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Michael - With respect to your pay scale and payroll calculations they are very high. This is Appalachia we are talking about so your payroll numbers are also high. One other point. I'd probably start with my GM and Mechanical guy being among my 7 employees for the first line. Also, senior management will likely have to make concessions initially in exchange for later gains. The Board Member and perhaps Sr. Mgt will receive part or all of their compernsation in stock. Again, the financial structure is open for the time being. As far as the payroll goes, I make it to be a total of $448,950 including full Railroad Retirement (Tier 1 and Tier 2). An additional $81,000 would give all employees full medical coverage. Total $529,950. People love to work for an employer with great retirement and medical benefits even if the wages are a bit lower. Concerning locomotives. B23-7s. I can lease these units (due to industry connections) at $40/day/unit or $14,600/unit annually. Total $29,200. SD40-2 or SD50. I can lease these units from a friendly source for $200/day or $146,000 for two annually. As mentioned above, I will likely be able to trade horsepower hours with the Class 1 involved as part of the deal meaning I will effectively be getting the equivalent of 5 locomotives for my investment of 2 to haul the coal. This multiple keeps rising the more coal I move until I max out the capability of the available locomotives. MOW Equipment Boomtruck, Backhoe and trailer should be a total of about $75,000 from the right suppliers in good shape. Hirail inspection truck will be another $30,000 assuming good used vehicle with hirail mounted and FRA certified. I'd buy these with cash from the invested capital unless I was offered excellent lease terms. So far, I'm only at $705,150 and I've covered many of my largest costs. I think $1.2M is not only doable, but I might have a few bucks left over, depending upon fuel costs, but as I intend to be junction settlement I'll ask for a cut of the Class 1 surcharge. LC
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