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. Page 2 of 3 <br /> On behalf of Frontier Transportation, we acknowledge receipt of your letter directive of <br /> December 17, 2012 (enclosed). <br /> It says, "EHD directs that the second phase of the previously approved 30-day DPE <br /> remediation events be implemented immediately.... You may discontinue the DPE event if <br /> the mass recovery rate drops to less than one pound per day.... EHD considers it <br /> premature to discuss closure consideration of this site under the low-threat case closure <br /> policy at this time." <br /> A quick analysis of anticipated costs provides (in an approximation of+/-15%): <br /> 1. Continue operation of the extraction in the original, mobile-unit mode, cost per one <br /> 30-day event: $115,000 <br /> 2. Moving to a permanent system: <br /> • Option 1: Monthly Rental of the System <br /> I. Design, installation and start-up: $96,000 <br /> ii. Operation, maintenance, engineering supervision and reporting: $62,000 <br /> per quarter <br /> • Option 2: Purchase of the DPE Unit Upfront <br /> i. Design, procurement, installation and start-up: $186,000 <br /> ii. Operation, maintenance, engineering supervision and reporting: $47,000 <br /> per quarter <br /> The enclosed two charts depict the rate of extraction (in lbs./day) in the original 30-day <br /> event. We see it starting above 250 and dropping to below 10 at the end. It is reasonable to <br /> expect that the next 30-day event will start below 200 and finish under 10; however, at this <br /> juncture it is impossible to know if such one event will arrive stably to 1 Ib./day, or how <br /> many more events will be required to get there. <br /> Accordingly we ask for the following clarifications: <br /> 1. How hard is the 11b./day number? Is it negotiable? Can it be raised to 10 lbs./day? <br /> 2. How stable must the target daily-output-rate be? Will it be enough to reach it once, <br /> or will rebound tests be demanded to demonstrate long-term stability? <br /> Fast answers on the above questions will enable us proceed immediately with planning of <br /> the next steps. <br /> Thank you much for your attention and time. <br /> Sincerely, <br /> Ami Adini <br /> Principal Project Manager <br /> &X <br /> Ami Adini <br /> President <br /> Ami Adini &Associates, Inc. <br /> 4130 Cahuenga Blvd., Ste. 113 <br /> Los Angeles, CA 91602 <br /> 1/23/2013 <br />