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<br />08/30/2006 16:48 FAX 4084532543 <br /> <br />GEOCONSULTANTS <br /> <br />141002 <br /> <br />Mr. Javier Sierra <br />August 8,2006 <br />Page 3 <br /> <br />however, the results are favorable, then the production well design and construction <br />may begin immediately_ The following paragraphs describe the tasks in greater detail. <br /> <br />PHASE 1 - TEST HOLE CONSTRUCTION AND ANALYSIS <br /> <br />Task 1 - Technical Guideline Specifications <br /> <br />We will prepare technical guideline specifications, a site location map, proposed <br />well construction diagram, "engineers" estimate of probable cost, and bid sheet for <br />completion of the test hole drilling/production well construction and testing. We will also <br />review the bids from drilling contractors that are received. <br /> <br />Task 2 - Test Hole Drilling Observation <br /> <br />During the test hole drilling operations, a representative of our firm will be on- <br />site at critical times to observe the drilling and document the subsurface conditions. <br />Our representative will geologically log samples of the cuttings taken at 10-foot <br />intervals by the driller. As part of this task, sieve analyses as applicable will be <br />performed on selected samples to aid in the lithologic evaluation and to assist in <br />selectrng screen size in the production well. <br /> <br />Task 3 - Electrical Log Evaluation and Well DeSign <br /> <br />Following completion of the test hole drilling, an electricalloQ, consisting of <br />resistivity, spontaneous potential, and a natural gamma ray log may be performed in <br />the test hole, if rotary-mud drilling should prove necessary. The logs will be reviewed <br />and interpreted for indications of water quantity and quality to be expected from a small <br />diameter production well. Should the results be satisfactory, for either an air-rotary or <br />mud-rotary drilled hole, we will prepare a diagram for the well construction, including <br />completion depth, screen interval and slot size, gravel pack gradation, and depth of <br />seal. <br /> <br />PHASE 2 - WELL COMPLETION <br /> <br />Task 1 - Production Well eonstruction Observation <br /> <br />Our representative will observe the reaming of the test hole, as applicable, and <br />the installation of casing and screens at one specific field visit, to assure adherence to <br />