Degradated land reclamation using shelterbelts in Texa1 by JohnJeapes1

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									Author John M Jeapes         Confidential         Page 1                                                      09/09/2011


     Mitigating the effects of Drought using Pongamia shelterbelts in Texas




     Drought is a special type of disaster because its occurrence does not
require evacuation of an area, nor does it constitute an immediate threat to
life or property. People are not suddenly rendered homeless or without food
and clothing. The basic effect of a drought is economic hardship, but it does,
in the end, resemble other types of disasters in that victims can be deprived
of their livelihoods and communities can suffer economic decline.

    Ranchers in some parts of Texas are selling off their herds, because the
once-fertile grasslands that feed them are gone. Three-quarters of Texas is
in extreme or exceptional drought. Lubbock has had less than an inch of rain
this year. Houston has had just over an inch-and-a-half in three months,
about the same as the Sahara desert. Wildfires are ravaging the tinder dry
landscape, scorching more than two million acres since January, and to make
matters worse, this is typically the Texas rainy season. "We should be seeing
rainfall, so if we don't get rainfall in the next several months, the impact is
going to be devastating," said Victor Murphy, meteorologist at the National
Weather Service.
    For thousands of ranchers across Texas, the only choice is to sell their
herds or go broke trying to feed them although the drought in cattle country
could actually bring a short-term benefit to consumers. Beef prices have
been running at near record highs, but with so many ranchers now forced to
sell off their herds, the price of beef is expected to drop.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 2                                                      09/09/2011


    Already auction prices in Texas have fallen 15 cents from 80 to 65 cents
per pound and could continue down through summer. But with the U.S.
cattle population already at a 50-year low, lower prices won't last.
Preliminary estimates of Texas drought losses have reached $1.2 billion and
are expected to escalate higher this year as livestock producers continue to
sell off herds and crop conditions deteriorate, according to economists with
the Texas AgriLife Extension Service.

   Victor Murphy, who manages the National Weather Service's Southern
Region Climate Services Program, said that last month marked the driest
March recorded in Texas since record-keeping began 117 years ago, and it
was the third-driest March on record in New Mexico, and the 10th-driest seen
in Oklahoma.

   The wildfires now scorching Texas may be the most visible side-effect of
the drought. As of yesterday, the state's Forest Service was struggling to
contain four major fires that covered more than half a million acres. But
Murphy said stream flow, soil moisture and groundwater supplies are also
below normal in several Southern states, including Texas, despite a generally
wet summer in 2010.

   Economists disagree about the precise figures, with the estimates varying
by billions, but most agree that the ongoing Texas drought, which began in
November and has caused more than 10,000 wildfires across the state, will
cost between $1.5 billion and $3 billion in crop and cattle losses alone.

    Drought is a complex physical and social process of widespread
significance. Although drought sometimes affects the entire State, due to the
varying climatic conditions within the State, it frequently is just a regional
problem. Despite the frequency and economic damage caused by drought,
the term drought remains difficult to define, and there are no universally
accepted parameters because Drought, unlike floods, is not a distinct event,
in that it has no clearly defined beginning or end, thereby complicating
attempts to define it.

    The definition of drought varies with its impact on individuals, thus
influencing the perception of drought depends upon whom it affects, and how
they are affected. While the effects of drought on the environment cannot be
avoided, in many cases the adverse effects caused by human intervention in
drought prone areas, can be reversed.

     The impacts of drought on the State of Texas are many and varied, and
drought can affect a wide range of economic, environmental, and social
concerns. The relative vulnerability, or risk exposure, of these activities to
the effects of drought, usually depends on the types of water demands.



  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 3                                                      09/09/2011


      How these demands are met, and the corresponding water supplies
available to meet future demands, requires action today. Tomorrow may be
too late because those human, and natural resource activities which depend
solely on rainfall and soil moisture, such as dry-land farming, ranching, and
some environmental water uses, are most at risk from drought.
Unfortunately these activities can suffer discernible effects, even with
droughts of short duration.

     Also at relatively high risk, but somewhat less exposed, are the systems
that depend upon stream flows, such as run-of-the-river irrigation, aquatic,
wetland, riparian environmental communities and recreational water uses.

     This document is an initiative by The Abundant Biofuels Corporation to
develop and promote the growing of Pongamia to assist in the restoration
and reclamation of drought affected habitats on both private and public land
in Texas.

        Our goal is:

        1.             To conduct and facilitate research to improve land management,
                       to reduce the impact of extreme events such as drought, and
        2.             To meet the needs of adapting to short-term, or long-term
                       measures to combat climate changes and weather variations.

    We propose to do this by providing an economically viable source of
Pongamia plants, and seeds, to both the private and public sector for the
establishment of Shelterbelt Enclosures. Once established, these enclosures
will assist the restoration of native plant communities, and provide increased
yield, by restoring fertility to degraded land.

     Productivity and income in agriculture is heavily influenced by climatic
conditions. So any changes in temperature, precipitation, water flows and
atmospheric content has a mixture of both positive and negative implications
for plant growth, livestock performance and water supply, as well as for soil
characteristics, pests and diseases.

   Thus, given the possible incidence of global climate change, the
agricultural industry in Texas is likely to face changing conditions, and may
be at risk for many years ahead.

    Any estimation of the effects of climatic change on agriculture is difficult
to assess. Agricultural production is influenced in numerous ways by the
forces which cause climate change, as well as by the altered climate
attributes. Habitat deterioration however, is generally caused by human
and/or animal activity, but it can be augmented by external stresses such as
droughts and the disruption of natural fire patterns.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 4                                                      09/09/2011


    For example, altered water cycles have resulted in major ecosystem
dysfunctions on some parts of the semi-arid Texas rangelands and
overgrazing during the past 250 years, combined with a reduction in
naturally occurring fires and frequent droughts, have disrupted the ecological
processes of nutrient cycling, energy flow, plant community dynamics, and in
particular, hydrologic processes. Changes in soil fertility, increased erosion
and compaction, have all contribute to decreased water infiltration and
increased run-off, resulting in lower vegetation diversity, reduced surface
coverage, and lower productivity.

    Over time, plant species may lose vigour and die, and as herbaceous
biomass decreases, the bare ground increases and the ecological processes
of water, nutrient, and energy cycling are disrupted. This results in lost
capacity and the plant community is unable to maintain itself, so further
deterioration occurs.

     Once the original native plant communities have been severely
disturbed, and the stable processes have been upset, invader plants soon
become established. Consequently, the plant community cannot easily, or
economically, be restored to its original state.

    The drivers that lead to these effects on agriculture can be grouped into
five categories:

•Temperature - Which affects plants, animals, pests and water supplies. For
example, temperature alterations directly affect crop growth rates, livestock
performance and appetite, pest incidence and water supplies in soil and
reservoirs among other influences.
•Precipitation - Which alters:
       a. The water directly available to crops,
       b. The stress crops are placed under in drought conditions,
       c. The supply of forage for animals, animal production conditions,
       d. The irrigation water supplies, and
       e. River flows supporting barge transport, among other items.

•Changes in atmospheric CO2, influences:
     f. The growth of plants by altering the basic fuel for photosynthesis,
        as well as,
     g. The water that plants need as they grow, along with the growth
        rates of weeds.

•Extreme events influence production conditions such as water supplies,
waterborne transport, and ports.

•Sea level rise influences ports and waterborne transport but it can also
inundate productive land.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 5                                                      09/09/2011
For more than 20 years, Texas has been actively involved in efforts to
combat dry-land degradation. State-wide it‘s a pretty grim picture,‖ said
Travis Miller, AgriLife Extension program leader, ―and it‘s not just Texas; it‘s
New Mexico, Oklahoma, Louisiana, and parts of Arkansas. It‘s an exceptional
drought across a big area.‖

Corn along the Gulf Coast is stunted and tasselling early, Miller said. ―It‘s in a
lot trouble. We‘re seeing leaves twisting from heat/moisture stress by
midday, and much of the Texas wheat crop has failed as well. Probably in the
order of 50 to 60 percent of the wheat crop won‘t be harvested, but from a
national standpoint, Texas is a ―minor player‖ in feed grains. But Texas
typically plants about half the cotton acreage in the U.S., so a large-scale
crop failure there could have an impact on prices. Cotton is typically planted
later than corn, and cotton growers ran into dry soil conditions as the
planting window opened. As a result, Miller said, a very small percentage of
the total cotton crop, under 20 percent, has been planted to date.

―The High Plains is right in the middle of their planting season, they normally
plant up to the first week of June. The dry-land farmers are waiting for rain.
The irrigated farmers have spent a lot of money and pumped a lot of water,
and we‘re seeing some planting in irrigated conditions.‖

But the process of assisting the recovery of the Texas ecosystem, once it has
been degraded, damaged, or destroyed, is a holistic process. This not only
involves revegetation, but may also entail the removal of non-native species,
the reintroduction of soil biota, (such as invertebrates, insects, and fungi),
and the implementation of management strategies that will help the system
function in a healthy manner. There can be little doubt that species-rich plant
communities are more resistant to drought than species-poor plant
communities, an important attribute in semi-arid habitats. Resilience, or the
rate of return to pre-drought conditions, is also greater in species-rich
communities because species-rich communities are commonly more
biologically productive than species-poor communities.

Increasing stability and water infiltration in the soil surface, initiates repair
and maintenance of the damaged processes that enhance plant production,
and also protects the soil surface with plants, grass or living vegetation, but
drought remains the biggest environmental problem impeding dry-land
development.

Although there have been many projects and community-based initiatives,
that have successfully addressed the problem. Policymakers, administrators,
staff, and beneficiaries of programmes to combat or prevent land
degradation, need to draw lessons and learn from successful intervention
programmes. Either from within their own territories, or from elsewhere, in
order to replicate or transfer them, taking into consideration of course their
national, local and cultural settings, in order to ensure that they will remain
successful.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 6                                                      09/09/2011


National, local and cultural differences, as well as changing circumstances
among stakeholders, may make it difficult to replicate, or directly transfer,
successful intervention programmes into new settings, without proper
adjustments.

Climate projection is inherently more difficult for a small sub-area of the
globe, than for the globe as a whole. This is particularly true for Texas, the
nature of whose climate changes throughout the year. Much of Texas can be
described as arid land, occasionally punctuated by floods caused by
hurricanes or Gulf Coast moisture but rainfall patterns are unpredictable, and
drought cycles can last for several years, with rainfall averages as low as
several inches per year.

