I met with you, and Jim Galli, on December 12, 1996 to review information required by Shannon & Wilson, the Union Pacific Railroad (UPRR) consulting engineer, to complete their review of your submission to obtain subject approval from the railroad. During the meeting, we held a telephone conference with representatives from UPRR to discuss your recent submission of additional information requested by Shannon & Wilson's (S&W) letter dated July 24, 1996. My understandings from that meeting are set out in the attached notes.

At the Dec 12 meeting, Dutra clarified issues and answered questions asked by UPRR's consultant, S&W, which corrected errors and omissions in Dutra's letter to UPRR dated December 10, 1996. This settled all remaining questions and concerns arising from S&W's letter dated July 24, 1996, in connection with constructing the crossing under UPRR's tracks, as shown in the Corps' contract drawings.

There are two primary tasks you need to perform in order for the UPRR permit to be issued to you:

1. Submit to the Resident Engineer, Leonard SooHoo, and to UPRR on or before January 1, 1997, a full and complete shoring design reflecting the method shown in the Corps contract drawings. This includes an updated Operations Plan and all of the engineering calculations previously submitted, so that UPRR and the Corps has a single body of all of the information that comprises Dutra's design. Prior to mailing and/or faxing your submission to UPRR and to the Corps, meet with me or my designee at Dutra's convenience and upon your notice to do so within 5 days of January 1, 1997, so that your submission can be reviewed for completeness and compliance with contract format. This submittal will then be made to UPRR for approval so that in the event a problem arises with Dutra's initiative under point 2 below, the work can proceed without further delay.

2. Dutra will submit to UPRR on or about December 20, 1996 a complete engineering design for construction of the pipeline crossing under the UPRR tracks using an "Open Cut" method, as discussed during the telecon (see item #4 at line 051419 in attached notes).

The Corps will facilitate another meeting on January 6, 1997 with the UPRR and Dutra in the manner of the call placed from your office on December 12, 1996, during which call UPRR and Dutra can address aspects of Dutra's open cut method toward finalizing a design that permits this method to be used in place of the design shown in the Corps contract drawings, per paragraph (1) above.

Sincerely,

Marc McGovern
Construction Manager