5.

There would be numerous days when little or no progress could be made because of a number of factors, including mechanical breakdowns and adverse weather conditions which would prohibit utilization of the support helicopters.

The crew for a unit would consist of about 15 men requiring food
and lodging support involving several hours of commuting time per
day. A crew would be needed to clear the brush or trees in the
drilling area to enable support helicopters to reach the operation.
A mechanic would maintain the drilling, refrigeration, and other
support equipment. A geologist in the field, plus laboratory
personnel, would be necessary to provide the geotechnic support
for the four-rig unit.

A standard drilling rig modified for Arctic work has been found to be the most practical. A 2-1/2 inch split spoon would run through the 9-inch auger for the purpose of driving ahead to test soil strength. The auger would be replaced with a core barrel and drill for taking core samples.

Working 10 hours per day, each drilling rig would require an average
of four days to drill one hole 50 feet deep with core samples pre-
served in a frozen state. For the total unit of 4 drilling rigs,
working 7 days per week, the production will be one hole per day
for the 220 days during the time of year when operations could be
maintained. Forty rigs (ten units of 4 rigs each) working two
seasons, would finish about 4500 holes. The remaining 1000 holes
would be drilled in the third season as scattered verification holes,
re-route holes, side-hill checks, bridge foundation checks, pump
station soils analysis, and re-runs on defective samples.

The cost of drilling each hole would be about $10,000 with the cost of geotechnic field and lab support amounting to $2,500 per hole. Supervision and technical backup would add another $1,500 for a total of about $14,000 per hole, or $77 million for 5500 soil borings.

Preliminary Survey Two Years and Nine Months Required.

(Ninth month of year 1 through fifth month of year 4)

Contracts would have to be prepared for a physical survey and mapping for all civil work including river crossings, road crossings, property surveys, profiles, access roads, material sites, station sites and the main haul road.

6. Prepare Project Description - One Year and Three Months Required. (Sixth month of year 2 through eighth month of year 3)

7.

Assuming the description prepared for the Trans-Alaska pipeline would
provide a meaningful base, it would require approximately fifteen
months to develop the additional information required. This time
requirement fits within the time frame necessary to accomplish other
pre-construction activities and consequently does not add to the overall
time estimate.

Environmental Impact Statement Preparation
Three Months Required.

(First month of year 3 through third month of year 4)

Requisite information for the Environmental Impact Statement would be
prepared and preliminary information would be submitted to the authorizing
agencies in the United States and Canada beginning in the middle of the
third year.
This time requirement fits within the time frame necessary to
accomplish other pre-construction activities and consequently does not add
to the overall time estimate.

Following preparation of the Environmental Impact Statements (U. S. and the Canadian equivalent) application for permits would be made.

10.

11.

(Seventh month of year 1 through twelfth month of year 3)

This time requirement fits within the time frame necessary to accomplish other pre-construction activities and consequently does not add to the overall time estimate. Note, however, that the Canadian Native Claims issue would have to be completed prior to start of construction.

U. S. Permit Granted.

(Permit issued in middle of year 4)

We assume that the main U. S. right-of-way permit would be issued without unreasonable delay.

Canadian Permit Granted.

(Permit issued at the end of year 4)

We assume that the main Canadian right-of-way permit would be issued
without unreasonable delay, but we allow more time for the Canadian

Government to act since there would be more data to consider and review on the longer segment of line through Canada.

(First month of year 3 through twelfth month of year 4)

A detailed mile-by-mile design would have to be completed and approved prior to the issuance of U. S. and Canadian notices to proceed with construction (See Item 13). We would plan to complete the mile-by-mile design shortly before the main right-of-way permits are issued, so that we could immediately submit this detailed design to the U. S. Department of Interior (and its Canadian equivalent) for its review and approval. This design would utilize the results of the comprehensive soil boring program.

13. Notices to Proceed Nine Months Required.

14.

(Fourth month of year 5 through twelfth month of year 5)

After issuance of the main right-of-way permits, the U. S. Department of Interior (and its Canadian equivalent) would conduct a comprehensive review of the mile-by-mile design. This review would be made to ensure that the design would comply with the rigorous criteria and strict construction stipulations established by the U. S. Department of Interior. (We assume that Canada will require the same review procedure and further, that its design criteria and its construction stipulations would be comparable to those required by the U. S. Department of Interior.) After this review, the governmental agencies would issue notices to proceed with construction for those sections where the design has been given final approval. We assume that notice to proceed on the civil work--haul roads, access roads and camps, for example--would be issued before review of pipeline design is completed. Further, we assume that notice to proceed with pipeline construction would be issued by sections, recognizing that notice to proceed with construction of certain pipeline sections in particularly delicate areas might be delayed pending verification of data.