Under most normal circumstances, Texas can expect two rainfall peaks,
which generally occur during May/June and September/October. But planning
for water needs, under the current drought conditions, is anything but easy.
Water demands by municipalities, industries, and agricultural irrigators
continue to escalate as the population increases.

The amount of water needed in rivers, streams, and coastal bays to support
fish and wildlife habitat is also an important issue. Many local economies
depend on these flows to provide income through fishing, hunting, and
tourism. The wide range of weather conditions that have already had
significant impacts on Texas further complicates matters. Partially, because
of this complexity, climate variations over the past century in Texas do not
correspond to the climate change expected from global warming, according
to present day climate change models. Local temperature changes due
entirely to global warming, may, by the middle of this century, become
strong enough to overwhelm the natural variability. This may lead to average
temperatures of 4°F warmer than those recorded in recent decades.

In the case of precipitation, observed variations over the past century are
already larger than most climate change projections forecast for precipitation
change by mid-century, and this is also unexplained. Thus, it cannot be said
with any certainty that future precipitation will be more, or less, than the
present-day precipitation in Texas.

Rangeland degradation may be defined as the loss of utility or potential
utility or the reduction, loss, or change of features of rangeland ecosystem,
which cannot be replaced. In general, Texas rangeland degradation implies a
reduction in the value of the land or its agricultural status.

Rangeland degradation includes a loss of top-soil, a change to a simple
floral/fauna composition, or a transition from one organic form to a lower
organic form, and a continuous reduction of productivity/biomass of the
ecosystem. Generally speaking, lower biological diversity exists today in
degraded Texas rangeland, but there is still much research work to be done
on this issue.
  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 7                                                      09/09/2011


Looking at just the ecology, degradation can be treated as a retrogression of
an ecosystem, and the recovery of degraded rangeland as secondary
succession. The difference between degradation and fluctuation can be found
in their temporal scales and resilience, but once rangeland has started to
degrade, it is possible to rehabilitate most of it, and thus restore it to a level
of utility if one acts fast enough. Possibly not as good as its original state,
but better than it was in its damaged state. However, being able to run more
cattle per acre is just one benefit.
   By actively planning and managing the grazing, and the recovery of the
plants, as opposed to allowing continuous grazing, ruminants become part of
the solution rather than a burden to the land.

    The dynamic is as follows: the animal chews the grass which stimulates
plant and root growth, and allows sunlight to get through to the growth
points. Then move the herd on, (in a leisurely way), to find fresher grass, or
(with a pounding of hooves) to elude a predator. When domestic livestock
are managed to replicate this behaviour on degraded lands, the grasses
come back: the deep-rooted plants enrich and aerate the soil and the hoof
movements chip away at hardened earth so that seeds can germinate and
grow and water can penetrate.

Rich, aerated soil is productive, it retains water, and, highly significant in
environmental terms, is a carbon sink. Healthy grasslands represent the
ecosystem with the highest potential for carbon sequestration of any on the
planet, and grasslands cover more than 45% of the U.S. This has important
implications for reducing atmospheric CO2. Plus, soil carbon plays a vital role
in sustaining water supplies, which are perilously threatened in much of the
West. Every one percent increase in soil carbon holds an additional 60,000
gallons of water per acre, water which infiltrates the ground and replenishes
groundwater sources and springs reappear.

   This paper seeks to raise awareness that land degradation in Texas, as a
result of drought, can be prevented, and in some cases reversed.

   The author has documented, evaluated, and disseminated information on
projects that have succeeded in the global battle against land degradation,
and desertification. This Texas initiative reiterates the recommendation of
sustainable development through community participation, exploitation of
knowledge, capacity building, awareness raising and replication of the
practices that have been judged best for achieving these goals.

    This initiative also aims to foster the communities‘ confidence in their
own abilities to solve land-management problems, and to encourage them to
take responsibility for the local environment. But to be considered as a
success story, any project must be judged on its ability to contribute directly
and substantially to the prevention of land degradation, or to the
rehabilitation of degraded land.
  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 8                                                      09/09/2011


It should also address both biophysical and socio-cultural–economic issues,
involve local communities at all stages, have the potential for replicability
under similar environmental and socio-economic conditions, and be
sustainable in the long term.

EXECUTIVE SUMMARY

    Today, the worst Texas drought in 44 years is not only damaging the
state‘s wheat crop, it is forcing ranchers to reduce cattle herds, creating
rising demands for U.S. food, and sending grain and meat prices higher.

    Texas, the biggest U.S. cattle producer, and second-largest winter-wheat
grower, got just 4.7 inches of rain on average in the five months through
February, the least for the period since 1967. State Climatologist John
Nielsen- Gammon said that more than half the wheat fields and pastures
were rated as poor or very poor condition when assessed on March 20 this
year.

    Dry conditions, extending to Oklahoma, Kansas and Colorado, may cut
crop yields in the U.S., the world‘s largest exporter, just as much as too
much moisture threatens the fields in North Dakota and in Canada. This,
after drought in Russia, and floods in Australia, will hurt output, and sent
global food prices surging. Wheat futures in Chicago are up 50 percent in the
past year, wholesale beef reached a record this week, and the U.S. cattle
herd in January was the smallest since 1958.

   ―We‘re probably already seeing some damage, but in the next couple of
weeks, we‘ll surely go downhill major if we don‘t get some rain,‖ said David
Cleavinger, who is irrigating 75 percent of his 1,000 acres (405 hectares) of
wheat in Wildorado, Texas. ―With the prices we‘re seeing, we‘re trying to
hold on, but there‘s nothing that takes the place of a rainstorm.‖ Cleavinger,
53, has a 3,500-acre farm that includes corn and cotton.

   Drought is one of most serious environmental and social-economic
problems in Texas, which has been suffering for a long time. As a result it
has brought about environmental deterioration, and land degradation, which
have resulted in heavy losses to much of the farming economy.

   Things are so serious that surely, now must be the right time to consider
projects which may combat the effects of drought.

   According to research into farming practices over the last 20 years, land
degradation is the result of interaction between excessive human activities,
and a vulnerable environment. Of course the causes leading to land
degradation and varied, but there are two important factors which can be
recognized. What we call the ‗natural factor‘ and ‗human factor‘.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 9                                                      09/09/2011


    The combination of these two factors is one of the major causes of land
degradation, but the human factor is more important than the natural one. It
is possible to combat land degradation in Texas, but only if we can manage
the human impacts in the process, because we can do very little to change
the natural impacts.

   During the last five decades, the amount of degradated land in Texas has
expanded. But the methods used to combat land degradation have improved
over time, and some degradated land has been recovered, and it can now be
used once again for farming, or as grassland.

   However, despite these measures, the amount of degradated land has
actually increased, although the increased amount is rather low when
compared with the expanded areas.

     Only in about 10% of degraded land have the current measures
illustrated that land degradation can be controlled. What Texas needs is the
confidence to seek out new ideas and methods, and then take the
appropriate action.

   Based on personal research, and on the established practice of combating
land degradation, the information to hand suggests that the overall strategic
method for sustainable development should follow the guiding principle of,
―taking prevention first.‖

   Attention should be paid, not only to the recovery of the existing
degradated land, but even more importantly, to the prevention of even more
land degradation. So adopting preventative actions to protect degraded
pastureland, and light soil eroded land, means voluntarily enforcing
supervision and monitoring activities, to minimize land degradation resulting
from irrational human activities.

    Using key affected areas as a basis to promote work in the entire area,
such as undertaking comprehensive management, and promoting recovery
work from the nursery unit to large areas. For combating wind erosion and
induced land degradation, steps should be taken to promote the
establishment of shelterbelts in different locations, and, step by step,
increase the area involved.

   Combating land degradation should be closely combined with economic
development, and development should be used to promote combating land
degradation. For instance, according to the local eco-environmental features
favourable, either for combating land degradation, or favourable for
economic development, the principle of "protective tree planting, commercial
animal husbandry and self-sufficient farming" should be suggested for the
farming areas experiencing the worst drought.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 10                                                     09/09/2011


     Harmonized ecological benefits with social and economic benefits.

   When the three benefits are in inconsistency, the need of ecological
benefits should be satisfied first, because it concerns not only the overall
long-term benefits, but also the sustainable development of the degradated
area. The immediate economic benefits should not be taken into account at
the expense of long term environmental benefits.

    During the process of large-scale afforestation, and of the reclamation of
degraded areas for food production, attention should be paid to the methods
used to prevent the environmental deterioration of the ground water table.
In Texas, unpredictable rainfall is a serious challenge, and while some
variability is easy to work around, long-term droughts seriously impact
restoration efforts by killing newly planted seedlings, or transplanted plants.

    Keeping in mind that rainfall varies, even within the region, and
restoration techniques that work well along the Gulf Coast may not produce
results further inland, realistically, even the best restoration projects will not
duplicate the diversity and plant species composition of the original native
plant communities. Most of these communities will require hundreds, if not
thousands, of years to reach their present composition and structure.
However, once damaged, their restoration will require some time before they
can function independently. For these reasons, it is important to protect any
remaining trees in Texas.

    Although this project suggests that farmers and landowners in Texas
should consider using Pongamia shelterbelts to protect, and help to convert
the land back into productive agricultural land, so enhancing the State‘s
food-production capacity, and the creation of new employment opportunities.
It has been tried before. In response to the devastating droughts of the
1930s, on July 21, 1934, Pres. Franklin D. Roosevelt instructed the U.S.
Forest Service to initiate the Prairie States Forestry Project.

    The project's mandate was to plant shelterbelts in six Great Plains states
to protect crops and wildlife from wind, intercept blowing snow and sand, and
provide wood products. Roosevelt secured the funds by executive order
through the Works Progress Administration (WPA).

   The Forest Service located the project headquarters in Lincoln, Nebraska,
and Oklahoma City was the project headquarters for Oklahoma, with district
offices in Elk City, El Reno, Mangum, and Enid. The original project counties
were Beckham, Custer, Dewey, Ellis, Greer, Harmon, Harper, Jackson, Major,
Roger Mills, Washita, Woods, and Woodward, but by 1939 the project added
Beaver, Blaine, Caddo, Canadian, Comanche, Garfield, Kay, Kingfisher, and
Noble. On March 18, 1935, the program's first shelterbelt was planted on the
H. E. Curtis farm near Mangum.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 11                                                     09/09/2011


    Each project was a cooperative venture between the farmer, and the
federal government. Farmers desiring a shelterbelt made application, after
which sites were evaluated for suitability. If admitted to the program, the
cooperating farmer agreed to furnish land and fencing material, prepare the
site for planting, cultivate the trees, and control rodents. Cultivation reduced
competition from weeds and grasses, until the trees were able to shade them
out. The federal government used WPA crews to build fences, plant trees,
and provide technical advice and materials for rodent control.

