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� <br />May 6, 2008 <br />Greg Trainor, Director <br />Utility and Street Systems <br />City of Grand Junction <br />250 North 5`h Street <br />Grand Junction, CO 81501 <br />� <br />Subject: 2007/2008 Energy Needs Assessment Project Status — Request for <br />Amendment to Phase 1 <br />Dear Mr. Trainor: <br />First and foremost, URS would like to extend their sincere apologies, for the way the <br />April 28, 2008 Energy Subcommittee ended and for the lack of clarification at that time <br />in helping the group understand the accounting error and deliverables for our scope of <br />work. <br />To date, URS has made great progress on this project, focusing primarily on defining a <br />range of planning horizons and production scenarios for oil shale (in situ and surface <br />retort), natural gas, coal and uranium energy development processes, specifically as it <br />relates to the potential for these resources to develop in the project area, northwest <br />Colorado. URS' work to date has met the objectives of their scope of work, with the <br />exception of the Draft and Final Letter Reports. In addition, URS has completed the <br />following out of scope tasks not originally outlined in the October 2007 scope of work <br />for Phase 1, however were conducted to meet both the short-term and long-term needs of <br />the project: <br />• Working Session with the Energy Subcommittee to discuss the initial results of <br />the planning horizons and production scenario development, in addition to the <br />initial water demand information to support these scenarios. This Working <br />Session was held at the Colorado River District Office on February 15, 2008. <br />• Sensitivity Analyses to assess the water demands for the development of uranium, <br />coal gasification/liquefaction, electrical demands from the worker/indirect <br />population, opening of the White River Mine, and natural gas development along <br />the Hwy 64 and 40 corridor. <br />• Development of unit water demands to support the development of oil shale, <br />natural gas, coal and uranium in Western Colorado. <br />The above items required additional time and an additional $6,000 to complete. <br />URS Corporation <br />7l3 Cooper Avenue, Suite 100 <br />Glenwood Springs, CO 81601 <br />