LEAK LOCATION SERVICES, INC.

16124 UNIVERSITY OAK ! SAN ANTONIO, TEXAS 78249 ! (210) 408-1241 / FAX (210) 408-1242

December 11, 2009

E-mail:

Subject: Proposal for Part of “Section 33 10 00 – Geomembrane Leak Location Survey of

Primary Geomembrane Covered with Water” at the Progress Energy
Brunswick Nuclear Power Plant
LLSI Proposal 1191E

Dear Contractor:

Leak Location Services, Inc. (LLSI) is pleased to submit the attached proposal for providing
part of the subject work. In actuality, the work will be to install an advanced Electrical Leak Imaging
and Monitoring (ELIM) System for a new double geomembrane-lined Stabilization Pond at the
Brunswick Nuclear Power Plant in North Carolina. LLSI holds U.S. Patents numbers 4,950,374 and
5,661,406 for this system.

Each application of this technology is custom-designed to best meet the needs of the client.
LLSI provided information to the engineer’s consultant for a preliminary design for the leak
detection system. This proposal provides some further refinements to the design. These refinements
are exceptions to the drawings and specifications.

In the proposal, certain labor, equipment, materials, and construction support will be
conducted by your firm. The proposal outlines that support and the work that will be performed by
LLSI. In the proposal, your firm is referred to as Contractor. If there are any questions regarding
the proposed leak location monitoring system, please contact us at (210) 408-1241. We look forward
to the opportunity to be of assistance on this important requirement.

Very truly yours,

Glenn T. Darilek
Principal Engineer

Since 1992
www.llsi.com results@llsi.com
 LEAK LOCATION SERVICES, INC.
16124 UNIVERSITY OAK ! SAN ANTONIO, TEXAS 78249 ! (210) 408-1241 / FAX (210) 408-1242

LLSI Proposal 1191E

December 11, 2009

A Proposal for Part of:

Section 33 10 00 – “Geomembrane Leak Location Survey of

Primary Geomembrane Covered with Water” at the
Progress Energy Brunswick Nuclear Power Plant
Prepared by:

Glenn T. Darilek
Principal Engineer

I. INTRODUCTION

This proposal is for a patented Electrical Leak Imaging and Monitoring (ELIM) system for
monitoring and locating leaks in the geomembrane liner of the Brunswick Nuclear Plant Stabilization
Pond. It is in response to parts of Section 33 10 00 of the project specifications. Other parts of the
section will be performed by Contractor as described in this proposal.

The pond has an area of 136,000 square feet. The pond will have a layer of soil between
double geomembranes. The ELIM system includes electrodes installed in a grid pattern between the
geomembranes. The system can locate leaks in either the primary or secondary geomembrane if
desired. This proposal is based on the assumption that the work can be conducted in a safe
environment and that radiation worker training will not be required.

Since 1992
www.llsi.com results@llsi.com
Section 33 10 00 - Brunswick Stabilization Pond Page 2 of 7
December 11, 2009 LLSI Proposal 1191E

II. MODIFICATIONS AND EXCEPTIONS TO DRAWINGS AND SPECIFICATIONS

The work will be conducted in accordance with Section 33 10 00 with the modifications and
exceptions described below. The refinements will result in a more efficient implementation that
reduces the amount of wire that is needed. We also propose some elements of the design be
simplified to make the construction more straightforward. The changes to Section 22 10 00 are listed
below.

1.2 A.1 and 1.2 A2 - The measurements will be made in the Sample Building. The
specification calls for all the electrode wires to be routed to the Sample Building and that four
SuperSting switch boxes (1.2 J.1.) would be installed in a desk in the Sample Building. Instead, of
pulling about 480 wires through buried conduit to the Sample Building, we propose to put the switch
boxes in a waterproof NEMA enclosure at the edge of the pond and run a single multiconductor
cable with a diameter of about 0.5 inches to the Sample Building. Instead of a 4-inch conduit, a 2-
inch conduit can be used so an integral connector with a diameter of 1.35 inches can be pulled.

The 480 electrode wires will be routed to the NEMA enclosure, and will be connected to the
switch box outputs using terminal blocks, so a connector panel and numerous connectors will not
be needed in the Sample Building.