   The shelterbelts varied in length, ranged from 100 to 165 feet wide. Rows
were planted ten feet apart, with tall trees in the centre, flanked by rows of
short trees along the sides, and shrubs in the outside rows. Black locust,
catalpa, Chinese elm, cottonwood, green ash, hackberry, honey locust,
mulberry, Osage orange, pecan, plum, Russian olive, red cedar, and walnut
were planted. But the maximum protection was afforded by the trees which
reached twelve to twenty feet in height.

   Some shelterbelts failed, and the land was subsequently ploughed up by
farmers. Failure resulted from drought, grasshopper infestations, and
improper cultivation.

   In 1935 the tree survival was 71.5 percent and in 1936, 73.5 percent, but
when the maintenance was turned over to the farmers in 1937, survival rates
dropped to 62 percent and to 61.3 percent in the following year. However,
despite this, when the project closed on June 30, 1942, 145 million trees had
been planted in 18,600 miles of shelterbelts in a one-hundred-mile-wide zone
from Canada to the Brazos River.

    I believe we should now encourage farmers and landowners in Texas to
once again establish shelterbelt enclosures on their land using the Pongamia
tree, but with minimum input by the government.

   Government support should be limited to technical advice through an
extension programme, and the supply of planting materials.

     Why Pongamia?

    Scientists studying global climate change recognize the importance of
vegetation in removing carbon dioxide from the atmosphere, and in local
cooling through transpiration, but they have always assumed that plants and
trees first suck the water out of the soil before spewing water vapour back
into the atmosphere. A new study by Todd Dawson, professor of integrative
biology at UC Berkeley, shows that Pongamia trees use water in a much
more complex way. Their long tap roots transfer rainwater from the surface
to reservoirs deep underground, and later they redistribute the water
upwards after the rains, to keep the top soil layers moist, thereby
accentuating both carbon uptake and localized atmospheric cooling during
dry periods.
  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 12                                                     09/09/2011


   This effect, which is called transpiration, increases photosynthesis and the
evaporation of water from plants by 40 percent in the dry season when
photosynthesis would otherwise be limited.

    ―This shifting of water by roots has a physiological effect on the plants,
letting them pull more carbon dioxide from the atmosphere as they conduct
more photosynthesis," said professor Dawson. "Evapotranspiration stays
higher than previously expected during the prolonged dry season, because of
the underground reserve of water banked during the wet season by the tap
roots, just as perspiration cools us off. Increased transpiration by trees in
June and July probably explains why temperatures drop in the Amazon."

   This effect changes the way the atmosphere heats and cools, and it will,
over time, change the way rain is distributed, professor Dawson noted.

     Depending on the extent to which trees redistribute water in the soil, the
impact on global climate could be significant. Trees have long been known to
lift water from the soil to great heights, using a principle called hydraulic lift,
with energy supplied by the evaporation of water from leaf openings called
stomata.

   However, twenty years ago, some small plants were found to do more
than lift water from the soil to the leaves - they also lifted water from deep
underground using their tap roots and deposited it in shallow soil for use at a
later time. They reversed the process during the rainy season by pushing
water into storage, deep underground. In 1990, Dawson discovered that
Pongamia trees do this most efficiently using their 13m long tap roots, and to
date, this so-called hydraulic redistribution has been found in more than 60
separate deep rooted plant species.

    Earlier this year, Dawson discovered that Pongamia trees, amongst
others, use hydraulic redistribution to maintain the moisture around their
shallow roots during long dry seasons. During the wet season, these plants
can store as much as 10 percent of the annual precipitation as deep as 13
meters (43 feet) underground, to be tapped during the dry months. "These
trees are using their root system to redistribute water into different soil
compartments," Dawson said. "This allows the trees to sustain water use
throughout the dry season."

    The process is a passive one, he noted, driven by chemical potential
gradients, with deep tree roots acting like pipes to allow water to shift
around much faster than it could otherwise percolate through the soil. In
many plants that exhibit hydraulic redistribution, the tap roots are like the
part of an iceberg below water. In some cases these roots can reach down
more than 100 times the height of the plant above ground. Such deep roots
only make sense if their purpose is to redistribute water during the dry
season for use by the plant's shallow roots.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
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contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 13                                                     09/09/2011


    Dawson suspects that the real reason for keeping the surface soil moist is
to make it easier for the plant to take in nutrients. The increased moisture in
the soil created by hydraulic redistribution during the dry season, allows the
Pongamia to carry on photosynthesis at a higher rate, leading to greater
carbon uptake. This also leads to greater evaporation of water from the
leaves, which takes heat with it. Thus, the summer dry-season temperatures
in a Pongamia plantation are cooler than would otherwise be expected.

    Drought is one of most serious environmental and social-economic
problems in Texas, which has been suffering for a long time. But any climatic
change from shelterbelt protection would of course be local, rather than
regional. Whilst it is true that no one has yet proven that tree planting and
cultivation increases precipitation, and that the theory is at best
"problematical," trees do help to control the environment. They do this by
modifying the extremes of heat and cold, and by preventing the evaporation
of moisture from the soil.
The effect of growing Pongamia species on arid zone soils
Introduction
    Millettia Pinnata is a species of tree in the pea family Fabaceae. Native to
tropical and temperate Asia, including parts of India, China, Japan, Malaysia,
Australia and Pacific islands, it is often known by the synonym Pongamia, but
it was moved to the genus Millettia only recently.
   The pea family Fabaceae contains around 45 species of trees and shrubs
found in subtropical and tropical regions of the Americas, Africa, Western
Asia, and South Asia.

    Not only do they thrive in arid soil but they are also resistant to drought,
some developing extremely deep root systems. Their wood is usually hard,
dense and durable. Their fruits are pods which may contain large amounts of
oil or sugar.

    Pongamia tree vegetation, during the course of its establishment, initiates
a series of changes in ecological and soil physico-chemical characteristics.
These changes are dependent upon the type of vegetation, the rooting
pattern, canopy architecture, type and quantity of litter fall. Also, the
nitrogen fixing ability of arboreal vegetation has a great influence on the
fertility and moisture status of the soil.

    Nair (1984, 1987) documented the effects of trees on soils in different
parts of the world, and he showed that different mechanisms operate in
assessing the role of trees in soil productivity. The magnitude of the
beneficial, or the adverse, effects that could be experienced will depend upon
a number of site specific factors. Moreover, many of the attributes of trees,
as compared with annual crops, can only be realised over long periods of
time.


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Author John M Jeapes         Confidential         Page 14                                                     09/09/2011



   This paper summarises the possible beneficial effects of Pongamia species
on soil productivity parameters in the arid ecosystems of Southern Texas.

Amelioration of soil fertility

    One of the advantages commonly attributed to shelterbelts in agro
forestry is the potential for soil fertility improvement through more efficient
cycling of nutrients, a better soil moisture regime and a higher activity of soil
micro-organisms. In general, in arid and semi-arid lands, improvement in
inherent soil fertility is a slow process. Aggarwal et al. (1976) studied soil
fertility changes under a 15 year old stand of Pongamia.

   The results showed the highest levels of organic matter and macro and
micro nutrients under P. Millettia, with only levels of iron reduced. This could
be related to the correlation with higher populations of micro-organisms
under this species rather than in the open field situation. Soils from below
the leaf litter of the species did not differ in nutritional status.

    Singh and Lal (1969) also reported a significant improvement in the
fertility status of soils under P. Millettia in arid regions, and attributed this
effect to variations in litter fall, ground flora and the root systems of this tree
species.

     Aggarwal and Kumar (1990) studied the relative availability of nutrients
from soil beneath P. Millettia over open field conditions and showed that the
relative yield of pearl millet was 2-3 times higher than in the open field soil.
The efficiency of applied nitrogen increased from 27% in the open field to
46% in soil under P. Millettia. The gradual accumulation of mineral nutrients
by this tree, and the incorporation of these into an enlarged plant-litter-soil
nutrient cycle, seems to be the mechanism responsible for this soil
enrichment.

     The higher content of nitrogen, in relation to organic carbon, seems due
partly to the nitrogen fixed by P. Millettia during the course of its growth
(Virginia, 1986) and also due to the higher content of nitrogen in P. Millettia
leaf litter. Reviewing the role of nitrogen fixation in MPTS, Dommergues
(1987) concluded that the potential direct and ancillary benefits from
nitrogen fixing trees vary greatly, depending on the species, climate, soil and
management practices, and suggested selection of tree species which have
high nitrogen fixing potential which are also adapted to the site conditions.

    The review of Juo and Lal (1977) compared the effects of a P. Millettia
fallow versus a bush fallow, on selected soil chemical properties on alfisols in
western Nigeria, and found a significant increase in the cation exchange
capacity and levels of exchangeable calcium and potassium under Fabaceae.
Cation-exchange capacity is defined as the degree to which a soil can adsorb
and exchange cations.


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only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 15                                                     09/09/2011



Cation-a positively charged ion (NH4+, K+, Ca2+, Fe2+, etc...) Anion-a
negatively charged ion (NO3-, PO42-, SO42-, etc...)

    Soil particles and organic matter have negative charges on their
surfaces. Mineral cations can adsorb to the negative surface charges or the
inorganic and organic soil particles and once adsorbed, these minerals are
not easily lost when the soil is leached by water, and they also provide a
nutrient reserve available to plant roots. These minerals can then be
replaced, or exchanged by other cations, (i.e., cation exchange), which
suggests that some tree and shrub species can selectively accumulate certain
nutrients, even in soils containing very low amounts of these nutrients, and
therefore such species have an important role to play in agro forestry
systems.

Table 1. Soil fertility under mature stands of P. Millettia and P. Juliflora, and
in adjacent open fields on an arid sandy soil.

                                        Nitrogen            Macro-nutrients                    Micro-nutrients
                       Organic                                 (kg/ha)                             (ppm)
 Species
                       matter
                                        %              N               P                  K       Zn Mn          Cu Fe

P.               0.57                   0.042          250             22.4               633 0.6 10.0 0.5 0.3
Millettia

P.               0.39                   0.033          212             10.3               409 0.5 7.5            0.5 2.6
Juliflora

Open             0.37                   0.020          203             7.7                370 0.2 6.9            0.3 3.0
field

Table 2. Microbial population (total numbers per g dry surface soil) under 2
Pongamia species in an arid sandy soil.

