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09/11/2001 11:42 71463267 EAI • PAGE 07 <br /> Flug 29 01 11 : 02a R '< Management 20 954 5066 p• 7 <br /> Although the irrigation well was abandoned (Aug. 2001) using state of the art <br /> methods, there is no method to determine the impacts of 50 years of pumping <br /> sand on the adjacent formations. There may be pockets that extend out from <br /> the well several hundred feet that now have a weak structure. <br /> Constructing a new well in the vicinity of the existing well may be risky. Should <br /> the drill encounter a pocket of loose material, the drilling fluid may breakdown <br /> and the drill may loose circulation. The cost to recover from this type of problem <br /> may be 20-30% of the original cost of the well. <br /> From discussions with the well driller that abandoned the existing well,the cost of <br /> drilling a new well adjacent to the existing well would include a significant <br /> contingency for unforeseen events. <br /> In addition, the existing well sits within a plume of hydrocarbon contamination. In <br /> order to construct a new well in the same area, drilling will have to penetrate the <br /> contaminated area. The potential risks from this activity are unknown, but it is <br /> clear that water from the contaminated zone will enter the new well during <br /> construction. <br /> Drilling a new well away from the existing well site would not be subject to <br /> possible problems and therefore no additional cost contingency would need to be <br /> included. <br /> The cost of providing electrical power to the well site and conveying water to <br /> existing irrigation main lines is where development costs vary between sites. <br /> Sites further from service points will be more expensive to develop than sites that <br /> are closer. <br /> Assuming that alternate site 1 is chosen, following is the estimated cost for the <br /> entire project: <br /> ITEM IQLJANT17Y UNITS DESCRIPTION I UNIT$ AMOUNT <br /> SCHEDULE I-WELL <br /> 1 200 IF 36"WELL BORE $150,00 $30,000 <br /> 2 200 LF 30"CONDUCTOR CASING $31.00 $6.200 <br /> 3 200 LF SANITARY SEAL $225.00 $45,000 <br /> 4 Zoo LF 2e"WELLBORE $110,00 $22,000 <br /> 5 350 LF 16"BLANK CASING $70.00 $24,500 <br /> 6 50 LF 16"PERFORATED CASING $85.00 $4,250 <br /> 7 400 LF GRAVEL PACK $30.00 $12,000 <br /> 8 i EA, DEVELOPWELL $4,00.00 $4,000 <br /> 9 1 EA. DISPOSE OF DEVELOPMENT&TEST WATER $2,500.00 $2,500 <br /> 10 1 EA. WELL HEAD&PUMP PEDESTAL $2,500.00 82,500 <br /> 11 1 EA. TEST PUMP WELL $100.00 $100 <br /> 12 2 EA. WATER QUALITY SAMPLES $525.00 $1,050 <br /> TOTAL SCHEDULE:----•> $154.100 <br /> 3 <br />