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ENGINEERING SOLUTIONS FROM THE GROUND DOWN <br />April 3, 2007 <br />File No. 107009-000 <br />Banks and Gesso, LLC <br />720 Kipling Street, Suite 117 <br />Lakewood, Colorado 80215 <br />Attention: Alex Schatz <br />Subject: Slope Stability Analysis <br />Sundance Sand and Gravel Resource <br />EI Paso County, Colorado <br />Mr. Schatz: <br />Lyman Henn, Inc. (Lyman Henn) is pleased to present Banks and Gesso, LLC (Banks and Gesso) with the results <br />of a slope stability evaluation of the excavation slopes at the proposed Sundance Gravel Pit, an alluvial deposit <br />located within the floodplain of Fountain Creek. Figure 1 shows the project location. The site is proposed as a <br />construction materials aggregate mine and will be mined in two phases. Lyman Henn performed this evaluation to <br />determine a recommended setback between the proposed gravel mine excavation slopes/highwalls and adjacent <br />structures. The slope stability analyses were performed using: 1) existing information from the site vicinity <br />provided by Banks and Gesso; 2) conservative assumptions for material strengths for the natural soil materials in <br />the proposed cut slopes; 3) expected groundwater conditions; and 4) Lyman Henn's understanding of the <br />proposed mining plan. <br />SITE DESCRIPTION <br />The proposed mining plan consists of three mining areas separated by native soils. The site is located within <br />parts of the E'h of Section 9, the SW '/a of Section 10, the NW'/a, SW '/a, and the SE'/a of Section 14, the NW 1/s, <br />NE'/a, and the SE'/a of Section 15, the NE t/a of the NE'/a of Section 22 and the NW'/a of Section 23, all in <br />Township 17 South, Range 65 west, 6s' P.M, El Paso County, Colorado. The western boundary of the site abuts <br />Union Pacific Railroad (UPRR) and the eastern boundary abuts Fountain Creek. A buried fiber optic line and <br />overhead utility run pazallel to the UPRR. Barn structures exist [o the west and south of the permit boundary. <br />Local service electric utility poles run east to west through the middle of the site, dividing Phase 1 and Phase 2 of <br />the mining plan. High tension electrical transmission lines mn east to west in the southern portion of the site, <br />dividing Phase IIA and Phase TIB of the mining plan. The specific adjacent features addressed by [his evaluation <br />as shown on Figure 2 aze: the local electric service utility poles in the, the high tension electric transmission, the <br />UPRR and fiber optic line, and the existing barn structures. Existing grade at the site slopes gradually up from <br />southeast to northwest at an average grade of approximately 0.6 percent from el. 5250 to 5300. Future temporary <br />overburden stockpiles of up to 40 ft with 2H:1 V (horizontal:vertical) side slopes aze planned along the western <br />boundary of the site. <br />110 16th Street, Suite 900 -Denver, CO 80202-5202 -Tel: 303.534.1 100 -Fax: 303.534.1777 - vvww.LymanHenn.com <br />Geotechnical,Tunneling and Construction Services <br />