  Species         Bacteria Fungi Actinomycetes Nitrifying bacteria
                  (x105/g) (x103/g) (x105/g)         (MPN/g)

P. Millettia           32            29                     16                    1.430

P.Juliflora            20            16                     10                    1.030

Open field             15            10                     7                     0.450




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Author John M Jeapes         Confidential         Page 16                                                     09/09/2011



Improvement in soil physical conditions

     Over time, the growth of MPTS (Multipurpose Tree Species), can also lead
to improvements in physical attributes of soil such as infiltration rate, water
holding capacity, and moisture availability through the indirect effects of
litter fall, understory growth and root distribution, depending on the species
and site conditions. Aggarwal et al. (1976) and Gupta and Saxena (1978),
studied the effects of trees on soil physical characteristics after 15 years
growth and observed higher moisture content in soils under the canopy of P.
Millettia than under P. Juliflora.

     This was attributed to relatively higher organic matter content, litter fall,
and a deeper root distribution, confirmed by a higher depletion of moisture
from deeper layers under P. Millettia, compared to the surface spread of
lateral roots of P. Juliflora which depleted moisture from shallow soil layers.

   Hazra (1989) also reported an increase in field capacity from 14.1% to
16.2% and a decrease in bulk density from 1.58 to 1.37 g/cm3 in soil under
the canopy of P. Millettia as compared to the open field.

Soil conservation

    Along with the improvement in soil fertility, soil physical and micro-
climatic conditions, the trees play an important role in soil binding processes
and the reduction in the eroding action of both water and wind. Gupta et al.
(1984) observed a 36% reduction in the magnitude of wind erosion behind a
P. Millettia shelterbelt in western Rajasthan. In a 3 month period from April
to June, mean soil loss over a 2 year period (1979-80) was 351.2 kg/ha on
leeward of the shelterbelt and 546.8 kg/ha in adjacent unprotected soil.

Conclusion

    P. Millettia, with its long taproot system, has the potential to improve soil
fertility in Texas. Native trees have a lower potential for improving soil
conditions because they have a spreading lateral root system, which would
be more suitable for the revegetation of wastelands and sand dunes, and not
for use in shelterbelts, nor especially, for arresting sand and soil movement.
In addition to soil improvement, the principal effect of planting Pongamia
trees in Texas is expected to be an increase in the water table.

     Why should this be?

   Because Pongamia Tap roots are deep seated, they not only store water,
they also mine water for their need, even from a depth of 33feet, without
competing with other crops. Pongamia is also a drought resistant tree, and
when established it will check the wind and lessen evaporation in the
immediate vicinity.

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Author John M Jeapes         Confidential         Page 17                                                     09/09/2011


   It also may also "ameliorate the dryness of the atmosphere," which
suggests that the agricultural land in its vicinity may therefore receive a
greater amount of precipitation.

    There can be no doubt that drought has brought about environmental
deterioration and land degradation in Texas, which has caused heavy losses
to the farming economy. Perhaps it is the right time to re-examine the value
of shelterbelt projects using Pongamia as a method of combating the effects
of drought.

   Altered water cycles are major ecosystem dysfunctions on semi-arid
South Texas rangelands. Overgrazing during the past 250 years, combined
with a reduction in naturally occurring fires and frequent droughts, disrupted
the ecological processes of nutrient cycling, energy flow, plant community
dynamics, and in particular, hydrologic processes.

   Changes in soil fertility, increased erosion, and compaction contribute to
decreased water infiltration and increased runoff, resulting in lower
vegetation diversity, reduced surface coverage, increases in brush, and lower
productivity.

   Over time, plant species may lose vigor and die. As herbaceous biomass
decreases and bare ground increases, ecological processes of water, nutrient,
and energy cycling are disrupted. This results in lost capacity for the plant
community to maintain itself and further deterioration occurs. After original
plant communities have been severely disturbed, stable processes have been
upset, and invader plants have become established, the plant community
cannot easily or economically be restored to simulate its original state.

    According to research into farming practices over the last 100 years, land
degradation mainly results from interaction between excessive human
activities and a vulnerable environment. Thousands of acres of rangeland in
South Texas have been manipulated with numerous mechanical methods that
have over time negatively impacted soil properties. Root plowing, for
example, is commonly used for brush removal.

    In some areas of South Texas where the layer of topsoil is thin, root
ploughing can rearrange the soil profile that contains the greatest percentage
of the seed bank. This brings clay to the surface which often produces a
hard, compacted surface or ―hard pan,‖ making it difficult for water to
penetrate. Because mechanical treatments alter soil properties, historical
mechanical alteration of the habitat should be taken into consideration before
implementing restoration efforts.

    Overgrazing has also affected South Texas soils. Continuous overuse of
rangeland vegetation by too many grazing and browsing animals has led to
loss of organic matter, increased soil compaction, and the loss of fertility in
too many areas.
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Author John M Jeapes         Confidential         Page 18                                                     09/09/2011


    The long-term absence of vegetation caused by this heavy grazing
coupled with drought, has also led to erosion problems in some areas of
South Texas. Areas that have undergone extensive erosion have lost viable
topsoil, and they may now require significant soil rebuilding efforts in order
to implement restoration strategies.

    A land degradation reversion process can only be realized by a series of
land use readjusting measures, and new patterns of pasturage-agriculture
interlacing models. The maintenance of plant health and vigor is critical in
the first two years of any restoration project. So careful management of
stocking rates and grazing durations are important considerations, and as a
general rule, recently reseeded or restored rangeland with the shelterbelt
enclosure should not be grazed for a minimum of 2 years. As with all
rangeland practices, this period will vary from region to region based on
climatic factors such as annual rainfall and soil type and in some cases, some
newly restored areas may need to be rested as much as 4 years.

   Perennial grasses, forbs, and shrubs may need several years to establish
root systems and have enough growth above ground level to withstand
removal by grazing.

    Following 2 years of total rest within the shelterbelt enclosure, if the plant
community has become established, the area can be grazed, based on a
sound grazing plan. Stocking rates should be based on the objectives of each
restoration project.

   In this rangeland/farmland interlaced belt, there are generally three
major types of severely degradated land. Each different type has its own
cause of desertification and characteristic fragilities, and needs a specific
model for transformation.

    The emphasis of this document is to provide a basic understanding of the
purpose and processes involved in establishing Pongamia shelterbelt
enclosures in Texas. It does not contain suggestions for every property, for
every possible revegetation scenario or plant species native to Texas, nor
does it describe in detail the potential harvest and biodiesel benefits of the
Pongamia seed. Knowledge regarding the potential of, and the benefits of
using Pongamia, will continue to increase over time through the
implementation of restoration strategies and continued experimentation.

     I hope this guide serves as a good place to begin.

Status and process of land degradation

    Land degradation is recognized as an environmental and social-economic
issue, and it attracts attention from all over the world.


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Author John M Jeapes         Confidential         Page 19                                                     09/09/2011


    Most of the area subject to degradation suffers from high pressure
intensive human impacts.

   Viewing the current situation as a whole, the degree of degraded land has
become more serious as a direct results of drought which continues to
expand in Texas, stunting crop growth, delaying planting and putting
additional stress on livestock producers. According to Texas AgriLife
Extension Service personnel, as of March 22 2011, the U.S. Drought Monitor
ranked 29 percent of Texas as being under an extreme drought, and more
than another 30 percent as being under severe drought. Overall, according to
the monitor, 98 percent of the state is abnormally dry.

     According to the statistics of areas with different land use purposes,
human impact, the limited rainfall, and dynamic wind have all played a key
role during periods of drought. The challenges are still great, but they differ
in nature in the various communities. Measures to combat and prevent land
degradation have been used for years, but new challenges, such as the
increasing water scarcity and aridity, and the loss of the vegetative cover are
still emerging.

    The semi-arid areas of Texas, characterized by low and high variable
rainfall, high evapotranspiration, strong wind and low humidity, are becoming
more and more hostile environments for the survival of people, animals and
plants. A great deal of the productive land in the region has now become
marginal pasture, which is at risk of becoming irreversibly degraded if
brought into cultivation. There can be no doubt that the region is faced with
serious environmental challenges, and these could easily translate into more
degradation and desertification, if timely action is not initiated.

    The available evidence shows that the design and implementation of new
and successful programmes is possible, and they can provide wide-ranging
benefits. However, this does not imply that these programmes are cost-
effective, are easily replicable, or can simply be adapted to fit successfully in
new settings. Nonetheless, the most successful programmes have three
major elements in common that are worthy of replication, and each can
contribute to the success of other intervention programmes:

       (a) They have all relied on, and encouraged the use of, local inputs
and resources, including staff and technologies which have been active for a
long time and have provided regular benefits to their stakeholders (expertise,
trust, stability and entitlements);

       (b) They have all encouraged coordinated action by groups and
concerned communities at the local level; by fully involving them in the
decision-making and implementation process (collective action and
participatory approach);


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Author John M Jeapes         Confidential         Page 20                                                     09/09/2011


      (c) They have all relied on the strong, well-planned and well-targeted
support of public institutions, which have worked in partnership with
concerned stakeholders or beneficiaries (aspects easily replicable).

THE OBJECTIVES OF THE PONGAMIA SHELTERBELT PROJECT

     This project suggests using shelterbelts of Pongamia for the protection of
arable lands against drought, winds, and hard pan, the provision of water for
irrigation, improvement of rangeland, and the enhancement of living
standards for the communities living in the area.

BACKGROUND TO THE PROJECT

    The project area is where the most serious drought covers parts of Texas,
including all of the Colorado River basin, where the month of March ended as
one of the driest on record, and most locations recorded less than a quarter
inch of rain.

    In Austin, March rainfall was less than a tenth of an inch. This ranked as
the 4th driest March since 1856. In addition, rainfall between October 1st
and mid-April has generally been less than one-third of normal.

    With very little rain and frequent periods of strong winds, drought
conditions continue to strengthen. According to the National Drought Monitor,
on April 21 almost all of the Colorado River basin was in extreme drought.
Much of Bastrop, Lee and Fayette Counties are in exceptional drought, the
most severe drought category. This is the largest and most severe
classification of drought across the Colorado basin since September 2009.

   Along with the lack of rain, the temperatures this spring have been much
warmer than normal. As a result, soil moisture is very low, stock pond levels
are dropping fast, and evaporation rates are high.