1.2 A3. - Contractor will install a 2-inch PVC electrical conduit from the panel to the point
where the wires exit from beneath the geomembrane.

1.2 D.1. - Drawing EN-102 shows 459 electrodes. The scale on Drawing EN-102 seems to
indicate that the electrodes are spaced about 16.4 feet (5 m) apart. Therefore, for 16-foot spacings,
about 482 electrodes would be needed to cover the same area. This proposal is based on using
approximately 482 electrodes.

1.2 G.2. - Contractor or their representative will also provide coordinates of nearby fixed
reference points on the as-built drawing.

1.2 I.1. - The redistribution licence applies to the Owner.

1.2 J.1. - Five switch boxes will be needed to accommodate the extra electrodes. One of the
boxes will be a 56-switch box.

1.3 A.1. - The water puddle surveys will be accomplished according to Section 33 10 10.
A separate LLSI Proposal 1191D will be submitted for this work.

1.3 B.1. - In addition to the baseline ELIM survey of the primary geomembrane, a baseline
ELIM survey of the secondary geomembrane is proposed before the primary geomembrane is
installed. The highest potential for damage to a geomembrane occurs during the placement of earth
Section 33 10 00 - Brunswick Stabilization Pond Page 3 of 7
December 11, 2009 LLSI Proposal 1191E

materials on the geomembrane. After the primary geomembrane is installed, repairs to the secondary
geomembrane would require part of the primary geomembrane to be removed, and then repaired.
Also, the baseline ELIM survey would identify any problems in the 480 electrodes and wires and
allow them to be repaired without removing part of the primary geomembrane and repairs.
Therefore, a baseline survey of the secondary geomembrane is highly recommended. It would be
performed immediately after installation of the electrodes and NEMA enclosure for the switching
boxes. The survey can be performed before the cable and conduit are installed to the Sample
Building. If any leaks are detected, they will be repaired by Contractor and the survey repeated. The
survey would require that the edges of the sand be isolated from earth ground.

Drawing EN-101 - The Hydraulic Connection Detail shows the electrodes on top of a layer of sand
with a geotextile and another layer of sand above. Installing the layer of sand above the electrodes
may be very difficult without damaging the wires or electrodes, even with the geotextile. Therefore,
installing the electrodes in shallow trenches at the top of the 24 inches of sand is proposed. The
geotextile in the middle of the sand is not needed for the ELIM system. If it were installed on top
of the sand, it would provide a little protection for the electrodes and wires during the installation
of the primary geomembrane.

The K > 1 x 10^-2 may be difficult to attain if the 10 percent bentonite (Drawing EN-102)
is used.

Drawing EN-102 - It would be very difficult to implement the perimeter conduit, in particular,
pulling the wires. The protection that the conduit would provide may be negated by the introduction
of many abrasion and pinch points. Therefore, eliminating the perimeter conduit is proposed.

The electrode wires are all routed to the plant southeast corner. The drawing shows the wires
exiting the pond in the center of the plant south edge. This would require an additional 10 miles of
wire (480*110 feet) and a right angle in the conduit. This proposal is to run the wires up the slope
in the southeast corner and put the NEMA enclosure for the switch boxes just past the anchor trench.
Three 2-inch PVC conduits are needed. The conduits would extend into the sand between the
geomembranes, between the geomembranes, through the anchor trench, and up to the bottom of the
NEMA enclosure. If desired, a boot similar to the Riser Pipe Penetration can be used as shown in
Drawing EN-103, except it would be through only the secondary geomembrane. The 2-inch conduit
to the Sample building would also be routed to the NEMA enclosure.

Although it may be needed for hydraulic properties, 10 percent bentonite in the sand is not
needed for the ELIM system. Instead, to maintain good contact with the electrodes, the electrodes
can be bedded in about 8 ounces of bentonite.

Drawing EN-104 - The level sensor, sump pump, and hose must be electrically isolated from ground
or removed temporarily to conduct an ELIM survey.
Section 33 10 00 - Brunswick Stabilization Pond Page 4 of 7
December 11, 2009 LLSI Proposal 1191E

Drawing E-102 - The conduits for the ELIM system are not shown on this drawing or schedule.

