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05/ 25/ 2007 13 : 28 92531303 _. GREGG DRILLING - PAGE 04 <br /> i <br /> k- <br /> i <br /> Page 3 <br /> Mr, Evans <br /> May 25, 2007 <br /> P <br /> Task 4: Well Develooment j <br /> Mobilization/Demobilization/Daily Travel <br /> 1 day @ $400. 00/day $400.00 <br /> Development Services (includes rig, development equipment, i, <br /> and water quality meters, not materials) to include: <br /> Develop by surging, bailing & pumping one, i <br /> two-inch monitoring well to a depth of 110 <br /> feet <br /> '/z day @ $900.0011A day $900000 ! <br /> i <br /> Drum for development water <br /> 1 drum @ $55.00/drum 55.00 <br /> TOTAL Task 4: $11356.00 <br /> I <br /> ASSUMPTIONS: G <br /> Level D safety protection i <br /> Site accessible for equipment ! <br /> 4 <br /> Asphalt surface <br /> Water available on site <br /> Daily rate includes up to ten hours per day ornske i <br /> %a day rate includes up to five hours per day on-site <br /> i Additional time will be billed at rig race plus $35.00/per man, per hour <br /> *ATC to provide bin for mud <br /> 4 <br /> TERMS and CONDITIONS: <br /> The preceding costs represent our best estimate for the tasks, as we understand <br /> them. The cost estimate does not reflect additional charges which would be <br /> i incurred for standby time or adverse drilling conditions. The cost estimate does <br /> not include any taxes that may be charged. The client will be responsible for <br /> obtaining the necessary permits and for the clearance of underground utilities, <br /> The client will provide copies of USA notices to Gregg Drilling at least 72 hours <br /> i' prior to start of work so that we can use information contained in those notices to <br /> also notify USA, as required by law. Gregg Drilling will not be responsible for any <br />'t damages to underground utilities. Client will be Invoiced following completion of <br /> the work; all bills are due and payable within 30 days of the data of the invoice. <br /> Invoices not paid within 30 days will be subject to a 1 .6% per month finance <br /> charge. <br /> i <br /> i <br /> f <br />