    This extended period of very dry weather has also seriously impacted
inflows to the Highland Lakes. Over the last six months, inflows have been
lower than the average monthly inflows for a six-month period during the
worst drought on record, which occurred between 1947 and 1957. While in
company with lakes Travis and Buchanan, the region‘s water supply
reservoirs, are below average for this time of year, although they are still
higher than they were at the start of summer in the most recent extreme
drought year of 2009.

    Long-range weather forecasts indicate rainfall will likely remain below
normal through spring and early summer as the storm track generally stays
to the north of Texas. With little rain in the forecast, drought conditions will
likely grow worse in the coming weeks.


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Author John M Jeapes         Confidential         Page 21                                                     09/09/2011


     Habitat deterioration is generally caused by human and/or animal
activity, and can be augmented by external stresses such as droughts or
disruption of natural fire patterns by human activities. Altered water cycles
are major ecosystem dysfunctions on semi-arid Texas rangelands.

    Overgrazing during the past 100 years, combined with a reduction in
naturally occurring fires and frequent droughts, disrupted the ecological
processes of nutrient cycling, energy flow, plant community dynamics, and in
particular, hydrologic processes. Changes in soil fertility, increased erosion,
and compaction contribute to decreased water infiltration and increased
runoff, resulting in lower vegetation diversity, reduced surface coverage,
increases in brush and lower productivity.

   Over time, plant species may lose vigor and die. As herbaceous biomass
decreases and bare ground increases, ecological processes of water, nutrient,
and energy cycling are disrupted. This results in lost capacity for the plant
community to maintain itself and further deterioration occurs.

     After original plant communities have been severely disturbed, stable
processes have been upset, and invader plants have become established, the
plant community cannot easily or economically be restored to simulate its
original state. The Society for Ecological Restoration defines restoration as
―the process of assisting the recovery of an ecosystem that has been
degraded, damaged, or destroyed.‖ Restoration is a holistic process which
not only involves revegetation, but also entails the removal of non-native
species, the reintroduction of soil biota (such as invertebrates, insects, and
fungi), and the implementation of management strategies that will help the
system function in a healthy manner.

   Increasing stability and water infiltration in the soil surface initiates repair
and maintenance of damaged processes that enhance plant production and
protect the soil surface with plant litter or living vegetation.

    It is evident from the above analyses that land degradation in Texas has
led to a loss of productive land, which is affecting sustainable economic
development in farming-pastoral, pastoral, dry farming areas. Things are not
looking pretty, and there seems to be no way of alleviating the already
severe drought gripping Central Texas.

    Although the current dry spell is nowhere near as severe as it was two
years ago, the weather expert with the Lower Colorado River Authority says
things do not look good and he does not expect more rain soon in the Austin
area. ―If you look at the national drought position in March, it shows that
drought persisted across much of the region, and will do so over the next
three months," LCRA Meteorologist Bob Rose says. ―Looking ahead to next
summer, we may have to look to the tropics once again to see the possibility
of some relief.

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Author John M Jeapes         Confidential         Page 22                                                     09/09/2011


     Early indications are that we will see some above-normal season of
activity in the tropics, but mostly dry conditions will continue well into spring
but temperatures averaging a little bit above normal. Pockets of Texas are
already in much worse condition. That includes parts of west Texas and an
area east of Giddings and near College Station.‖

   The US Government attaches great importance to the various ways of
combating land degradation and substantial work has already been done and
certain achievements and experience have been gained.

    But the time has come to evaluate, not only the status of, but also the
problems that exist in combating land degradation in the USA. We also need
to analyze examples, and summarize experiences currently found in
combating land degradation in different types and forms and under different
conditions, so as to provide a scientific basis for the formulation of action
programs.

    To tackle land degradation problems in a comprehensive way, eco-
environmental assessment of construction projects should be strengthened,
and work on ecological demonstration plots aimed at sustainable
development in land degradation areas, should be carried out now.
Generally, problems such as inadequate tree areas, grassland degradation,
land desertification, etc. still exist in Texas. Therefore a further strengthening
of eco-environmental and biodiversity is still an important task confronting
the government.

    Concerns about conservation of tropical rainforests and other well-known
regions of the world are widely publicized, yet the conservation of a region of
inestimable biological wealth lies relatively unrecognized on the back
doorstep of North America. This region lies south of a line from Port O‘Connor
to Victoria, northwest to San Antonio and west to Del Rio. Known collectively
as ―South Texas‖ this is one of the most biologically diverse regions in the
world. In fact, it is termed ―hyper-diverse‖ by many ecologists, and is
considered by some as one of ―the last great habitats‖ remaining intact in
North America.

   The diversity of native South Texas habitats ranges from the fine sands of
the Coastal Sand Plain to the caliche ridges of the Bordas Escarpment; and
from the riparian woodlands of the Nueces River to the shrub lands of the Rio
Grande Plains.

     This diversity supports a wide array of wildlife species, ranging from
migratory birds such as sandhill cranes and piping plovers, to more
permanent residents such as ocelots and white-tailed deer. Native plants are
intrinsic to the overall resilience and stability of this unique region, and are a
critical component of the numerous food and energy cycles that maintain this
biological diversity.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
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contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 23                                                     09/09/2011


About Invasive Species and Non-native Plants

    An ―invasive species‖ is defined as a species that is:
 1) Non-native (or alien) to the ecosystem under consideration and
 2) Whose introduction causes or is likely to cause economic or
environmental harm or harm to human health (definition from Executive
Order 13112).

    A plant may be invasive under certain soil and/or environmental
conditions, but not others.

   Establishment and restoration effort using Pongamia in support of native
South Texas plants will help maintain the region‘s important phytogenetic
resources and the ecosystems that are part of South Texas‘ biological
heritage.

     It is worth repeating that generally, species-rich plant communities are
more resistant to drought than species-poor plant communities, an important
attribute in semiarid habitats. Resilience, or rate of return to pre-drought
conditions, is also greater for more species-rich communities.

   Species-rich communities are commonly more biologically productive than
species-poor communities.

     Benefits of growing Pongamia in South Texas

    With a calorific value of 4600 kcal per kg, Pongam is commonly used as
fuel wood. Its wood is beautifully grained and medium to coarse textured.
However, it is not durable because it is susceptible to insect attack, and
tends to split when sawn. Thus the wood is not considered a quality timber.
The wood is generally used for cabinet making, cart wheels, posts,
agricultural implements, tool handles and combs.

     The Pongamia tree is drought-resistant and insect-resistant, with a deep
tap root that grows down to more than 32.5 feet where water exists. Even in
dessert-like terrains, it flourishes in the most desolate places - but that‘s not
all. The seeds that are produced by the trees can be pressed into oil that can
be used to fuel farm machinery and even cars and trucks.

    Because the production of bio-fuels is a relatively new development, most
information is gathered by a literature study of academic papers, technical
reports and Internet websites, all of which contain what can best be
described as hype. But in most developed areas of the world, including
Texas, the primary source of energy is still fossil energy from oil and gas. In
fact most farmers still use large amounts of fossil fuels to run their farm
machinery and irrigation systems. Some estimates suggest that about 17%
of our fossil energy expenditure supports our food system.

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for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 24                                                     09/09/2011


    Energy is also used to manufacture the fertilizers and pesticides needed
by farmers, as well as powering food processing and food transport systems.

    But fossils fuels are a finite resource and once gone, their supplies cannot
be replenished. Numerous studies indicate that the mighty U.S. has only
about 20 years of oil reserves, and about 30 years of natural gas reserves
left, given current levels of use. But a steadily increasing population, such as
that currently being experienced in

    Texas, places even greater demands on limited supplies, while requiring
more and more oil to be imported. According to the U.S. Department of
Energy, about 60% of the current US oil supply is being imported, and nearly
100% will be imported by 2015 and in our lifetime, and certainly in our
children's, we will witness the depletion of the world‘s oil reserves.

     As US domestic oil supplies grow increasingly scarce, the price of
gasoline and associated products will inevitably rise. Then, both the high cost
and the limited availability of oil and other fossil fuels will restrict all human
activities, including the expansion of intensive agriculture. Farmers will need
to produce even more food to feed the growing population, but will lack the
energy resources to expand the agriculture systems.

    A possible solution for these problems is of course to produce renewable
alternatives for fossil fuels, such as bio-fuels. Finding non-edible oils,
particularly from tree crops, which could relate more closely to the price of
crude, is essential and having extensively researched the subject.

   I am satisfied that Pongamia pinnata is not only the most viable and
sustainable species, but it is also the one with the greatest potential and
most environmentally sound characteristics. In particular, being a legume, it
can contribute significant amounts of nitrogen to the soils on an ongoing
basis reducing the fertilizer ongoing costs. Not only that, the seedcake
remaining after the pressing process can be used as cattle feed, or as an
organic fertilizer for crops.

    The thick yellow-orange to brown oil which can be extracted from the
seeds can be used for biodiesel. Yields of 25% of volume are possible using a
mechanical expeller. However, crushers yield an average of 20%. The oil has
a bitter taste and a disagreeable aroma, thus it is not considered edible. In
India the oil is used as a fuel for cooking and lamps. It can also be used as a
lubricant, water-paint binder, or as a pesticide, and it is used in soap making
and tanning industries. The oil is also known to have value in medicine for
the treatment of rheumatism and it can be used as well as a treatment for
human and animal skin diseases. It is effective in enhancing the
pigmentation of skin affected by leucoderma or scabies.



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for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 25                                                     09/09/2011


Fodder and feed.

     Opinions vary on the usefulness of Pongamia as fodder. Troup (GOI
1983) reports that the leaves can be eaten by cattle and are readily
consumed by goats. However, in many areas of India where Pongamia is
grown, the leaves are not commonly eaten by farm animals. Its fodder value
is greatest in arid regions. According to Singh (1982) the leaves contain 43%
dry matter, 18% crude protein, 62% neutral detergent fiber, 40% acid
detergent fiber, and in vitro dry matter digestibility of 50%. The presscake,
remaining when oil is extracted from the seeds can best be used as poultry
feed, but when it is applied to the soil, it has pesticidal value, particularly
against nematodes.

     Other uses include the incorporation of leaves and the presscake into
soils to improve fertility. Dried leaves can also be used as an insect repellent
in grain stores and string and rope can be made from the bark fiber.

   In the Far East and India, Pongam is often planted in homesteads as a
shade or ornamental tree, and it is used in Brisbane Australia in avenue
plantings along roadsides and canals. When planted as a shade or
ornamental tree, branch pruning may be necessary to obtain a trunk of
appropriate height. It is a preferred species for controlling soil erosion and
binding sand dunes because of its dense network of lateral roots.

