JAMES E. SMITH & ASSOCIATES, INC.

    DESCRIPTION OF SERVICES

AS OF 02/01/2005

 

ITEM

CATEGORY

DESCRIPTION

FEE

1

Principal

Professional Consultation *1

$175.00/Hr

2

Senior Engineer

Professional Consultation

$125.00/Hr

3

Junior Engineer

Professional Consultation

$95.00/Hr

4

Geologist

Professional Consultation

$95.00/Hr

5

Well Site Geologist

On Site Supervision of Well Activity *2

$800.00/Day

6

Well Site Supervisor.

On Site Supervision of Well Activity *2 – 24-Hr. Drilling

$1,000.00/Day

7

Well Site Supervisor

On Site Supervision of Well Activity Completion (Daylight Hours)

$850.00/Day

8

Well Planning

Prep. of Procedures and AFEs For Drilling, Completions and Work-overs.

Per Agreement

9

Well Management

Day-by-Day Technical Supervision of Well Site Operations by an Engineer

$200.00/Day

10

Technical Support

Logistics and Clerical Support as requested by Client

$35.00/Hr

11

Insurance

Insurance Recovery For Worker’s Comp, Professional Liability, and General Liability on Well Site Work

$75.00/Day

12

Mileage

Average Mileage Expense on Work or Activity in support of Client’s Program

$1.00/Mile

13

Software Royalty

Fee Charged by Software Vendors

$10.00/Hr

14

Site Computer

Fee for Furnishing Site Computer As Requested by Client

$25.00/Day

15

Cell Phones

Recovery of Cell Phone Usage Expense when used for Client Services

$25.00 Per Agreement

16

Subsistence Per Day

Expense for Site Subsistence

At Cost, Not to Exceed $75.00/day

17

Lodging/Hotel

Expense for over-night as requested and approved by Client

At Cost, Not to Exceed $100.00/day

18

Travel 

Expense for Travel by Commercial Travel As Requested by Client

At Cost

 

*1.     Travel time will be billed at 50% and Litigation and Court time will be billed at rate times  

1.25%.

*2.      Well Site Supervision is based on a 12-hour day, for 24-hour services, base rate times 1.5%. 

           Critical Well Supervision (i.e., H2S) will be billed at 1.5% base rate. Billing is based on two-

            hour minimum, ˝-day or any portion thereof.

*3.     Services will be billed according to service level provided, not necessarily by rate of person 

            providing service. 

 
 
Insurance

We carry full coverage general liability, umbrella and excess liability insurance. All Employees are covered by worker’s compensation insurance. We can provide well control insurance, and can obtain a quote with proper notification.

 

 

General Terms and Conditions

No charge for initial consultation.

We require a non-refundable $5,000.00 fee prior to starting any investigation work on any litigation project.

Each Project will be invoiced separately for work performed during that invoice period (monthly) as a convenience to  the client.

Terms of payment: 30 days net; 2% per month will be added to overdue accounts. Payment shall be made at 310 South Vine Avenue, Tyler, TX 75702.

Every attempt is made to provide the highest quality service. Our actions and recommendations are based on our experience and training, in addition to the clients’ guidelines and/or orders. Prudence and safety rank foremost among decision-making criteria.

In consideration for furnishing the services as outlined above, the client agrees to indemnify James E. Smith & Associates, Inc. or any of its personnel, unless such damage or injury is caused solely by the gross negligence or intentional misconduct of its personnel.

JES’s maximum liability for negligent performance of the work shall be limited to the amount of fees received for such work or $50,000.00, whichever is less.

Upon selecting James E. Smith & Associates, Inc. to perform consulting services,  the client further agrees not to recruit or solicit independent services from any personnel furnished by James E. Smith & Associates, Inc. without first consulting James E. Smith and obtaining approval of same and under no circumstances would any party perform any consulting services for a period of one year.

 

2/16/05                                                        

310 South Vine Avenue

Tyler, TX 75702

903/593-9660