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Oreanization Relationships and Authority For Halting Construction (#41: <br />CHAIN OF AUTHORITY <br />Owner: Cripple Creek and Victor Mining Company (CC&V) <br />The owner has the authority to direct construction activities, construction management, <br />and Construction Quality Assurance ("CQA") activities at any time. The owner can stop <br />construction and order modification of any construction activity as they deem necessary. <br />Modification of design shall be in consultation with the OMLR, Golder, and Bateman and <br />any changes in approved specifications or designs must be approved by the OMLR. <br />Construction Manager: Bateman Engineering, Inc. <br />Bateman works directly for CC&V and, as does CC&V (above), has the authority to <br />interact with construction activities, construction management, and CQA activities at any <br />time. Bateman has the authority to direct CQA activities as they determine necessary. <br />Bateman can stop construction and order modification of any construction activity as they <br />determine is necessary. Bateman-initiated modification of the design shall be in <br />consultation with Golder and CC&V. CC&V shall consult with OMLR. Any change <br />in approved specifications or design shall be approved by the OMLR. <br />Design Engineer &CQA Monitoring: Golder Associates and Golder Construction Services. <br />Golder is under contract to Bateman to provide CQA services. Golder primarily reports <br />to Bateman and will immediately report any construction deficiency to Bateman. Golder <br />has the authority to stop construction but usually will immediately report the apparent <br />problem by radio to Bateman who will stop the construction should a situation develop <br />that would not meet approved specifications or not meet approved designs or which <br />jeopardize the integrity of the engineering design. <br />Leach Pad Construction Contractor: Ames Construction <br />Ames Construction is under contract to CC&V and is managed by Bateman Engineering, <br />Inc., which in turn provides construction services. Ames and its subcontractors are <br />responsible to respond to orders by Bateman, or from CC&V, or CQA-related <br />instructions from Golder Associates or Golder Construction Services. Ames is also <br />required to remediate any unsatisfactory conditions noted by Bateman or Golder, upon <br />receiving instructions from Bateman on the corrective action. <br />In summary, Golder is a subcontractor to Bateman Engineering, Inc. Bateman Engineering, Inc. <br />is the prime engineering services contractor to CC&V. Bateman and Golder Associates are <br />authorized to direct that any phase of construction operations be halted immediately if <br />specifications or designs are not being met. Golder directs Ames Construction directly in such <br />matters unless Bateman is also present, in which case Bateman directs cessation. Once the <br />activities are halted and if Bateman is not present at the time, Golder informs Bateman <br />Engineering, Inc. of the potential problem and Bateman Engineering, Inc. will direct corrective <br />action as appropriate. Cessation of activities creating the potential noncompliance will be <br />5 <br />