Its root, bark, leaf, sap, and flower also have medicinal properties.

Silviculture
    Pongam is best established by seeds being raised in nursery to become
seedlings which can be transplanted. Propagation by branch cuttings and root
suckers is also possible, but not recommended. In peninsular India, the
seeding season is April to June, and the seed yield per tree ranges from
about 10 kg to more than 50 kg. There are 1500-1700 seeds per kg. Seeds,
which require no treatment before sowing, remain viable for about a year
when stored in air-tight containers. The seed germinates within two weeks of
sowing and the seedlings attain a height of 25-30 cm in their first growing
season.

   Transplanting to the field should occur at the beginning of the next rainy
season when the seedlings are 60 cm in height (GOI 1983).

   Seedlings have large root systems so the soil should be retained around
the roots during transplanting. Seedling survival and growth benefit from
annual weed control for the first three years after transplanting.

   The spacing suggested in shelterbelt enclosure plantings is about 8 m
between plants, although in block plantings, the spacing can range from 2m
x 2m to 5m x 5 m.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 26                                                     09/09/2011


    Pongam seedlings withstand shade very well and can be interplanted
within an existing tree stand. This species can be regenerated by coppice
management and because it tolerates moderate levels of salinity, Pongam is
an ideal candidate for saline soil reclamation.

    The extraordinary diversity of plants, wildlife, and habitats is partly
driven by an environment that is quite variable across the Texas landscape.
But vegetation in Texas must be exceptionally resilient to survive extreme
heat and low rainfall, and yet be able to make a noticeable comeback, even
after experiencing years of severe drought. Across the region, the annual
rainfall averages 24.5 inches, but fluctuations can be dramatic. Between the
years 1900 and 1983, the driest year was 1917, when the regional rainfall
average was 9.5 inches.

   The wettest year was only 2 years later in 1919, however, when the
regional average was 40.8 inches. Overall, 36% were drought years and 34%
were wet years.

    The Texas‘ climate is subtropical sub-humid-to-semi-arid, with high
temperatures, high evapotranspiration rates, but very few killing frosts. The
average annual air temperature in Texas exceeds 70°F, which is comparable
to southern Florida. July temperatures commonly exceed 98°F, and these
extremely warm temperatures have a profound impact on the ecology of
plants and animals. Pongamia is noted for its shade potential, and it can play
a keystone role in the region‘s ecology by moderating the thermal
environment beneath their canopies. This, in turn, will provide protective
cover for many plant and animal species in the region.

    Trees alter the environment in which we live by moderating climate,
improving air quality, conserving water, and harbouring wildlife. Climate
control is obtained by planting Pongamia which, when fully grown, will
moderate the effects of sun, wind, and rain. Radiant energy from the sun will
be absorbed, or deflected, by the leaves in the summer, and is filtered by the
branches of this deciduous tree in winter. The air is cooler in the shade of
trees, and the ground is not exposed to direct sunlight.

    Vegetation cover is an important factor to keep ecosystem in normal
condition. Normal vegetation cover can protect soil, moisture, and animals
effectively.

    However, when vegetation cover is under pressure, and degradation is
already taking place, the loss of soil, moisture and animal populations is only
a matter of time. A degraded ecosystem quickly loses its many microhabitats
and their inhabitants, but regeneration of vegetation within a pongamia
shelterbelt enclosure is comparatively easy, and once regenerated, new
vegetation helps in the propagation of both the plants and animals alike.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
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contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 27                                                     09/09/2011


     Wind speed and direction can be affected by trees, and the more
compact the foliage on an individual tree, or group of trees, the greater the
influence of the windbreak. The downward fall of rain, sleet, and hail is
initially absorbed, or deflected by the trees, which nevertheless do provide
some protection for native plants.

    As has already been shown, trees intercept water and store some of it
deep underground; this reduces storm runoff and the possibility of flooding.
Dew and frost are less common under trees, because less radiant energy is
released from the soil in those areas at night.

   The temperature in the vicinity of a Pongamia tree is noticeably cooler
than that away from the tree, so, the larger the Pongamia shelter belt is, the
greater the cooling effect. By using Pongamia we will be able to moderate the
heat-island effect caused by the dry earth.

    Air quality can be improved through the use of trees, shrubs, and turf.
Leaves filter the air by removing dust and other particulates. Rain then
washes the pollutants to the ground. The leaves absorb carbon dioxide from
the air to form carbohydrates that are used later in the plant‘s structure and
function. In this process, leaves also absorb other air pollutants, such as
ozone, carbon monoxide, and sulfur dioxide—and give off oxygen.

    Pongamia is a legume tree that grows to about 15–25 meters (15–80 ft)
in height with a large canopy which spreads equally wide. It may be
deciduous for short periods. The leaves are a soft, shiny burgundy in early
summer and mature to a glossy, deep green as the season progresses.

   Flowering starts in general after 3–4 years. Cropping of pods and single
almond sized seeds can occur by year 2. Small clusters of white, purple, and
pink flowers blossom on their branches throughout the year, maturing into
brown seed pods.

    Naturally distributed in tropical and temperate Asia, from India to Japan
to Thailand to Malaysia to north and north-eastern Australia to some Pacific
islands it has been propagated and distributed further around the world in
humid and subtropical environments from sea-level to 1200m, although in
the Himalayan foothills it is not found above 600m.

     Withstanding temperatures slightly below 0 °C (32 °F) and up to about 50
°C (120 °F) and annual rainfall of 500–2,500 mm (20–100 in), the tree
grows wild on sandy and rocky soils, including politic limestone, and will grow
in most soil types, even with its roots in salt water. The Pongamia tree is well
suited to intense heat and sunlight and its dense network of lateral roots and
its thick, long 10m (32.5 FEET) tap root not only make it drought-tolerant, it
also creates a reservoir deep underground because its deep roots allow most
of the water to percolate into the soil, which then spreads like water through
a sponge during periods of dry weather.
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for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 28                                                     09/09/2011


   The dense shade Pongamia provides, slows the evaporation of surface
water, and its root nodules promote nitrogen fixation, a symbiotic process by
which gaseous nitrogen (N2) from the air is converted into ammonium
(NH4+, a form of nitrogen available to the plant).

    By planting shelterbelts of Pongamia trees and shrubs, we will, in time,
return the land to a more natural, less artificial environment. Birds and other
wildlife will be attracted to the area, and the natural cycles of plant growth,
reproduction, and decomposition will once again be present, both above and
below ground. Natural harmony will be restored to the urban environment.

    Shelterbelt enclosures of Pongamia can help to implement habitat
conservation plans by controlling exotics and creating and enhancing the
habitat. Shelterbelts of Pongamia will create habitat ―islands‖, which will
allow for the planting of native grasses and forbs that should support
butterfly populations. These ‗islands‘ should be constructed in strategic
locations in habitat restoration areas to help native grasses expand into
these new areas. These islands will need stewarding for several years to help
them establish, and resist invasive plants, until the habitat is self-sustaining.

    Detailed monitoring of the process will need to be carried out so that we
can continue to enhance the establishment of the shelterbelt pongamia island
system over the years. In addition to habitat creation, Pongamia shelterbelts
will also assist with invasive plant removal.

     Selection of the planting site.

    Where to plant is generally best as a collective decision made by policy
makers, farmers, land owners, and the planting crews, based on information
obtained in the site reconnaissance. The key is to select a site that, when
planted, will lead to the establishment of a successful pongamia plantation.
Often, the choice of the planting site will be limited to land which is no longer
suitable for agriculture or livestock production; if this is the case, the site
reconnaissance information gains importance.

   The boundaries of the planting site, once the area has been chosen,
should be marked with posts and when there is a danger of trespassing
and/or damage by grazing animals, a boundary fence should be established.
But fencing is costly and, therefore, should only be built when other means of
protection are not effective. But once a pongamia plantation enclosure is well
established, and the trees are sufficiently tall, the fences can be removed
and reused at another planting site.

    When roads and other passageways traverse the planting site, they
should also be contained with fences. In many instances, Pongamia tree and
shrub planting can be undertaken to protect fragile sites from degradation.


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for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 29                                                     09/09/2011


    However, in some situations, the fragile sites should not be planted; it
may be better not to disturb the soil in these areas. Where gullies have been
severely degraded by erosion, protective measures, other than the planting
of vegetation, (such as building small check dams), may be necessary.

     Species selection – only when the best possible information has been
collected on the characteristics of the site to be planted, the next step is the
selection of the seeds for Pongamia plus any shrub species to plant. The aim
is to choose species which are suited to the site, will remain healthy
throughout the anticipated rotation, will produce acceptable growth and
yield, and will meet the objectives of the plantation.

     For a successful planting, performance data may have to be extrapolated
from one locality to another. Results from a single locality where a tree or
shrub species is growing, (either naturally or as an exotic), apply only to that
locality; its performance application in another locality involves the
assumption of site comparability, an assumption which may or may not be
justified. When reliable information shows a close similarity between the site
to be planted, and that on which the species is already successful, it is
generally possible to proceed to large-scale planting with confidence.

    In practice, the data is seldom available, and planting on the new site
becomes, (in effect), experimental and we should proceed on a small
experimental scale.

   When this occurs, detailed performance records need to be maintained
throughout the experimental planting period.

    The selection of a tree or shrub species through the use of analogous
climates is as important as the first step; but this must be amplified by an
evaluation of localized factors which can be more important, (for example,
soil, slope, and biotic factors). However, the ability to match closely a
planting site and a natural habitat may not preclude the need for species
trials, since climatological or ecological matching may not reveal the
adaptability of a species.

    It cannot be emphasized too strongly that, without such trials, the choice
of tree or shrub species is, (in most cases), a risky business. Since planting
in arid environments is normally an expensive undertaking, large-scale
failures which result from the wrong choice of species, or the failure to test
them, can prove costly.

      Preparation of the site

   When the trees, or the seedlings, arrive from the nursery, the site should
have been prepared to ensure that planting can proceed without delay.


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for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 30                                                     09/09/2011


   Arid zone conditions frequently demand more intensive and thorough site
preparation than is necessary for planting programmes in moist climates.

      Objectives of site preparation

     Among the objectives of site preparation in arid zones are to:

1.     Remove competing vegetation from the site.
2.     Create conditions that will enable the soil to catch and absorb as much
rainfall as possible.
3.     Surface runoff should be reduced to increase the moisture in the soil.
4.     Provide good rooting conditions for the planting, including a sufficient
volume of rootable soil.
5.     Hardpans must be eliminated.
6.     Create conditions where danger from fire and pests is minimized.

