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Volume 16, Issue 2 2nd QTR 2010

President s Message

Dan Cadenhead, President

Weathering the storm I am frequently asked about the condition of Anderson Drilling and our parent company Keller in these difficult times. This is a great question and it is very timely given the economic turmoil that seems to be impacting all of us these days. As we all know, the US is suffering through one of the worst recessions in our nation s history. The construction industry has been particularly hard hit due to the fact that housing and private buildings of all types were overbuilt in the recent boom years, coupled with the fact that financing for new projects remains extremely difficult to secure. In the last year or so we have seen a significant downturn in the availability of privately-funded work to bid, and only a slight increase in the availability of publicly-funded work. We are fairly confident that our competitors have gone through a very similar experience, since an industry-wide crisis like this is nearly impossible to hide from. The good news for Anderson Drilling is that the situation appears to be stabilizing and things are at least not getting any worse. We seem to be winning our share of work of late, and it looks like we will be busier through this summer than we have been for some time.

Some additional good news is that Keller remains in a very sound position and committed to Anderson Drilling. Keller is the world s largest foundation contractor, with businesses similar to Anderson Drilling all over the world. Many of these businesses have not been affected as sharply by the recession as we have here in the US. Keller s global diversity and prudent business practices means that it is stable and well positioned to ride out the recession. Nobody knows how long it will take for things to get completely back to normal at Anderson Drilling or in the US economy as a whole. But for now, we are stuck with the difficult task of working harder than ever for less return. Rest assured, we are in this together and appreciate the hard work and understanding of our employees during these difficult times. Above all else, know that Anderson Drilling and its parent, the Keller Group, are in this business for the long haul. We have the people, financial backing and attitude to weather this storm and we will do so. Our continuing mission is to keep Anderson Drilling the leader in our field by being the kind of place where people like you want to build a successful career and enjoy doing it. Dan Cadenhead


QUARTERLY NEWSLETTER be #1 in the eyes of our employees & our customers. Anderson Drilling offers Equal Employment Opportunities

Rocky Mountain District Author: Ira Long, Project Manager Project: Union Station Underground Bus Tunnel Location: Denver, CO Owner: City & County of Denver General Contractor: Kiewit Western Solution: Soldier Beam -Tieback Retaining Wall System The bus tunnel is part of a $1.6 billion redevelopment effort to Denver s Historic Union Station. Kiewit Western is constructing an underground tunnel to allow pedestrian, bus and public transport to access the station without impacting existing railroad and light rail traffic. A new light rail terminal for the West and East Fast Track projects are also part of the project. Anderson Drilling is performing a design-build contract that includes 25,000 SF temporary shoring. Additionally, we will construct over 19,000 LF of drilled shaft foundations to support the Bus Box and LRT Stations. Our contract also includes the installation of (130 ea.) OCS foundations. We have currently completed Phase 1 of the shoring on the project which totals 16,000 SF between two walls. Excavation depths range from 21-24 vertical feet. The LRT wall shoring design utilized back-to-back C12 x 20.7 channels with tieback anchors positioned through the center of a built up beam. This configuration allowed the tieback to be moved as-needed due to existing on-site utility conflicts and obstructions. The LRT wall tiebacks consist of 2/3 strand cable anchors, 30-feet in length, installed at a 15 degree angle. Each anchor was tensioned to 92 kips. The east wall underpins Wewatta Street with traffic running 5 feet from the top of shoring wall. Here, our system utilizes W16 x 36 beams with anchor pockets positioned at 20 degrees. The 2/3 strand, 35-feet long anchors were installed using fulllength casing due to caving ground conditions, and stressed to 98 kips. All of the lagging was installed using a face lagging system. Los Angeles District Author: Kelly Shofner, Project Manager Project: Glassell Park Apartments Location: Los Angeles, CA Owner: Adobe Communities General Contractor: Turner Construction Solution: Soldier Beam / Tieback Anchors /Raker Braced Earth Retention In late 2009 Turner Construction solicited Anderson Drilling to become part of their construction Team on this challenging design-build project. The project consists of a multi-story apartment complex with subterranean parking, located in the Glassell Park neighborhood of East Los Angeles. Our scope included performing design-build services for a subterranean shoring system. Existing neighboring residential structures and eventual adjacent new construction necessitated a rather elaborate combination of earth retention techniques, including tieback anchors, raker bracing and cantilever system to shore vertical excavation depths that ranged from 6 to 31 feet in depth. The entire Construction Management Team, from design to installation, adapted to the un-anticipated conditions during the construction process including; unexpected extremely dense drilling conditions and higher than expected groundwater levels. Through the coordination of Anderson Drilling s in-house Design Engineer, Mike Empizo and geotechnical assistance from our Director Business Development, Dennis Poland with the Turner Construction Manager, and the quick responses from our site superintendents, we have been able to modify our design and keep the project moving forward for our client, resulting in a successful, cost-effective earth retention system.