Drawing E-104 - A 24VDC power supply outlet is not needed for the ELIM system. A NEMA
enclosure will not be needed unless it is used to enclose a 12-volt marine battery, and a battery
charger. One electrical receptacle would be needed for the battery charger, preferably high, or to one
side in the enclosure. The marine battery is about 7 inches deep by 11 wide by 8 high.

II. CONTRACTOR SUPPORT

Contractor will provide all the work to be provided by Client as described in Section
33 10 00, as modified in this proposal. Those things, and other support provided by Contractor are:

* Provide Computer/Printer Workstation Desk with three wired double convenience

receptacles, 15A with GFCI,

* Install 2-inch PVC electrical conduit including pull boxes as needed, from a Type E
access fitting just above the top of the Computer/Printer Workstation Desk to a
NEMA enclosure at the southeast corner of the pond where the wires exit from
beneath the geomembrane. NEMA enclosure will be mounted as required. NEMA
enclosure must be 48 inches high, 36 inches wide, and 11 inches deep.

* Provide trenches for the electrode wires (Drawing EN-102).

* Backfill the trenches with wire in them, taking great care not to damage the wires.

* Provide trenching, PVC electrical conduit, and backfilling from the sand at the top
of the slope at the southwest corner of the pond to the NEMA enclosure at the
southeast corner of the pond including three 2-inch PVC conduits.

* Surveying the positions of each ELIM measurement electrode. An as-built drawing

of the pond will be provided indicating the position and coordinates of each electrode
and the coordinates of nearby permanent reference points.

* Provide for electrical isolation of the primary and secondary geomembrane liners.
This can be accomplished by welding the primary and secondary geomembranes
together at the base of the anchor trench and that the sand will terminate near the top
of the side slope. The conduits exiting from between the geomembranes at the
southwest corner can be booted through the secondary geomembrane or use other
means to prevent electrical contact between the sand between the geomembranes and
earth ground.

* Provide two laborers for 15 days to assist LLSI personnel in the laying out of the
Section 33 10 00 - Brunswick Stabilization Pond Page 5 of 7
December 11, 2009 LLSI Proposal 1191E

electrodes and wire.

* Provide the use of an all-terrain vehicle while LLSI personnel are installing the
electrodes and wires.

III. COST

The following are costs for providing an advanced leak location monitoring system for a
newly constructed 136,000 sq. ft. double-lined pond. The costs are:

ITEM DESCRIPTION COST

A. Electrodes (approximately 482). . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,324

B. Wire (313,800 feet). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53,346

C. Data acquisition system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,130

D. Custom data analysis software.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

E. Panel and components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

F. Cable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

G. Desktop computer, monitor, printer.. . . . . . . . . . . . . . . . . . . . . . . . . . 1,500

H. Training manual and training.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

I. Mobilization and electrode installation. . . . . . . . . . . . . . . . . . . . . . . 33,000

J. Mobilization and baseline ELIM data. . . . . . . . . . . . . . . . . . . . . . . . . 5,750

Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 266,050
Patent Royalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,303
Total Cost *. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 279,353

Additional Optional Cost Items

K. Additional Mobilization, ELIM Data Collection,

and Field Interpretation (1-day for one-person)*. . . . . . . . . . . . . . . . $ 4,950
Section 33 10 00 - Brunswick Stabilization Pond Page 6 of 7
December 11, 2009 LLSI Proposal 1191E

L. Additional hourly survey or standby for one-person

field crew (4-hr minimum call out)*. . . . . . . . . . . . . . . . . . . . . . . $ 140/hr.

M. Additional hourly survey or standby for two-person

field crew (4-hr minimum call out)*. . . . . . . . . . . . . . . . . . . . . . . $ 240/hr.

N. Additional round-trip mobilization

(Two-person field crew).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,250

O. Additional round-trip mobilization

(One-person). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,250

*If more than proposed days are needed to complete the field work because of lack of
preparations or support, delays due to weather, numerous leaks, or delays caused by circumstances
beyond the control of LLSI, the extra days of work or standby will be charged at the rate listed in
item L or M.

