Oil Status UPdate -- response to your questions

I spoke with Doug Leach regarding your questions. He has already contacted
4-5 suppliers/truckers and is ready to rock and roll when we know what spec.
of No. 2 we need. As such, they are all set to supply our requirement. Doug
reiterated his interest in looking at the long-term relationship we may want
to build with a supplier. He is particularly concerned if the plant switches
to oil for a significant amount, supplying large quantities will be a
logistical nightmare.

He agrees that we can hedge 80-90 (if not 100%) of the commodity risk by
buying the Gulf Coast contract (there is no basis traded for FL). However,
his market view is for prices to come off (they have already dropped a bit)
as a result of gasoline prices cooling off.

He has scheduled the test for Vandium today. We should get results in the
next several days.