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Summary: The CEMEX cement plant is located east of Lyons Colorado. The facility consists <br />of a quarry for the mining of high calcium carbonate shale and the Fort Hays Limestone, both at <br />the base of the Niobrara Formation, for the production of cement. Previously drilled water <br />monitoring well CEM -005 became damaged at a depth of approximately 50 feet below ground <br />surface (BGS) when the Schedule 40 Polyvinal Carbonate (PVC) pipe broke. Well CEM -005 is <br />intended to sample water within the Carlile Shale, which directly underlies the Fort Hays <br />Limestone in an effort to monitor the water that may migrate from the cement kiln dust disposal <br />site (C -Pit) to groundwater. In an effort to reduce the likelihood of repeated well damage, the <br />new well was constructed with Schedule 80 PVC pipe. The new well was designed to mirror the <br />previous CEM -005 as closely as possible. <br />Drilling Timeline: Drilling started on Wednesday March 28, 2012. Conditions on March 28, <br />2012 were partly cloudy and 70 °F with 5 -10 miles per hour (mph) winds from variable directions <br />(predominantly southeast and south). On this date, the well was drilled from ground surface to a <br />total depth of 400' BGS. Conditions on Thursday March 29, 2012 were partly cloudy and mid <br />70s °F with 5 -10 mph winds from predominantly southeast and south. On this date, the well <br />casing was set to total depth, the sand filter pack was placed, and the bentonite grout seal was <br />placed to a depth of 204 feet BGS. The grout was not placed to surface on this date because the <br />grout set up too quickly in the tremie pipe, rendering the tremie pipe unusable. <br />Conditions on Friday March 30, 2012 were partly cloudy and mid 70s °F with 5 -10 mph winds <br />from the southeast and south. On this date, the well grout was placed to surface, the conductor <br />casing was pulled and the well was bailed and developed. On Monday April 2, 2012 drillers <br />returned to the site, reported that the well was not producing water (only a few gallons were in <br />the bottom of the well, as indicated by a water level indicator). Subsequently they backfilled the <br />cuttings sump, placed a converter on the top of the casing to convert the top to accept a J -plug <br />designed for Schedule 40 PVC (no J -plug is made for Schedule 80), placed the protective metal <br />casing on the well, constructed a concrete well pad and demobilized from the site. PWT was not <br />on site on Monday April 2, 2012. CEMEX personnel verified the work conducted on April 2, <br />2012.. <br />Lithologic Descriptions: The well lithology was similar from the first encounter with bedrock <br />at (approximately) 36 feet to the first contact with bedded limestone at (approximately) 273 feet <br />BGS. <br />The Smoky Hill Shale is described as follows: <br />Black (Munsell Color 5Y 2.5/1), carbonaceous, moderately hard, platy to blocky, fair to good <br />fissility, petroliferous smell, silty and overall increasing in calcareous content with depth. <br />Accessory minerals included: <br />Chert: Brown (Munsell Color 10 YR 5/3), moderately hard. <br />Limestone: White (Munsell Color Gley 1 8/), moderately hard, crystalline. <br />Pyrite: Crystalline, hard. <br />The Fort Hays Limestone is described as follows: <br />Page2 of 4 <br />P I <br />ACIFIC WESTERN TECHNOLOGIES, LTD. <br />