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<br />Uncompahgre Engineering, LLC <br />164 Society Drive, Suite N <br />Telluride, Colorado 81435 <br />Phone: (9T0) 369-4TiT <br />Greg Lewicki <br />Greg Lewicki and Associates <br />11541 Warrington Court <br />Pazker, CO 80138 <br />Deaz Greg: <br />I'm writing this letter to let you know what my past observations of the groundwater at <br />United's Spring Creek Mesa pit have been. <br />As you know, I am the former owner of Telluride Gravel. I sold Telluride Gravel to <br />Oldcastle -the same company that purchased and owns United Companies. While an <br />employee of Oldcastle, I visited the Spring Creek pit many times because Telluride Gravel <br />imported gravel from that pit. <br />Quite a bit of material has been taken out of this pit over the yeazs and the floor of the pit is <br />down at least twenty feet from original grade. I've never observed or heazd any talk of <br />groundwater in that pit. At one time (and it may still exist), a test pit was dug along the <br />southern portion of the property. That pit was at least forty feet from original grade and no <br />groundwater was observed. <br />I knew what the status of the groundwater was on Spring Creek Mesa prior to Mark <br />Haldorson approaching me as an investor in this new pit. Having spent nine yeazs as the <br />owner of an excavating company along with my schooling at Colorado School of Mines and <br />experience as a Colorado Registered Professional Engineer has given me at least a <br />rudimentary knowledge of groundwater. There is no deposition or vegetative evidence <br />indicative of groundwater in the exposed cut face in the NE corner of the property. The old <br />Metcalf Pit adjoins the George Property to the east and no groundwater came out of the bank <br />in that pit. No groundwater was encountered there until a depth of approximately 50 feet. <br />The fact that there is no near-surface groundwater in the pits along the edge of Spring Creek <br />Mesa and the fact that the material drains so freely was a key factor in my decision to invest <br />in the pit. Groundwater is expected at azound 45-50 feet even during the imgation season. <br />Sincerely, <br />~~ ~~~ <br />David Ballode, P.E. <br />Colorado Civil Engineer # 29645 <br />