ALP 18

i
REVISED — January 11, 2011
STATUS OF "SIGNIFICANT RISKS" IDENTIFIED
REMAINING FOR THE PROJECT:
STATUS OF IDENTIFIED "SIGNIFICANT RISKS" REMAINING FOR THE
PROJECT:
Key: T= Currently risk appears to be increasing; I = Currently risk appears to be
decreasing; H = Currently risk appears unchanged; Underline T,� H = Revised
from last version.
H DAM OUTLET WORKS CONSTRUCTION: Electrical installations and testing are
substantially complete, and the risk no longer appears to be increasing.
T RESERVOIR 11T FILL: The filling of the dam continues. The second 30 -day reservoir
`hold' period was completed on July 30 and filling of the reservoir resumed on August 1.
Approximately 75,00 79 500 acre -feet are in storage. Performance of the dam has been
satisfactory. Three piezometers installations located within the foundation of the dam are
being watched closely, but are not considered a concern. Releases, if necessary, must be
through the tunnel that is functional. The structure and all associated features are being
monitored 24 hours per day, seven days per week, in accordance with the "Initial Filling
Criteria" during fill periods and `hold' periods. The 24/7 monitoring continues without
interruption.
, Flows in the Animas River will influence the amount
of water that is capable of being pumped. Pumping will continue for 12 to 18 months
once pumping resumes. Risk of impacting reservoir filling due to structural performance
of the dam does not appear to be increasing.
T HYDROLOGICAL EVENTS: The SNOTEL sites in the Animas River basin are
currently at 120% of the average Snow Water Equivalent (SWE) for this time of vear.
TL. A n ,
Water was available in the system to allow pub to
continue through the end ofDecember. The only down time was primarily for
maintenance and inspection related issues. The extreme extended cold period the last
week ofDecember required the pumping plant to be shut down Impacts to the first fill
duration are impossible to predict with certainty; however, it appears the first fill period
will extend into summer of 2011, at a minimum.
I DURANGO PUMPING PLANT (PUMPS AND ASSOCIATED SYSTEMS):
There are currently some potential issues with the mechanical seal water system, the
Contractor has elected to install larger pumps in an effort to prove that the system