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The Divisions options at this point are as follows: 1. Go with Minerals Inc. bid at $296,854. Work with the Contractor and the Railroad on the specific language of the agreement. This would leave roughly $80,000 for the remaining work at the Hawk's Nest Mine. 2. Re-bid the Hawk's Nest Project with the following changes: a) Change the specifications to allow for other ways to bring down the silos rather than blasting (Western Slope Flagstone proposed to saw down the structures using cement saw.) b) Possibly get the AG's office involved in the review of the Railroad Right of Entry Agreement. Recommend Seniors get involved with dealing with the Railroad. c) Sid out the project for January or February, or a slower time of year for the mine (Spring). In recent discussions with the mine, only the outside track used for loading should be closed for no more than 48 hours, while the track going through the silos could be closed for a week to two weeks. The track going through the silos is only used to move the engine from one side of the trains to the other. It is possible that the engine can be switched somewhere else or push the trains out. This needs to be worked out with the mine and the Railroad. Re-bidding the work may allow for more competitive bids and possibly bring the cost down to $250,000 which would leave the remaining bond at around $125,000. Remaining works involves removal of the coal at the silo area, topsoil replacement, revegetation, removal of four (4) barrels of potentially hazardous material, sealing and plugging a number of de-gas wells, and maintenance costs. Currently, DMG is holding roughly $375,000 for the Hawk's Nest Mine. Please let me know what your thoughts are on this matter. Discussing this issue with Paul Krabacher, Jim McCardle and Maggie VanClef of AML and Bob Norndorf of Purchasing, a re-bid of the job would be the alternative. m:\coal\esc\hawk\931104b