a w Washington State Department of Transportation Lynn Peterson Secretary of Transportation Alaskan Way Viaduct Replacement Program Offi ce 999 3'd Avenue, Suite 2424 Seattle, WA 98 104 206-805-2987/ fax 206-805-2899 TTY: 1-800-833-6388 www.wsdot.wa.gov January 14, 2016 Seattle Tunnel Partners 999 Third Avenue, Suite 2424 Seattle, WA 981 04 ATTN: Chris Dixon Subject: SR 99 Bored Tunnel Design-Build Project Contract No. 007999 I Federal Id No. BR-NH-STP-STPF-0099(111) Suspension ofTunneling Operation for Cause WSDOTRef: W -G-GEN-TUN-CR14-0005025-0 1 Dear Mr. Dixon, This letter is written per Contract Section 14.2, Suspension for Cause, to direct STP to suspend tunneling operations involving the TBM, including the loading of barges at the Site, until such time as WSDOT lifts the suspension in writing. WSDOT has determined that STP has failed to correct conditions unsafe for the Project personnel or general public, and failed to comply with Governmental Approvals, Law, or otherwise catTy out the requirements of the Contract Documents. Therefore, WSDOT has the authority to suspend work for cause, pursuant to Contract Sections 14.2 (a) and 14.2(b) and Technical Requirements Section 2.52.7.3.5. On the night of January 12, 2016, a sinkhole was detected over the tunnel. The full extent of ground loss is not yet determined and settlement is increasing. STP has yet to provide a detailed analysis of the cause of the observed ground settlement, or a plan for modifying twmeling operations to ensure positive ground control at all stages of twmeling (TR 2.32), and to prevent settlement outside of tolerance in the future (see TR 2.52). On Tuesday January 12, 201 6, STP's barge filling operation resulted in a barge listing beyond STP's control. As a result the barge was either let go or broke free from the pier, spilling twmel spoils into Elliott Bay, and drifted out of control damaging both Terminal 46 and Pier 48. These events created an unpermitted spill of material and posed a hazard to project personnel and the public. WSDOT requests a meeting with STP within 24 hours to address this matter. Nothing in this letter shall be considered as an acceptance by WSDOT of STP's positions in these matters, nor shall it be considered as a waiver of any Contract requirements. All Contract requirements remain in full force and effect. If you have any questions, please contact me at (206) 805-5426. rian D. Nielsen, R AWV Deputy Prog am Administrator SR99 Tunnel Contract Director BDN-PEN/kat cc: File, Alaskan Way Viaduct Replacement Program W-G-GEN-TUN-CR14-0005025-0l 2