----- Forwarded by Richard B Sanders/HOU/ECT on 12/27/2000 02:47 PM -----

	John Enerson
	11/15/2000 02:42 PM
		
		 To: Lisa King/HOU/ECT@ECT
		 cc: Richard B Sanders/HOU/ECT@ECT
		 Subject: Re: Ice Drilling

Lisa - The attached schedule calculates interest on overdue interest at the 
9.9% rate.  This is fine except that I do not know if we are able to charge 
interest on overdue interest.  That is Richard Sanders call - Richard, please 
let us know.  If we can charge interest on interest, this schedule is fine.  
Otherwise, we will have to recalculate using simple interest.



Lisa King
11/15/2000 02:19 PM
To: John Enerson/HOU/ECT@ECT
cc:  
Subject: Ice Drilling

John-

Attached is the schedule that we had at Monday's meeting which has been 
updated through 10/31/00.   After looking more closely at the schedule and 
the way it is calculating interest, it appears that interest is being 
compounded.  The estimate that we had used in Monday's meeting was simple 
interest for one year calculated on the sum of $1,061,300.90 and $264,452.89 
(October 1999 values) which equated to roughly $131,246.65.  However,  based 
on the schedule's calculation, I believe the total interest and principal due 
is $1,171,585.67.  Please look over this schedule and see if you agree with 
my thinking.

Thank you,
Lisa