Dave:

As a follow-up to our call last night, I am attaching a matrix which details 
the major development tasks and the current status and expectations for 
each.  Additionally, I am faxing you the legal opinion on the FX issue.  
Lastly, the following comments relate to the issues you raised on the 
contract:

Definition of Calculation Period - The monthly term was not clearly outlined 
due to some issues on the consortium/capital contribution nature of the 
structure.  The montly period has some references, but this needs to be 
clearer and we will include this in the definition.
Definition of Petrobras Preferred Allocation - We will change the reference 
from 6.02(d) to 6.02(e).
Paragraph 6.02(e) - We will add language to clarify that the gas price is the 
Reias equivalent of the US$ price.
Paragraph 16.02(e) - The general concept was that Petrobras would receive the 
economic benefit, if any, for any capacity that they paid for during FM 
events after the term of the agreement.  This paragraph will be adjusted to 
state this more clearly.
Paragraph 16.02(h) - This paragraph is only suppose to refer to Force Majeure 
events, not Political Force Majeure.  We will delete Political Force Majeure 
and the reference to 16.01(e).
Paragraph 22.01(b) - The referece 3.01(b) should be (e).  We will make this 
change.

With respect to our general stategy on the permitting, we will be delivering 
a letter and legal opinion to FEEMA within the next couple of days asking 
them to include language in the environmental permit (installation license) 
for RioGen allowing us to start certain work (common facilities and civil 
work) for Eletrobolt.  This would allow us more time for the process on 
Eletrobolt within the constraints ($15 million budget) of the Consortium 
Agreement and Political Force Majeure allocation to Petrobras.  The RioGen 
installation license is expected to be issued at the end of this month or 
beginning of January.

Thanks,
Brett