Road Construction Two Years and Nine Months Required. (Seventh month of year 4 through third month of year 7)

Construction of roads in the United States would begin as soon as the main
U. S. right-of-way permit and notices to proceed were issued. Construction
of roads in Canada would commence immediately after receipt of the main
Canadian right-of-way permit and appropriate road permits. A main haul
road would be required from Prudhoe Bay to the Mackenzie Valley south of
Innuvik. We assume that the Canadian Government would overcome the current

15.

opposition by environmentalists which has halted construction of a road paralleling the Mackenzie Valley north to Innuvik, and would complete this section of Canadian highway.

Construction Surface Two Years and Four Months Required.
(Seventh month of year 4 through tenth month of year 6)

A gravel pad averaging two to three feet in thickness to permit movement of construction equipment would have to be laid alongside the pipeline route. It would be connected by access roads to the main haul roads. This gravel pad would allow year-round access by maintenance equipment after operations begin.

16. Rights-of-Way Purchase Three Years Required.

17.

18.

(Tenth month of year 2 through ninth month of year 5)

The Canadian pipeline would cross mostly private lands south of Edmonton
to Chicago requiring acquisition of pipeline rights-of-way. Land
would also have to be acquired for other purposes such as pump stations,
terminals, communication sites, block valve installations, warehouses,
and pipe storage yards.

Commitments for Camps and Buildings - Seven Months Required.

(First month of year 5 through seventh month of year 5)

Commitments for camps and supporting services would not be made until the main right-of-way permits were received from the United States and Canada.

Commitment for Construction Equipment and Manufacture
Months Required.

(First month of year 5 through ninth month of year 5)

Nine

Commitments for construction equipment such as ditchers, pipe benders,
drilling rigs, and automatic welders would not be made until the main
right-of-way permits were received from the United States and Canada.
Such equipment would not be generally available and would require modifi-
cation for cold weather utilization.

19. Negotiate Construction Contracts - Six Months Required. (First month of year 5 through sixth month of year 5)

Serious negotiations with contractors for pipeline construction would not
begin until main right-of-way permits were issued and attendant stipulations
were known. This time requirement fits within the time period necessary for
obtaining construction equipment, building camps, and mobilizing crews,
and consequently would not add to the overall time estimate.

21.

South of Edmonton. Two Years and Ten Months Required.
(First month of year 6 through tenth month of year 8)

Pipeline construction would start south of Edmonton after obtaining
construction equipment, materials, and mobilizing contractors and crews.
Construction progress in the south could reach 4000 feet for each spread
per day. Considering the congested area near Chicago, the possibility
of adverse weather, labor disruption, and rigid inspection by govern-
mental agencies, we assume that construction would proceed at this level
for 300 days of the year. Assuming four spreads would begin working after
four months of mobilization, it would take over two years to complete the
1550 miles from Edmonton to Chicago. Testing, clean-up, revegetation,
and demobilization would add another nine months.

Main Line Construction

North of Edmonton Three Years and Three Months Required.
(Second month of year 7 through fourth month of year 10)

Pipeline construction could begin north of Edmonton as additional equip-
ment becomes available and piling is installed in those areas where
above ground construction is required. If, for example, 50% of the
northern segment would be above ground, some 160,000 to 170,000 holes
of 24 inch diameter to a depth of fifty feet would be required. Assuming
400 rigs, each drilling one hole per ten-hour day during the 220 days
available each year, it would take about two years to drill the requisite
piling holes, thereby restricting the ultimate progress in the north.

We assume a pipeline construction rate of 2500 feet per day for each
northern spread and further assume that climatic conditions would preclude
economic construction during the severe winter months. Thus, three addi-
tional spreads could complete approximately 220 miles during the first
northern construction year allowing four months to mobilize equipment and
crews. During the following year, the eighth project year, these three
northern spreads could complete another 330 miles. In the ninth project
year assuming the four southern spreads would move north, another 770
miles could be finished for a total of 1320 miles. Completion of construc-
tion would occur by the middle of the tenth project year.

(Tenth month of year 9 through tenth month of year 10)

The medium to be used for testing the line; i.e., gas or liquid, has yet to be selected. If a liquid medium were to be used, testing in the mountainous areas would have to be done by sections.

Moreover, if a