Dept. of Trans.       PROGRESS   Serial No.  Contract No.                               
                                          11-265-08-49  06-0M3004                       
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
Location:                                  40%          87%                             
06-KER-178-15.7/26.4                    Federal Project:                                
                                     NONE                                               
                                                                                        
                                                                                        
Progress payment No. 02            Payment period ending: 09-20-11                      
MICHELS PIPELINE CONSTRUCTION                                                           
P O BOX 12905                                                                           
SALEM OR 97309                                                                          
                                                                                        
                                                                                        
Escrow No.  00000                                                                       
                                    Total Estimate   This Estimate                      
1. Contract Itms Without Mobil.         150,335.05      138,500.38                      
2.a. Extra Work                                                                         
  b. Adjustment Comp.                                                                   
3. Materials on Hand                                                                    
4. Earned Subject to Retention          150,335.05      138,500.38                      
5. Mobilization                                                                         
6. Total Work Completed      150,335.05                                                 
7. Deductions                                                                           
8. a.Contract Retentions                                                                
   b. Unsatisfactory Prog.              -13,850.04      -13,850.04                      
   c. Reduction after 95% Comp.                                                         
9. Total pay to Contractor              136,485.01      124,650.34                      
10. Reduction Amt to Escrow                                                             
11. Payment to Escrow             0.00                                                  
12. Net Pymt. this Estimate                             124,650.34