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Mr. Jim Thompson <br /> December 28, 1986 <br /> Page Three <br /> I have attached a cost estimate for the four tasks. Please <br /> note that, due to the uncertainty of the number of wells to be <br /> installed and to be plugged, that a hard money estimate can not <br /> be provided. The individual cost estimates by task do not <br /> include the cost of surveying and driller costs. We have <br /> estimated these costs, but they are itemized separately and those <br /> subcontracted items are to be paid separately by Kayo. If you <br /> have any questions or comments, please free to call. <br /> Yours very truly, <br /> GMS & Associates <br /> Rex D. Meyer, R.S. <br /> Gregg M. Gibbs, P.G. <br /> cc: Charley Downs - Conoco, Houston <br /> RDM/lo:pchlodi.kay <br /> GMS & ASSOCIATES <br />