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Jeffrey W. Schwazz, Esq. July 12, 2001 Page 2 We conducted a site visit after the meeting on June 14`h 2001 with John Hickman of Mobile Premix and on June 18`h 2001 with Mr. Brian Kohlenberg from UDFCD. As Applegate Group, Inc. is frequently onsite, it was apparent that a portion of the roadway along the north boundary of the mine site had suffered some damage to erosion from the May 5 flow event. It was also apparent that a flow had passed through the Bull Seep Slough and removed some existing vegetation. Mobile Premix was forced to place rip- rap (approximately 300 tons), in the eroded portion of the roadway, in an attempt to protect the nearby reservoir liner and to halt any further erosion and damage of the existing roadway. Based on our site investigation, review of historic aerial photographic evidence, and witness statements, we believe that the opinions expressed during the June 13 meeting naming the current location of the Bull Seep as the cause of the levee failure to be incorrect. Our findings follow. On June 17, 1965, a significant flood event (29,600 cfs peak at Henderson, CO) occurred along the South Platte River. Prior to this event, the Bull Seep Slough cannot be easily identified from the aerial photographs. Water can be seen to collect in low spots adjacent to South Platte River levee in the approximate location of the Bull Seep, as it is currently located. In the 1966 photo of this area, it is apparent that a lazge flood event has taken place. The Bull Seep Slough alignment can now be readily identified in the photo. A significant amount of water can be seen to the east of the South Platte River levee in what is now known as the Bull Seep Slough and in low spots that are neaz the Bull Seep as currently aligned. [t appeazs that portions of the levee were damaged, although the exact extent cannot be easily determined from the photo. On May 6, 1973 another significant flood event (33,000 cfs peak at Henderson, CO) occurred along the South Platte River. In the1972 photo of the area in question that predates the 1973 event, it is difficult to discern the exact alignment of the Bull Seep Slough channel. This is due to the lack of visible standing water and the significant overgrowth of vegetation that had occurred since 1965. In the 1973 aerial photo of the area in question, the Bull Seep Slough channel can be clearly identified and seen to very closely resemble the Bull Seep Slough that is present today. There was a significant amount of water present in the Bull Seep Slough at the time of the 1973 aerial photograph that shows a large, well-defined channel. It is therefore our understanding that the levee in question was breached during the 1973 Flood event and, according to Mr. Ken McIntosh, an adjacent property owner, immediately repaired by the Brantner Ditch Company. During the June 13`h meeting at UDFCD's offices, Mr. McIntosh described how material comprised of silt and