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MINERS INC• <br />CONSTRUCTION SPECIALISTS <br />MINING and CIVIL CONSTRUCTION <br />January 24, 1994 <br />Delta-Montrose Electric Assoc. <br />P.O. Box 59 <br />Delta, CO 81416 <br />Attention Kent E. Davenport <br />Subject: Hawks Nest Coal Silo Demolition <br />Gentlemen; <br />III IIIIIIIIIIIII III <br />The purpose of this letter is to further define verbal agreements made between Delta- <br />Montrose Electric Association (DMEA) and Miners Inc. (Miners) in relation to the demolition <br />of the Hawks Nest Coal Silos. <br />Miners anticipates that the State of Colorado will issue a Notice to Proceed on January 31, <br />1994. Miners will mobilize on to the Hawks Nest site immediately. <br />The enclosed schedule is a revision of the schedule that was given to you at our meeting on <br />January 13. Please note that the revised scheduled time for blasting Silo #1 and Silo #2 is <br />on February 11 and 18, respectfully. <br />It is our understanding that you will have crews on site and on standby during these periods. <br />The crews will consist of one four man power line crew and one two man substation crew. The <br />estimate of costs are $200 per crew hour for the power line crew and $100 per crew hour <br />for the substation crew. A Four hour minimum is assumed for each crew per each silo. This <br />four hour period assumes no damage to any power line or substation items. Additionaly DMEA <br />has chosen to configure the Transformer at the substation on "one shot." Miners assumes that <br />this will serve to prevent any damage and is dependent on the knowledge of DMEA. <br />Miners will assume responsibility for damage to the power lines or substation items if the <br />blast results in a peak particle velocity that exceeds two inches per second as defined in the <br />project specifications. <br />Miners has contacted an engineer with Public Service of Colorado about possible damage that <br />could result to the transformer from excessive vibration. He stated, in his opinion, that <br />provided the transformer was set on a solid foundation no damage should result from <br />vibration. <br />Miners is anticipating conducting a preblast survey at the site on February 7 and 8. We will <br />contact John Sulkey at 874-2365 for access to the substation for inspection. <br />9137 F.. Mineral Circle <br />F,nglewood, Colorado 80112 <br />Phone: 3031.90-4840 • FAX 303/790-4550 <br />