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EXHIBIT <br /> <br /> MERRILL, SEELEY, <br /> MULLEN, SANDEFUR, INC. <br /> Schedule of Charges <br /> <br /> EFFECTIVE JANUARY I ~87 <br /> <br /> The method of establishing the fee far our services is as set forth in Manual No. 45c of the <br /> American Society of Civil Engineers. Unless other arrangements have been made, charges far <br /> all work including projects in progress will be based on the most recent schedule of charges. <br /> Charges are divided into four categaries: Personnel, Outside Services, Equipment Rental, and <br /> Tests. <br /> <br /> PERS(]FI4EL= Personnel charges are far technical work. Charges are made far technical typing <br /> as in the preparation of raparts and far the time and costs of printing as in the production of <br /> reports. Direct charges are not made far secretarial service~ office management, accounting, <br /> and maintenance since these items are included in overhead. Cost includes direct payroll costs, <br />payroll taxes, vacation, holidays, sick leave, retirement~ and employee insurance. Current <br />personnel rates are as follows: <br /> Personnel Hourly Cost <br /> Expert Witness ................................. $ 135.00 <br /> Principal ..................................... 92.00 <br /> 5eniar Field Engineer ............................ 75.00 <br /> Project Engineer or Geologist ...................... 75.00 <br /> Field Engineer ................................. 62.00 <br /> Staff Engineer or Geologist ........................ 53.00 <br /> Labaratary/Field Assistant ........................ /~5.00 <br /> Graphics ..................... 40.00 <br /> <br />The minimum time charged far court appearance as an expert witness will be z~ hours. <br />Preparation far a court case will be charged at hourly rates. <br /> <br />Time spent in travel in the interest of the client will be charged at hourly rates except that no <br />more than 8 hours of travel time will be charged in any day. When it is necessary far an <br />employee to be away from the office overnight~ actual costs of, ar a negotiate~:l_ rate far, living <br />expenses will be charged. A multiplier of 1.20 will be applied to all personnel expenses. <br /> <br />OUTSIDE SERVICES: Drilling, bulldozing, trenching and similar contract work in connection <br />with exploration on which we administer a subcontract will be charged at the cost rate x !.20. <br /> <br />Other outside services and equipment rental items will be charged at the billing ar cost rate <br />times 1.20. Common items to which this multiplier applies include: equipment rental, printing <br />and photographic work, computer time purchases, special insurance~ outside consultants~ travel <br />and transpartation, and long distance communication. <br /> EQUIPMENT RENTAL <br /> <br /> Field Instrumentation Seismology Equipment <br /> Geaphysical Equipment Geology Equipment <br /> <br /> USE CHARGES QUOTED ON REQUEST <br /> <br /> <br />