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<br />Barr Engineering Company <br />4700 West 77th Street • Minneapolis, MN 55435-4803 <br />ARD Phone: 952-832-2600 • Fax: 952-832-2601 • WWW.barr.COm An EEO Employer <br />B~= Minneapolis, MN • Hibbing, MN • Duluth, MN • Ann Arbor, MI • Jefferson City, MO <br />July 10, 2007 <br />Mr. Philip Sclunidt <br />Engineering Manager <br />Mountain Coal Company <br />West Elk Mine <br />P.O. Box 591 <br />Somerset, CO 81434 <br />Dear Mr. Schmidt: <br />Pursuant to our telephone conversation, Bart has performed a stability evaluation of the impact of blasting <br />at Deer Creek Shaft on Monument Dam. This letter summarizes the results of that evaluation. <br />Gordon Revey made some estimates of the predicted accelerations at the Dam site induced by the <br />proposed blasting at the Deer Creek shaft. The estimated peak ground acceleration was 0.007g according <br />to Revey. This value is much lower than the design acceleration value used in the analysis for the <br />modified dam. The earthquake acceleration typically cortesponds to low frequencies whereas the <br />blasting-induced acceleration corresponds to high frequency. However, since there is a chance that <br />blasting can take place before completion of the proposed dam enhancement, an analysis was conducted <br />of the existing dam subjected to the estimated peak ground acceleration of 0.007g. <br />The results of the analysis indicate that the computed factor of safety decreases from 1.28 to 1.26 for the <br />drained case (ESSA) and from 1.07 to 1.05 for the midrained case (USSA). This corresponds to an <br />approximately ].56 to 1.89 percent decrease in the factor of safety from existing conditions which is <br />considered insignificant. <br />Sincerely, <br />Phl ip B. So se g' P.E. . . <br />Vice President <br />Z:\CLIENTS\MUQountain Coal Company\Deer Creek Shag Blasting.doc <br />