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RECEIVE July 26, 2006 City Council City of Lake Elmo 3800 Laverne Ave Lake Elmo, MN 55042 Re: Tablyn Park -Lake Elmo Heights Watermain Extension TIDA Project No. 13524.000 Park Construction Project Number 0612 Subject: Directional Boring Extra Costs Dear Council Members, On Friday, July 21, 2006, our directional boring contractor, EBI Drilling, Inc, was ordered to cease operations by the City of Lake Elmo. This order was enforced by the Washington County Sheriffs Department and citations issued to both Park Construction Company and EBI for " Nuisance Disposal" in reference to the stockpiling of EBI's drilling mud. Per the Lake Elmo Municipal Code, Section 1135.08: Nuisance Disposal is defined as being "...unlawful to dispose of any liquid or solid wastes when the result of such disposal shall be a nuisance, a source of filth, a cause of obnoxious odors, or a cause of sickness." The order to cease and desist and the citations were issued due to a misunderstanding as to the nature of the work being performed by EBI. There was no disposal of any liquids. The drilling mud was being stockpiled in earthen containment cells as shown in the accompanying photo. These cells are approximately T-0 deep, designed to hold up to 2'-0 of drilling mud. This will allow the material to dewater through evaporation and allow for easy disposal of the solids off site as part of our means and methods. This is simply a storage of material in an area designated by the contract documents as a stockpile area. The drilling mud is a betonite product, Bore -Gel manufactured by Baroid Industrial Drilling Products. As contained by the earthen cells, it neither a nuisance nor a source of filth. It has no odors and has no properties that are deleterious to the health of the public. Section 01010.3: Contractor Use of Premises states that "The contractor's operations shall be confined to the areas covered in right-of-way and easements granted to the Owner." The title sheet of the drawings shows a "stockpile site". This stockpile site is the area being used to stockpile the drilling mud as well as the reclaimed Class 5, materials, and equipment. There are no stipulations in the contact documents limiting the use of this area. For the Owner to add restrictions on the use of this stockpile site after the project was awarded is a change in scope. Due to these changes, there will be extra costs incurred by both Park Construction Company and EBI Drilling, Inc. These will include, but are not limited to, a vactor truck(s) and operator, 500-73rd Avenue NE • Suite 123 eaa Telephone 763.786.9800 Minneapolis, MN 55432 Fax 763.786.2952 Established in 1916 An Equal Opportunity Employer