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Southwest District Author: John Yusunas, District Manager Project Name: High Gain Solar Power Plant Location: Nipton, CA Owner: Skyline Solar Contractor: Bull Concrete Solar power has gotten a lot of press lately, especially in the Southwest region. Anderson Drilling is doing its part to participate in the sustainable energy push when these systems require deep foundation solutions. Nipton, CA. is the site where Skyline Solar, a manufacturer of High Gain Solar (HGS) arrays for commercial, industrial, government and utility markets installed its first commercial power plant. Situated at the edge of the Mojave Desert, Nipton is about an hour west of Las Vegas, NV. The upgradeable, 80Kw solar power plant will provide about 85% of the electricity needs to the tiny little town. They will be able to boast the highest percentage of solar electricity of any town in the United States! Anderson Drilling s contract included the excavation of (52 ea.) 24 diameter x 6 feet deep piles. We performed this utilizing our Watson 3100 truck drill unit. San Diego District Author: Michael Kennedy, Sr. Project Manager Project: San Luis Rey River and Ostrich Creek Bridges Location: Oceanside, CA Owner: Caltrans Contractor: Flatiron Construction, Inc. Anderson Drilling is currently performing Cast-in Drilled-Hole (CIDH) pile work for the southern California office of Flatiron Construction. The drilled piles will support two new bridge structures along the SR76 corridor as part of the on-going highway expansion project (Melrose Drive in Oceanside to South Mission Road in Bonsall). The expansion is deemed necessary to meet anticipated growth along this busy north county traffic corridor. Funding sources for the project include: American Reinvestment and Recovery Act (ARRA), Federal Demonstration funds, State contributing funds and TransNet sales tax. Anderson Drilling was contracted via low bid procurement means. Our scope includes drill / set / pour for all the CIDH piles. Subsurface ground conditions include, high groundwater, loose-dense alluvium overlying weathered to fresh granite bedrock. The strength of the granite rock was measured between 10,000 and 20,000 psi. The (20) foundation piles at the SLR bridge measure 1.8M-2.7M (6-9 Ft) in diameter up to 28.5M (93.5 ft) in length. Caltrans designed the bent piles with 4.8M - 6.4M (16-21 ft) rock sockets and abutment piles with 1.8M - 2.6M (6.0-8.5 ft) rock sockets. The (17) foundation piles supporting the new Ostrich Creek Bridge consist of 1.5M (5 ft) diameter shafts up to 16.7 M (55 ft) in length. Rock sockets ranged from 2.6M - 6.0M ( up to 20 ft). Well known for our hard rock drilling capabilities, we decided to approach the initial piloting of our rock socket a little different than our usual air-barrel and core system instead using a new 48-inch diameter Down-the-Hole hammer (DTH) from Atlas Copco. The hammer, guided by our SoilMec SR100, proved to be a very efficient approach to removing the rock socket center allowing us to use several new full-face cutter tools designed and built through Anderson Manufacturing to remove the remaining rock, effectively reaming the hole to the designed diameter. Hole stability was effectively mitigated using full length steel casing in each shaft.

