment of each for the two reservoirs. <br />Allen Lake Dam <br />1. No Action Alternative <br />One course of action considered was to do no repair or rehabilitation of the dam. The results of <br />this alternative would not necessarily result in zero cost to the Company. The result of not <br />repairing the dam will ultimately result in major restrictions on the reservoir storage. We would <br />expect restrictions due to the potential for dam failure due to erosion and loss of freeboard if <br />improvements are not initiated. <br />While this alternative has no immediate capital expenditures, the risk and potential costs can be <br />very great. A problem with erosion or a slope failure in the dam embankment during the height of <br />the irrigation season could result in the loss of the reservoir for the season. Thus the cost of not <br />providing for the dam repair can potentially be very high even without failure of the dam. A <br />problem developing during the irrigation season can result in restrictions that could either require <br />the reservoir to be emptied or alternatively only allow limited discharges. <br />Allen Lake and Lake Isabelle — 12.012 <br />Left Hand Ditch Company Page 10 <br />