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Page 6 <br />January 13, 2015 <br />Mr. Peter Hays <br />Colorado DRMS <br />The closest structure to mine excavation limits is listed in Table 3. Only the closest structure <br />was modeled, per DRMS suggestion. It is assumed any structure beyond this distance will <br />have a higher factor of safety. Thus, this closest permanent structure is the critical, lowest <br />stability value. The Slope/W program calculated the Factors of Safety (FOS) using the <br />Spencer Method. The FOS correlates more closely with observations of actual slope failure, <br />providing a realistic and more rigorous FOS. On the annotated cross sections (Attachment <br />A), the Spencer FOS is listed. The results of the analyses are listed in Table 3. <br />Table 3: Structures and Entities within 200 Feet of Excavation Limits and the Stability Results <br />Scenario <br />Structure <br />Structure Owner <br />Distance to <br />Structure <br />Factor of Safety <br />Mining <br />Oil well and <br />Noble Energy <br />77' <br />1.9 <br />appurtenances <br />Reclamation <br />Oil well and <br />Noble Energy <br />77' <br />3.6 <br />appurtenances <br />