From: BMG

From: BMG To: Jeffrey Epstein <[email protected]> Subject: Fwd: Well E-7871-S Costs and Options Date: Fri, 10 Aug 2012 23:31:39 +0000 FYI Sent from my iPhone Begin forwarded message: From: Casey Cook -4 Date: August 10, 2012 5:04:07 PM GMT-04:00 To: brice gordon Subject: Well E-7871-S Costs and Options Brice G.; As we have discussed, the borehole now being drilled at Zorro Ranch under permit E-7871-S has not shown substantial fluid loss that would indicate a fractured productive zone, as was observed with Well B drilling in 2005. Drilling with mud, however, masks the cumulative input of small yield zones that may provide many gpm over the planned screen interval of 400 feet. We discussed the option of abandoning and redrilling the hole in a different location, but the current hole would need to be abandoned per OSE specifications. I met with Bill Whaley and Ronnie Dennison of HGS this morning to discuss the available options and costs. Below are some cost figures provided by to me Bill W. for your consideration. Drilling the current bore hole to total depth (800 ft) will cost $40,000, including the mobilization and installed surface casing (these costs are already committed). The cost of abandoning the hole in accordance with OSE regulations is $15,000 to $20,000. Total cost if the hole is abandoned is then $55,000 to 60,000. The original plan was to build an 8-inch well, which would cost another $45,000 in addition to the committed drill cost of $40,000 (or a total of $95,000). The driller (Bill W.) indicates he can construct a less-expensive six-inch PVC well for another $26,000, in addition to the committed $40,000, including pea-gravel formation stabilizer, annular seal and grout to surface (or a total of $66,000). Well development and testing will add $12,000 to the drillers cost, regardless of well diameter. Thus, total cost to build a six-inch well is $66,000 + $12,000 = $78,000. The 6-inch well will cost about $20,000 more than abandonment but gives you a well that can be tested for yield. Without building the well, it will remain unknown how much this hole could produce. EFTA00692814 If the well produces enough water to meet the 25% PBU requirement (15 to 20 gpm), you can equip it with the appropriately sized pump and start producing. If the well turns out to be a poor producer, you may be able to re-permit it as a stock well or a permanent monitoring well. Moving over and re-drilling at a new site (say closer to Well B) may require new permitting; Frank Bond may be able to advise on the proper permit to move over and try again. One route may be to drill under an exploratory permit, then, if the yield is good, change the exploratory well to E-7871-S. My recommendation is to determine what the current hole produces; in a borehole drilled with mud, the only way to determine yield is to construct the well. Constructing the well with six-inch casing appears to be a reasonable option. There is no guarantee that yields will be comparable to existing Ranch wells B and 4. Please call with any questions you may have or if you wish to discuss this in further detail. Casey W. Cook, P.E. Balleau Groundwater, Inc. 901 Rio Grande Blvd. NW Suite F-242 Albu uer ue NM 87104 fax EFTA00692815