IV. PAYMENTS

Contractor shall pay LLSI the amount stated in section III of this proposal for the work,
which may include additional standby or survey costs. The company that manufacturers the data
acquisition equipment requires a 30% payment upon order, and the balance before shipping. Also,
the wire manufacturer requires advance payment. Therefore, the payment schedule will be:

* $92,085 upon project initiation for the data acquisition system and wire;

* $90,391 prior to delivery of the data acquisition system; and

* Payment in full within 30 days for tasks completed.

V. NO LICENSE

Neither the execution or delivery of the proposed work nor the furnishing of the survey
results by LLSI shall be constructed as granting to Contractor, either expressly, by implication,
estoppel, or otherwise, any license under any invention, technology used by LLSI, patent application
or patent application or patent owned or controlled by LLSI.

VI. WARRANTY

As with any technology, there are ultimate limits to the technology and practical field
procedures. The electrical leak location method can accurately find the smallest electrical paths of
practical interest. However, conditions may exist where an electrical path is not established through
Section 33 10 00 - Brunswick Stabilization Pond Page 7 of 7
December 11, 2009 LLSI Proposal 1191E

a leak because of preparations or other conditions not under the control of LLSI. LLSI also has no
control over the reliability or completeness of the repairs, and has no control over possible future
liner failures or damage to the liner. For a small proportion of the total cost of a geomembrane-lined
facility, LLSI cannot assume any liability for possible existing and future pollution damages and
litigation costs.

Nevertheless, Leak Location Services, Inc. is the most experienced in the world for field
applications of the electrical leak location method for geomembranes, and the results of these
applications have been outstanding. To reflect these practical realities, LLSI provides the following
warranty:

LIMITED WARRANTY

LEAK LOCATION SERVICES, INC. WILL PERFORM THE PROPOSED WORK

DESCRIBED HEREIN IN A GOOD AND WORKMANLIKE MANNER WITH THE
DEGREE OF HIGH PROFESSIONAL SKILL AND SOUND PRACTICES AND
JUDGEMENT THAT IS NORMALLY EXERCISED BY RECOGNIZED PROFESSIONAL
FIRMS WITH RESPECT TO SERVICES OF A SIMILAR NATURE.

HOWEVER, BECAUSE THE WORK INVOLVES CONDITIONS THAT ARE NOT UNDER
THE CONTROL OF LLSI BEFORE, AFTER, OR DURING THE TESTING, LLSI DOES
NOT WARRANT THAT IT WILL DETECT, OR IDENTIFY, OR MARK ALL LEAKS IN
THE GEOMEMBRANE.

IN ADDITION, LLSI DOES NOT ASSUME ANY LIABILITY FOR THE DIRECT,
FORESEEABLE OR CONSEQUENTIAL LOSS, COST OR DAMAGE RESULTING FROM
DEATH, PERSONAL INJURIES, LOSS OR DAMAGE TO PROPERTY, OR
IMPAIRMENT, OR ANY DAMAGE TO ANY RIGHT, INCLUDING BUT NOT BY ANY
WAY OF LIMITATION, THE RIGHT TO BE PAID FOR THE LOSS OF TIME, LOSS OF
SERVICES, FINES, PENALTIES, OR ATTORNEY'S FEES AND OTHER EXPENSES
INCURRED, ARISING OUT OF OR AS A CONSEQUENCE OF THE USE OR MISUSE OF
ANY SURVEY RESULTS, DATA OR OTHER INFORMATION RESULTING FROM
PERFORMING THE PROPOSED SERVICES.

THE PARTIES AGREE THAT ANY DAMAGES, CLAIMS, OR LOSSES INCLUDING

ENVIRONMENTAL OR POLLUTION DAMAGES, CLAIMS, OR LOSSES RESULTING
FROM THE WORK LLSI PERFORMS UNDER THIS AGREEMENT WILL BE LIMITED
TO THE AMOUNT OF COMPENSATION LLSI HAS RECEIVED UNDER THIS
CONTRACT.