   Site preparation should be directed toward giving the seedlings a good
start with rapid early growth. In general, the methods used to achieve site
preparation will vary with the type of vegetation, amount and distribution of
rainfall, presence or absence of impermeable layers in the soil, the need for
protection from desiccating winds, and scale of the planting operations.
Additionally, the value of the tree or shrub crop to be grown is important in
determining the amount of expense that may be justified in shelterbelt
establishment.

   Methods of site preparation - in general, preparation of the site by hand is
possible, but only economical for relatively small-scale projects where the
labor of clearing the competing vegetation and working the soil is not too
time-consuming. Under certain conditions, animal-drawn ploughs and
harrows can also be economical for small-scale operations.

    Mechanical soil preparation, used increasingly in large-scale planting
programmes, has become a common practice in many areas; often, because
the supply of labor and the time available for ground preparation are too
limited to permit large-scale projects to be undertaken by hand.

  Some operations, such as deep sub soiling and the breaking up of
hardpans can only be done by machines.

   Whatever method of site preparation is used, a planting pit, (of an
appropriate size), should be prepared. The objective of creating planting pits
is to aerate and loosen the soil in which the plants will grow. When these
planting pits are prepared, they should not be left empty with the excavated
soil lying on the ground, but refilled immediately; otherwise sun and wind will
dry out the soil completely.

     Planting holes - 0.4m x 0.4m x 0.4m at a spacing of 5m x 5m.

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for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 31                                                     09/09/2011


    Sometimes, spot preparation may be sufficient, but the spots should be
large (for example, 1 to 1.5 meters in diameter). It is important that the
work be done thoroughly.

    Other methods of soil preparation by hand are the ash-bed method, tie-
ridging, contour trenching and terracing, and the ―steppe‖ method.

    The ash-bed technique consists of piling the debris from harvesting or
clearing the land into long lines or stacks. After drying, the debris is burned
and vegetation is planted in the ash patches. Sometimes, the lines or stacks
of debris are covered with ―clods‖ to obtain a more intense heat when
burning. Advantages of this method are that the burning kills the competing
vegetation, the area remains free of this vegetation for an appreciable
period, and the ash provides a useful fertilizer for the planted trees or
shrubs.

   The tie-ridging technique involves the cultivation of the entire area and
the establishment of ridges at specified intervals.

    The main ridges, aligned along the contours, are joined by smaller ridges
at right-angles to create a series of more-or-less square basins which retain
rainwater and prevent erosion. The ridges are generally 3 meters apart. The
trees and shrubs are planted on the ridges. This method is suitable for flat or
gently sloping ground and can be combined with an agricultural crop during
the initial years of plantation establishment.

    Trenching techniques along the contours can be used in site preparation
in hilly country. The trenches can be continuous, divided by cross banks, or
consist of short discontinuous lengths, arranged so that the gaps between
the trenches in one row are opposite those in the next row; in this latter
instance, runoff from rainfall is caught. Trenches are formed manually or
mechanically. On gently sloping ground, the herring-bone technique can be
used.

    Terraces, which are wider and flatter than trenches, can be either
manually or mechanically formed on the side of a hill by digging soil from the
uphill side and depositing it on the downhill side. Usually, the bottom of the
terrace is made to slope into the hillside.

    The purpose of terracing is to retard and collect water runoff between the
terraces. Because of the improved soil moisture conditions, the terrace
provides improved conditions for plant growth. Planting is done on the ridge
of soil, at the base of the ridge, or in patches at the bottom of the trench,
according to moisture conditions. Terraces are used widely on moderate to
severe slopes. Terraces can be 2 to 3 meters or several hundred meters in
length. If short, they can be staggered on the hillside wherever convenient.
Sometimes, crescent-shaped terraces are constructed with the two tips of
the crescent pointing uphill.
  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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Author John M Jeapes         Confidential         Page 32                                                     09/09/2011


     The ―steppe" method of site preparation, is designed to promote the
growth of trees and shrubs in extremely dry areas. The surface of the soil is
modified by breaking-up and stirring the deep layers of the soil with rooters,
rippers, or large discs, and then building widely-spaced, parallel ridges
following the contour. Ridges are built with the topsoil, and trees or shrubs
are planted on the lower half of the ridges facing the slope; here, the depth
of moist soil is greatest, due to accumulation of water after rain. The purpose
of the ―steppe‖ method is to maintain a reserve of moisture in the deep
layers of the soil. Spacing between ridges is greater with lower rainfall, as
the catchment area between the ridges is increased.

     Time of planting - the planting season generally coincides with the rainy
season; usually, planting is started as soon as a specified quantity of rain has
fallen. This amount of precipitation must be judged on the basis of local
knowledge. Planting can also be initiated when the soil is wet to a specified
depth (approximately 20 centimeters).

     A common mistake is to start planting too soon. On the other hand, if
planting is started too late, it may be difficult to complete a large planting
programme in the scheduled time, and the plants will lose the maximum
benefit of rains after planting; this can be a serious matter where the rainfall
is low and erratic.

    The planting of the containerized stock is usually done in holes that are
large enough to take the containers, (or the root-balls when the plants are
removed from the containers). It is essential that the surrounding soil is
firmed down around the plant immediately after planting to avoid the
formation of air gaps which can lead to root desiccation.

   A good practice for the preparation of planting holes is to surround the
planting pit with a small ridge (15 to 20 centimeters in height) of soil, to
obtain a small basin (about 80 centimeters in diameter); this is especially
helpful when the plants are watered individually after planting. The small
prepared basin can also be covered with a plastic sheet (held in place on the
ground with stones or earth), with an opening in the center for the plant.

   The plastic sheet impedes evaporation of ground water from the planting
hole; also, dew collects on its surface and runs to the central opening of the
sheet to irrigate the roots.

     Through conservation of soil moisture, plastic films facilitate more rapid
establishment and growth of trees and shrubs during the initial and most
critical years. Another benefit of opaque plastic films is that they inhibit weed
growth by reducing light penetration. With the suppression of weeds in the
immediate vicinity of the plants, labour also can be saved.



  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
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contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 33                                                     09/09/2011


    A threat to newly-planted trees in arid zones is the high rate of
transpiration. Unless the plants can establish themselves quickly and
compensate for the transpiration by taking water through their root systems,
they will wilt soon after planting. This explains why even a single watering
immediately after planting can be useful. In general, containerized seedlings
have a distinct advantage over bare rooted seedlings, in that the earth ball
surrounding the roots provides protection during transport and enables the
plant to establish itself quickly and easily.

    The restriction of lateral root extension, a result of using containers, can
cause root malformation, coiling, and spiraling. In extreme cases, the coiling
can lead to strangulation of the roots and the death of the plant. In other
situations, it may reduce wind-firmness or lead to stunted growth.
Unfortunately, the symptoms may not become apparent until 4 to 5 years
after planting.

   To reduce the damage of root malformation in containerized plants, a
common practice is to remove the container from the soil cylinder before
planting and make two or three vertical incisions to a depth of one
centimeter with a knife to cut ―strangler‖ roots. As a further precaution, the
bottom 0.5 to 1 centimeter of the soil cylinder can be sliced off. Care must be
used to ensure that the soil does not disintegrate and expose the roots to
desiccation.

    By observing trees and shrubs growing under natural conditions, it is
often found that plants grow widely apart in low rainfall areas. Therefore,
wide spacing of plantings in arid zones generally should be practiced to avoid
competition for soil moisture.

    The amount of water available to a tree or shrub in a shelterbelt is
proportional to the stand density.

    On dry sites, it may be necessary to plant widely apart and to remove all
competing ground vegetation; this increases infiltration of rainwater and
decreases water losses through transpiration by plants and evaporation from
the soil. When irrigation or mechanical cultivation is practiced, it is necessary
to adjust spacing to the width of the machinery used and to ensure that
plants are placed in straight rows.

     Actual spacing varies with species, site, and the purpose of the forest
plantation. In fuel wood plantations, for example, one might prefer closer
spacing than employed in other kinds of plantations. Seldom can a spacing of
less than 3 x 3 meters be applied, however.

     The number of trees per hectare, according to the spacing between the
lines in a plantation and the spacing of plants within a line, is given in
Annexure.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 34                                                     09/09/2011


   For example, with a spacing between lines of 3 meters and a spacing of
plants within a line of 3 meters, a planting density of 1311 trees per acre will
be required.

    Some of the other applications that help in planting and can be resorted
to help the regeneration process are discussed briefly as following:

   Mulching can be accomplished before or after seeding and is important for
preventing water erosion, reducing wind erosion, reducing soil crusting,
decreasing rainfall impact, insulating the soil surface, and decreasing
evaporation.

    Mulching will be most critical on slopes where erosional concerns require
temporary stabilization prior to establishment of seeded or planted
vegetation. Mulching materials include straw, native grass, erosion control
fabric, and others. Application of straw or grass mulch should be performed
in low wind conditions to allow for uniform application.

    Noxious weeds are non-native weeds that invade an area of vegetation,
and then compete with the native species, sometimes replacing valuable
native vegetation with useless weedy vegetation.

   Generally, wildlife do not eat noxious weeds, so they are forced to leave
invaded areas in search of food. In addition, livestock do not generally eat
noxious weeds that invade rangelands.

    Erosion is often times more severe in areas infested with noxious weeds
due to decreased cover. Because of these serious impacts, reclamation
activities should take rigorous precautions against the infestation of noxious
weeds.

   Prevention of noxious weed invasion at each site will require integrative
management of many different factors including, preexisting weedy
vegetation, proximity of weed seed source, density of vegetation established
during reclamation, grazing practices following reclamation, competition
between other species present, herbicide control programs, biological
controls indigenous to the site, and other factors.

     • Lime Application: In order to incorporate lime amendments for soil
acidity neutralization, application is accomplished prior to soil tillage. Not all
soils will be acidic therefore, lime addition will only be necessary on a site by
site basis. In the event that lime amendments are necessary, superficial
application may be accomplished by a variety of equipment.

   Independent of the choice of application equipment, amendments should
be spread uniformly on the soil and carried out in patches, strips, or by
complete cultivation.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 35                                                     09/09/2011


    Careful cultivation is necessary for tree and shrub species which are
intolerant of competition from grass, forte, and woody growth (such as most
eucalyptus species).

