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