VOLUME 16, ISSUE 2 Page 3

Anniversary Dates

Employee Area Date of Hire Years April Michael Kennedy SD 04/01/99 11* Jesus Perez RM 04/02/91 19* Stephen Behrens RM 04/02/02 8* Thomas Sparling Corp 04/04/08 2* Kenny Schaff SD 04/06/06 4 Favian Sandoval LA 04/07/03 7* Michael Blanchard Corp 04/10/06 4* William Zbacnick SD 04/10/08 2* Wyatt Nading SW 04/11/08 2* Daniel Bensen RM 04/14/08 2* Rodolfo Hernandez LA 04/14/08 2* Sean Morgan SW 04/16/03 7 Blake Kahler SD 04/17/08 2* William Poston SW 04/26/01 9 Brian Vesey SW 04/26/04 6* James Reed RM 04/26/02 8* Paul David SD 04/28/86 24* May Maegan Riley Corp 05/02/03 7* John Yusunas SW 05/02/91 19* Michael Akhtar SD 05/03/07 3* Kevin Osborne SD 05/06/91 19* James Forcier SD 05/09/05 5* Jerry Edison MFG 05/10/05 5* Pablo Gonzales LA 05/11/05 5 Daniel Cadenhead Corp 05/12/78 32* Steffanie Charlesworth Corp 05/12/08 2* Nicholas Riely Corp 05/13/05 5* Curtis Smith SD 05/13/86 24 Richard Jordon SW 05/14/92 18* Victor Smith SD 05/14/86 24 Ernesto Enriquez RM 05/19/03 7 Mark Foos RM 05/20/91 19* Joshua White SD 05/23/05 5* Shea Abraha SD 05/24/06 4* Bennie Dollins SD 05/26/04 6* Patrick Anderson LA 05/30/96 14* Tommy McBride MFG 05/31/05 5* June Josue Burgueno SW 06/04/91 19 Adam Hinton NC 06/05/06 4* Sergio Alfaro SD 06/07/04 6* Paul Lesmeister SD 06/07/04 6* Kevin Barney SW 06/09/09 1* Armando Garcia SD 06/10/05 5* Nefi Calvo SW 06/17/09 1* Michael Waldren RM 06/22/92 18* Joshua Gilliland SW 06/23/09 1* Donald Kahler SD 06/25/04 6* Tony Ogle LA 06/26/09 1* Marissa Houston SD 06/28/05 5* Bernard Martin SD 06/29/05 5* Thanks everyone for your dedicated service. *Continuous employment **Please note that the anniversary dates are from date of hire only and are not connected to the Length of Service Program.

Anderson Drilling Welcomes Bret Rowan

The L.A. District recently welcomed a new member to their Project Management team, Bret Rowan, formally with Malcolm Drill of San Diego. Bret has been in the drilled foundation industry for over 15 years. He was born in Merced, CA and for the past 12 years has resided in Fallbrook, CA with his wife Stephanie and two children, Jake (8 yrs old) and Erin (9 yrs old). Bret comes from a large extended family, but only has 2 siblings, one of which is our own Christie Rowan, Anderson Drilling s Director of Contracts. Bret s interests include football, gardening, food, and firearms. He enjoys playing with his kids, cooking / Bar-B-Qing and playing Play Station 3. We are excited to welcome Bret to the Anderson Drilling family. Curt Swain

The L.A. district recently added a new Superintendent to their production team. William Curtis ( curt ) Swain, formally with Malcolm Drilling of Las Vegas, has been in the drilling industry for 7 1/2 years. Curt was born in Long Beach, CA and for the past 6 years has resided in Las Vegas, NV with his wife Regina, four children, Makani (3 yrs old), London (4 yrs old), Brendon (28 yrs old), Starr (32 yrs old) and one grandchild, Tessa (3 yrs old). Curt comes from a small family and enjoys boating and skiing. We are excited to welcome Curt to the Anderson Drilling family.

DRILLING TIMES is published quarterly. Send information, articles or requests to be placed on our mailing list to: ANDERSON DRILLING c/o Mary Webb 10303 Channel Road Lakeside, CA 92040


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