"I thought it meant he paid $10,000"
Why would Sahara coins pay to destroy chips?

"What does it cost to have a palette of chips destroyed (with or without watching privileges)?"

I watched destruction of one entire rack of chips. There was no charge. It was done at Bud Jones. Paul-Son will also destroy chips. I watched there a couple of times, but it was not an entire rack. It was LE chips. No charge either time.
You always watch to make sure all chips are destroyed.

There is a company that has a mobile unit that will come and destroy chips. I am sure they charge. I know of one they did, and the next day a friend of an employee tried to cash in a $500 and $1,000 chip at the casino. This was accompished while the watchers were NOT watching.

Tokens are a different animal. I think you always have to pay to destroy them. It is not done at PS or BJ.

Unless something has changed PS can not destroy BJ coin inlay chips. It is done in a two step process at BJ.