    As a result of the adoption of aforementioned measures, a vast expanse
of degraded land can be separated and encircled by green ecological
Pongamia shelterbelt enclosures.

    Land degradation is a complex process caused by human impacts and
natural factors. For a sustainable development in regions affected by the
process, prevention and remedy of land degradation is an arduous task which
should and must be accomplished, and it can be accomplished since the
effect of using shelterbelts is a well known afforestation process.

1.     Select appropriate tree species to grow within the Pongamia
shelterbelt enclosures, and grass species for afforestation. Allocate tree
species properly. Native tree and grass species with high adaptability such
as, sugar hackberry and huisache should be considered as should other
trees, which rise to dominant status depending on location, include eastern
cottonwood, post oak, live oak, cedar elm, anaqua, honey mesquite, pecan,
black hickory, shagbark hickory, Texas persimmon, Texas ebony, mustang
grape, and muscadine grape.

2.   An essential guarantee to accelerate vegetation rehabilitation to
combat land degradation is to integrate combating land degradation with
management to practice tree preservation.

3.    After enclosure and afforestation, vegetation coverage is expected to
increase from less than 10 percent to more than 50-60 percent.

Millettia Pinnata = Pongamia Pinnata

     Pongamia, unlike Jathropha, has no known Carcinogenic effects.

  The Seeds: Pongamia seeds are the source of the oil, and for many the
most important part of the plant. The seed in shell contains between 30-
40% oil but this is quite variable, and is one of the selection factors to be
employed in choosing elite plants.

   The Shell: The shell is a waste product, however when burnt, it has
similar energy to brown coal, so it can be used in either in a gasifier, or
simply thrown back onto the soil as a fertilizer.

    The Meal: is what is left of the seed after the oil has been extracted using
a conventional screw press and constitutes approximately 60% of the seed
by weight. This can be put through a steeping process to remove the
remaining oil with its unpalatable alkaloids, and fed as a protein meal at up
to 37% of the ration for cattle.
  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 36                                                     09/09/2011


    To avoid the need for steeping, solvent extraction of the oil will also
produce a feed of the same quality. However, for a small scale operation,
solvent extraction would not be practical.

    If steeping or solvent extraction is not used, it is still safe to feed the
crushed meal at a rate of up to 10%. Seed in shell can be used whole as a
boiler fuel (replacement for coal or other solid fuels).

Will it work? One thing is certain . . . .if you don’t try It, You’ll never know!

     What will it cost?

   The cost of cultivation depends upon labour availability, but figures
suggest around US$ 550 -1200 per hectare

The cost maintenance of Pongamia Shelterbelts is expected to be about US$
100-200 per year per hectare

The cost of oil extraction from year four onwards roughly comes to about US
$ 0, 12 / kg

The cost of Bio Diesel is largely dependent on the choice of feedstock and the
size of the production facility but the fuel produced after year four will cost
approximately US$ 0, 40 per litter plus tax when applicable.

Annex 1 Biofuels

     Unit Cost

    The cost of cultivation of Pongamia pinnata in one hectare at an
espacement of 5m x 5m per ha has been worked out at between US$ 550 to
1200 per ha (unirrigated condition). The details of various items of
expenditure are viz., land preparation, digging of pits, plant and material,
manure and fertilizer, interculture, watering & plant protection, etc.

The cost break down of Pongamia shelterbelts, per hectare, is as follows:


ESPACEMENT:                                                   5M x 5M
CASUALTY REPLACEMENT:                                         20%
NO.OF TREES/HECTARE:                                          441
SURVIVAL/HA:                                                  400
 Site preparation per hectare:                                10 Man Days
 Initial ploughing:                                            6 hrs.
 Alignment & staking:                                          5 Man Days
 Digging of pits:                                             13 Man Days
 Refilling of pits after mixing:                               3 Man Days
  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 37                                                     09/09/2011
FYM, Fertilizer & insecticides:                               50 pits/Man Day
Cost of FYM @ 2 Kg/pit                                        unknown
Cost of fertilizer @150 gm./plant                             unknown
Cost of plants including transport                            $US3/plant
Planting and replanting                                       100 plants per Man per day = 5 Man
Days/ha
Weeding, soil working, application of                        fertilizer, etc. (3,2,1,1) 10 Man Days
Plant protection measures

Yield and income per hectare

Mature Pongamia Shelterbelt Plantations of one hectare should produce 3-5
tons of seeds which can bring an income of US$800-1400 per hectare per
year for the individual farmer. Especially when planted where no other crop
can grow without substantial inputs and reclamation. Therefore growing the
hardy pongamia as a Shelterbelt enclosure appears to be a viable option for
Texas.

The financial BENEFITS of growing Pongamia for Biodiesel

    Pongamia is seen by many to be the perfect crop. It can be grown in very
poor soils, actually generating top soil as it goes, it is drought and pest
resilient, and it has seeds with up to 40% oil content.
Here are some facts and figures about Pongamia relating to its growth as an
oil product:
- Pongamia grows well on low fertility soils; however increased yields can be
obtained using a fertilizer containing small amounts of magnesium, sulphur,
and calcium.
- Pongamia can be intercropped with many other cash crops such as coffee,
sugar, fruits and vegetables with the Pongamia offering both the fertilizer
and protection against livestock.
- Pongamia needs at least 600mm of rain annually to thrive, however it can
survive three years of drought by dropping its leaves.
- Pongamia is excellent at preventing soil erosion, and the leaves it drops act
as a wonderful soil enriching mulch.
- Pongamia prefers alkaline soils.
- The cost of growing 500 pongamia saplings (enough for one hectare with
replacements is $US3 each.
- The cost of 1kg of pongamia seeds from India is 6 Rupees (equiv to around
£0.07).
- Each pongamia seed should be given a 3m x 3m area to grow into
seedlings.
- 20% of seedlings, when transplanted, will not survive.
- Pongamia seedlings yield seeds in their second year i.e. one year after
planting, which are best used to grow more trees.
- After the first five years, the typical annual yield of a pongamia tree is
3.5kg of beans.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 38                                                     09/09/2011
- Pongamia trees are productive for up to 30-40 years.
- 500 trees can be planted per hectare (approx 1,250 per acre).
- 1 hectare should yield around 7 tonnes of seeds per year.
- The oil pressed from 4kg of seeds is needed to make 1 liter of biodiesel.
- 91%+ of the oil can be extracted with cold pressing.
- 1 hectare should yield around 2.2-2.7 tonnes of oil.
- Press cake (seedcake) left after the oil is pressed from the seeds can be
composted and used as a high grade nitrogen rich organic fertilizer (green
manure). The remaining oil can be used to make skin friendly soap.
- One job is created for each 4 hectares of pongamia plantation.
- Biodiesel costs around 16-20c per liter to grow and refine.
- Glycerol, a bi-product of biodiesel refinement, can be sold for around 45-
70c per kilogram.
- One hectare of pongamia plantation should yield a profit of 450$US at year
five $US1012.50 by year ten.

     The following stats come from D1 Oils - the UK's biggest biodiesel
company:
- Crushing 1 tonne of Pongamia seeds costs around $40 (£23).
- 1 tonne of seedcake (the leftovers after pressing) can be sold for $100
(£55).
- The transport costs of shipping 1 tonne of pongamia from India to Northern
Europe is about $100 (£55).
- The landed cost of 1 tonne of pongamia oil to Northern Europe is between
$348 and $500 for oil contents of 29% to 40% (£180 to £260).- Refining
pongamia oil into biodiesel costs less than $125 (£65) per tonne.
- Filtered pongamia oil can be used as is in many diesel vehicles (as SVO)
with only small modifications required to the engine.
- Pongamia oil can be used as a kerosene substitute for heating and lamps.
- Pongamia oil burns with a clear smokeless flame.

About Abundant Biofuels Corporation.

Management Team

Our management team was responsible for planning, funding, and
establishment of jatropha farming and biodiesel operations in West Africa.
Abundant Biofuels‘ management team is refocusing its efforts to profitably
develop the rest of the world, beginning with the Western Hemisphere.

The team‘s proven profitable approach will bring sustainable economic
development to the target regions, paying a living wage to some of the
poorest people in the world.

Recognizing the differences among the target countries, we created a new
entity Abundant Biofuels to adapt our business strategies to the particular
circumstances in each of the various target countries.


  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 39                                                     09/09/2011
     Abundant Biofuels principals have many years of corporate experience
from startups to Fortune 500 companies. Perhaps most important is their
bias for action. This project is not a lab experiment, it‘s a dynamic
environment that requires fast, well-devised execution of plans and changes
to them, and this team is more than up to the task.

DR. CHARLES FISHEL, (Chairman and CEO) - Founding CEO and Director of
Gold Star Biodiesel with a 40-year career in senior management, finance and
legal roles in domestic and international entrepreneurship as well as
multinational industrial ventures.

JAMES LOVE, (President and COO) - Founding Vice President of Gold Star
Financial LLC with more than 30 years of managing companies through all
phases of development including concept, development, commercial growth,
and maturity (United States and internationally). He was vice president of
the U.S. Company that pioneered and developed jojoba.

ABDEL SECK, (Vice President) - Mr. Seck joined Abundant Biofuels
Corporation to open the Company‘s African Headquarters in Dakar, Senegal.
Mr. Seck was born in Senegal and has spent the last 19 years in the United
States. He brings with him an extensive international business experience.

DON HARCUM, CPA, (Controller) - More than 30 years of management
experience with CPA credentials, a degree in agronomy, and experience in
forensic accounting.

GARY L. TOMS, (Chief Administrative Officer) - Mr. Toms has over 30 years
of experience in Risk and Insurance Management. He established the Risk
Management Departments at the ―Fortune 500‖ companies of Intel
Corporation, Amdahl Corporation and Anthem Insurance Companies, Inc.
These departments have grown to be contributing business partners to the
overall success and profitability of these organizations.

RENE LACSINA, PHD, (Vice President – Farming; President – Abundant
Biofuels Philippines Inc.) is a results-oriented international agricultural
development specialist with demonstrated expertise in sustainable agriculture
in tropical, subtropical, temperate and arid land production systems. He is a
Certified Professional Agronomist (CPA), and a member of the American
Registry of Certified Professionals in Agronomy, Crops and Soils.

KEVIN C. SMITH, (Vice President – Latin America) – More than 30 years of
experience in the energy and environmental sector involving project
development and financing. Since 1992, Kevin has worked in Latin America
for several companies and public agencies where he managed development
of cogeneration and renewable projects in Mexico, