Laserfiche WebLink
<br /> <br />EXHIBIT 1 <br />1985 DRILLING PROGRAM RECLAMATION COSTS <br />Activity Cost <br />1. Regrade Drill Pads <br />Assume 2 hour grade time/site <br />Assume backfill/regrade mud pits at the same <br />time <br />Use small dozer @ $65/hour <br />13 sites x 2 hour/site x $65/hour $1,690 <br />2. Regrade Limited Road Cuts <br />Assume 2000' total road cuts <br />Assume 500'/hour regrade time <br />2000' x 1 hour/500' x $65/hour 260 <br />3. Reseed Drill Pads and Roads <br />Assume Seeding Costs=$250/acre <br />Assume Averaae Drill Pad=25'x30'=0.017 acres <br />Assume Disturbed Road Width=8' <br />Disturbed Road acreage=8'x2000'=0.367 <br />(0.017+0.367) acres x $250/acre 96 <br />4. Assume Hydromulching Costs=$200/acre <br />0.384 acres x $200/acre 77 <br />5. Sealing Wet Holes with Abandonment Fluid <br />13 holes to be sealed <br />Average hole depth=1500' <br />Fluid:$0.10/galxlgal/ft.x13 holesx1500'/hole <br />Equipment:$20/hr.x2hr/holexl3 holes <br />Labor:$10/man-hour x 4 man-hours/hole x 13 holes <br />Rig Time:$70/hr.x2 hrs/hole x 13 holes <br />Water Truck:2 hrs/hole x $25/hr. x 13 holes <br />Total Sealing Costs 5,460 <br />6. Plugging Holes <br />Non-slip plug: $1.00/plugxl plug/holexl3 holes <br />Cement:3 sacks/holex$5.00/sackxl3 holes <br />Labor:$10/hr.x2 man-hours/holexl3 holes <br />Total Plugging Costs 468 <br />7. Mobilization Costs <br />Assume $200 200 <br />TOTAL RECLAMATION COST ESTIMATE $8,251 <br />