Re: Ice Drilling

----- Forwarded by Richard B Sanders/HOU/ECT on 02/04/2001 10:01 AM -----

Richard B Sanders
12/27/2000 02:43 PM

To: Richard B Sanders/HOU/ECT@ECT
cc:
Subject: Re: Ice Drilling

----- 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