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ENGINEERING SOLUTIONS FROM THE GROUND DOWN <br />September 28, 2007 <br />File No. 107021-000 <br />Compass Environmental, Inc. <br />9741 Preston Road <br />Suite 205 <br />Frisco, TX 75034 <br />Attention: Mr. Jeff Sallas <br />Subject: Design Report <br />Soil-Bentonite Cutoff Wall for <br />Loveland Ready Mix <br />Bokehvar>/Waiters Pit <br />Fort Lupton, Colorado <br />Dear Jeff: <br />Lyman Henn is pleased to present this design report for the subject project. This report was conducted in <br />accordance with our proposal dated February 27, 2007 and our amendments dated June 5, 2007 and July 3, <br />2007. <br />This report summarizes the subsurface explorations and conditions encountered along the slurry wall alignment, <br />and provides specifications for the key design elements of the slurry wall, clay borrow, slurry wall protection, <br />and site reclamation. Our scope of work did not include additional engineering services which may be required <br />to use the lined gravel pit at a water storage reservoir. Some of these additional engineering services include: <br />• Preparing an Office of the State Engineer Dam Construction Permit (If the proposed reservoir will store <br />water above the natural ground surface), <br />• Preparing the design for reservoir hydraulic facilities (Inlet and Outlet structures). <br />• Perfomring the Initial Liner Test required by the State of Colorado for designating a lined gavel pit. <br />• Petfomung monthly or weekly physical water accounting to demonstrate that the lined pit continues to meet <br />the seepage standazd and report this information to the Water Commissioner as directed by the State <br />Engineer. <br />• Performing an evaluation of the proposed mine reclamation slopes to determine if they can function as <br />permanent reservoir sideslopes, particularly during rapid drawdown reservoir operations. <br />• Providing a topographic survey of the final reservoir configuration and use this survey to provide astage- <br />storage curve for as-constructed reservoir capacity. <br />• Performing an evaluation of groundwater impacts (mounding or shadowing) caused by the slurry wall. <br />110 16`" Street, Suite 900 -Denver, CO 80202-5202 -Tel: 303.534.1100 -Fax: 303.534.1777 - www.lymanhenn.com <br />Geotechnical, Tunneling and Construction Services <br />