To: Richard Kahn From: Jeffrey Epstein Sent Tue 7/17/2012 6:56:53 PM Subject: Re: Zorro Ranch Revised ok On Tue, Jul 17, 2012 at 2:47 PM, Richard Kahn wrote: I just spoke with the owner Bill Whaley who was reluctant to discount his pricing any further than the $1,600 offered in this email. I was able to persuade him to agree to a total discount of $6,000 which represents a 4.85% discount from original quote. Accordingly their price to drill would be $117,221 They will be ready to start next week around July 25th + or - a day Please note that this quote is priced for the full 800 feet of drilling If we only drill 700 feet then the cost will be reduced by approximately $6,300 Other costs involved with drilling other than HGS $117,221 are as follows: a) Casey Cook - consultant to oversee job and file reports - approximately $12,500 (billing rate of $150 per hour) -costs already incurred and paid in 2012 with identifying well, meeting with Brice and filing permits, etc. amount to $9,000 b) RMC Electric - approximately $17,500 per Brice (i will forward his quote and negotiate with him as well) Estimated total drilling costs with gross receipts tax: $165,974 (this number includes $9,000 costs already incurred and New Mexico gross receipts tax rate of 6.625% - darren is looking into why gross receipts is applicable) Please advise PLEASE NOTE EFFECTIVE JUNE 5TH MY CONTACT INFO WILL BE AS FOLLOWS: Richard Kahn HBRK Associates Inc. E FTA_R1_00283967 EFTA01875410