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Mr. Jim McFarland November 19, 2002 Page 2 Inc Data from 16 exploratory borings drilled at the site (see Existing Conditions Map, Exhibit C; and Summary Logs, Exhibit I) indicates the general subsurface profile consists of approximately two to 10 feet of overburden sandy clay and clayey sand overlying approximately eight to 35 feet of sand and gravel with local clayey and silty sand lenses on top of claystone and sandstone bedrock. The alluvial deposit is thickest in Pod 2 and thinnest in the north part of Pod 1. Clayey sand and silty sand lenses appear to be more prevalent in Pod 1 than in the other pods. Such lenses were also locally encountered in Pod 4 and may be present in parts of Pod 3. Groundwater depths at the time of drilling were generally five feet below the ground surface, but were locally as deep as 10 to 15 feet. From a geotechnical standpoint, the sand and gravel will form most of the mine slope. These soils are generally strong and stable, particularly when dewatered. STRUCTURES WITH 200 FEET OF DISTURBED AREAS Structures in the area and at the site are predominantly ditches, gas wells and associated pipelines, tank batteries, county roads, overhead utilities, and two farm houses with related farm buildings. Some of the proposed pipelines, overhead utility lines, feedlots, and site roadways cross through areas to be mined. We understand Hall-Irwin plans to enter into agreements with the owners of these structures regarding future use and possible relocation. Minimum mining setbacks of 55 feet will be maintained until agreements are in-place. The Town of Milliken wastewater treatment plant is over 200 feet from the mine. All known man-made structures within 200 feet of the mine, excluding those requiring agreements with owners, are listed below: Pod I • An imgation ditch approximately 55 feet [o the west. • An irrigation ditch approximately 55 feet to the south. • Weld County Road 23/site access road approximately 60 feet to the west. • Former Town of Milliken building approximately 100 feet to the west. • Duke Energy gas line approximately 85 feet to the south. • Patina gas well approximately 75 feet from north part of Pod 1. • Patina gas line and access road 55 feet to the east. Pod 2 • Farm house and outbuildings approximately 100 feet to the west at their nearest point. • Irrigation ditch approximately 70 feet to the west. • Weld County Road 23 approximately 80 feet to the west. • Irrigation ditch approximately 70 feet to the south.