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Location <br />Available Material (cy) <br />Required Fill (cy) <br />Net (cy) <br />East Pit <br />24,760 <br />922 <br />23,838 <br />Marsh Area <br />0 <br />35,663 <br />- 35,663 <br />West Pit <br />36,287 <br />39,233 <br />-2,946 <br />Stockpiles around West Pit <br />18,432 <br />0 <br />18,432 <br />Total <br />3,661 <br />March 29, 2011 <br />File No. L10082 -000 <br />Valco, Inc. <br />9296 Windhaven Drive <br />Parker, Colorado 80134 <br />Attention: Mr. Tom Brubaker <br />Subject: <br />Mr. Brubaker: <br />A DIVISION OF BRIERLEY ASSOCIATES, LLC <br />Engineering Solutions from the Ground Down <br />Reclamation Grading at <br />Valco Canon City Gravel Pits <br />Canon City, Colorado <br />This letter presents the results of grading volume calculations for the mined pits at the subject location. Lyman <br />Henn, a division of Brierley Associates, LLC (Lyman Henn) performed the work based on our agreement dated <br />December 14, 2010. The Valco Canon City gravel pits consist of two pits separated by the north -south trending <br />MacKenzie Blvd., in Canon City, Colorado. The pits were mined for sand and gravel and are unlined. Valco, <br />Inc. wishes to complete reclamation of the pits in order to be able to sell the property. <br />Reclamation will include grading the sides of the pits to meet the requirements in the original reclamation plan. <br />The requirements, as understood by Lyman Henn, are as follows: <br />• Slopes shall be no steeper than 3:1 (horizontal:vertical) from 5 feet above the water to 10 feet below the <br />water surface line. <br />• Slopes shall be no steeper than 2:1 from 10 feet below the water surface to the bottom of the pits. <br />Lyman Henn performed a volume calculation using 2011 AutoCAD Civil 3D of existing versus required fill <br />material based on using the existing crests of slope at the final reclaimed location. A previous, preliminary <br />estimate used 50 foot offsets from existing property lines, but the volume of required fill appeared to be <br />substantial and therefore the calculation was not developed further. The table presents the estimated volumes of <br />available onsite material and fill required to grade the slopes per the reclamation plan. Our assumptions used in <br />developing these values are provided below. <br />Available versus Required Material Volumes <br />110 16`" Street, Suite 700 — Denver, CO 80202 -5202 — Tel: 303.534.1100 — Fax: 303.534.1777 — www.lymanhenn.com <br />Geotechnical, Tunneling and Construction Services <br />Denver & Littleton, CO - Boston, MA - Bedford, NH - East Syracuse, NY - Champaign, IL - Austin & Dallas, TX - Moraga, CA <br />