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Colorado Westmoreland, Inc. Page 2 • July 22, 1981 At the conclusion of Phase 2, a final report would be prepared by Geo- Hydro Consulting, Inc. This report would summarize all data and the results of all studies regarding the integrity of all areas of the overall site including the proposed waste disposal pile. In addition, it would provide design data and recommendations required for the third phase of this project. This report will also serve Colorado Westmoreland management es a guideline for any remedial measures which may be required for the present facilltles. After Colorado Westmoreland completes their review of this report, Merrick & Company would print and bind twenty (20) copies of the report in a preprinted three- ring binder in an appropriate form approved by Colorado Westmoreland officials.,. Schedule Both Merrlek do Company and Geo-Hydro Consulting, Inc. would be able to commence work on the proposed Phase 2 studies promptly after receipt of your acceptance of this authorization to proceed. It is expected that about two weeks would be required to mobilize the drilling crew. It is expected that a draft report on the Phase 2 studies would be completed in about four months. Another month should be allowed for review, corrections, reproduction, and binding. • Cost Estimate Merrick do Company proposes to provide the services outlined above on a Time, Materials and Reimbursable Expense basis. We have estimated that Merrick do Company's fees for Phase 2 would not exceed A detailed breakdown is attached. Our estimate does not include the cost for the services of Geo-Hydro Consulting, inc., or the costs for drilling and testing. These services are to be contracted directly with CWI and as such separate proposals have been prepared and submitted by these firms. Bid We will bill you monthly for services and Reimbursable Expenses. Payments are due within 30 days of Owner's receipt of invoice. Additional or extra services requested by the Owner will be charged on the basis of time and materials plus reimbursable expenses, as shown in the printed General Provisions. The above financial arrangements are on the basis of prompt payment of our bills and the orderly and continuous progress of the Project. Services are to be rendered in the phases noted herein which, together with the general understandings applicable to our relationship with you, are set forth !n the pr[nted General Provis[ons attached to the original Letter of Agreement signed July 10, 1981. Your particular responsibilities are also set forth In these General Provisions.