August 3, 2005
Mr. Keith Raybould
MBARI
7700 Sandholdt RD.
Moss Landing, CA 95039-9644 
TEL: 831-775-1756
FAX: 831-775-1646

Revision 2

Environmental Crossings, Inc. Job No.: 05-5041

RE: Monterey Bay Aquarium Research Institute's MARS HDD Project in Moss Landing, CA. Environmental Crossings, Inc. to drill one (1) crossing up to 4700 linear feet in a jettable formation of silts/sands and leave in place one (1) 3.75-inch ID drill pipe.

Environmental Crossings, Inc. is pleased to submit the following quote on the above referenced project, subject to the following terms and conditions:

Responsibilities of ENVIRONMENTAL CROSSINGS, INC.:
ECI agrees to:
1. Provide ECI drilling rig, associated equipment and personnel for the HDD project.
2. Mobilize and demobilize ECI equipment and personnel to and from the job site. 
3. Provide ECI guidance system and operator for pilot hole alignment.
4. Provide on site drilling profile plan and final As-Built for owner's records.
5. Provide a certificate of insurance to the Contractor/Owner.
6. Provide ECI pay scale to all ECI hourly personnel.
7. Provide hauling and disposal of drill fluids and cuttings.
8. Provide excavator and backhoe at entry.
9. Provide all 3.75-inch ID milled drill pipe on HDD project.
10. Provide all erosion control.
11. Provide rough site restoration.
12. Flange and adapter acceptable to Alcatel together with Tide Flex valve coupling installed on exit end of drill pipe.

13. Provide marine support including divers and boat based upon water depth of up to 50 feet. No decompression chamber included in price furnished which is needed at 75-foot water depth.

Responsibilities of Owner - MBARI

Owner, at no cost to ECI agrees to:

1. Locate and mark all existing utilities prior to commencement of work by ECI. ECI will not be responsible for the damage to any unmarked utilities.
2. Obtain all necessary permits, licenses and permission from all authorities and private landowners prior to commencement of work.
3. Provide suitable work site and access for trucking ECI equipment to job site including mats, if required. 
4. Provide fresh water to within 300 feet of the job site. 
5. Be responsible for handling and disposing of contaminated soils or water encountered in the borehole during the drilling operation.	.
6. Provide any security on site, if required.

QUOTE ON ABOVE REFERENCED PROJECT:

Total Lump Sum									$402,777.00

No provisions for downhole motors or assemblies for handling rock formations are included in this price. If encountered, a renegotiated footage or day rate will apply.

Note:	1. Since ECI is not aware of any additional permit conditions that would affect our costs at this time, ECI reserves the right to request additional compensation for any permit conditions or regulatory requirements that result in added costs, which we are not aware of at the time of this proposal.

2. ECI has budgeted one-day weather standby time for drilling operations only. Since an exact construction time frame has not been established, we cannot get a historical feel for sea state conditions at time of construction. Any standby for drilling AFTER one day of standby will be charged at the standby rate in item 3 of General Conditions.

3. Above price includes $35,000 in estimated marine support. If MBARI wants to be responsible for the marine support directly, a credit of $35,000 will be applied to the drilling price.

This proposal is confidential and the property of Environmental Crossings, Inc. It is intended for the exclusive use of the addressed only. Reproduction and/or redistribution is not permitted without the written consent of Environmental Crossings, Inc.

General Conditions:

1.  Payment
Terms - Net 30 days after completion of field activity: 1 ½ % per month finance charge.

2.  Crew Availability

30 days from Notice to Proceed. ECI will use best effort to furnish our 330,000-pound push/pull drilling rig, if available. In any event ECI will furnish an adequate drilling rig for this project.

3.  Delays and Work Stoppage
Standby rate of $12,500.00 per day (10-hour day) for the drilling crew and
$4,600.00 per day (8-hour day) for the marine subcontractors applies to all delays and work stoppages, which arise through no fault of Environmental Crossings, Inc.

4.  Back Charges

Any back charges to Environmental Crossings, Inc. will be verified, authorized and signed at time of said charges, by ECI project manager.

5.  Changes in Procedures

Environmental Crossings, Inc. has based our bid working 12 hours per day and seven (7) days per week, but if conditions warrant, we reserve the right to work as necessary to safeguard the project or the downhole equipment.

6.  Obstructions/Change in Site Conditions

All additional costs resulting from client errors in information or omissions and man made or natural obstructions encountered requiring substantial deviation from specifications are charged on a cost plus basis.

7.  Bonding

ECI certifies that we can furnish a performance bond, if requested, at an approximate price of $10,000.00. Pricing based upon current quote of 2 ½ % of contract price.	

8.  Time is of the Essence

Our proposal will remain firm for 60 days and is predicated upon a mutually agreeable contract and rig availability, unless extended in writing by Environmental Crossings, Inc.

9.  Formal Agreement

Upon acceptance of this quotation, have an authorized representative sign and return one copy to Environmental Crossings, Inc. Final operating agreement subject to Environmental Crossings, Inc. credit approval of client.

10.  Patent License

Environmental Crossings, Inc. is a registered licensee of the nationwide Horizontal Directional Drilling method patent abiding by all legal terms and conditions of the patent.

Environmental Crossings, Inc. appreciates the opportunity to furnish you a quotation on this project and looks forward to working with you.

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