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1. H. KLEINFELDER & ASSOCIATES PROJECT COSTS Project Management and Administration $ 500.00 Soil Borings and Sampling $2,570.00 Analytical Services* $1,020.00 3 Samples for TPH by EPA 8015 and BTR by 8020 Report of Findings $ 700.00 TOTAL COST x_790.00 FEE ARRANGEMENTS AND S®ULE We propose to perform these services on a time-and-expense basis according to our January 1986 Fee Schedule, a copy of which is enclosed. At the present time we are in a position to begin on this project in approximately two weeks following a notice to proceed. AUTHORIZATION Enclosed is a copy of our Standard Environmental Services Agreement. Receipt of an approved copy of the agreement and a retainer in the amount Of $1,000 will serve as our formal authorization to proceed. CONTINGENCIES J.H. Kleinfelder is willing to proceed with the described scope of work based on the following contingencies: I. J.H. Kleinfelder will not be responsible for disposal of drill cuttings or restoration of the concrete surface. Our firm will backfill the borings with neat cement to preclude infiltration of surface runoff into the borings. 2. Pacific Coast Producers will locate and mark any subsurface utilities and indemnify Kleinfelder for damages or repairs occurring to any such utilities during our drilling operations not properly located. 3. Pacific Coast Producers will secure approval of our plan and any necessary permits for the San Joaquin Local Health District including 48 hour prior notification of our field operations. 4. Changes in the described scope of work by the Health Department or access limitations may affect costs beyond our control. We will not exceed the cost estimate shown by more than 15% without prior notice and written justification. * The price increase over our verbal quotation is due to the inclusion of 8015 and 8020 analysis. Our original quotation assumed that Hydrocarbon analysis by infrared analysis would be sufficient at a cost of approximately $300 for the three samples. Subsequent conversations with the San Joaquin Local Health District confirmed the necessity of expanded analysis. 36-87-1057 3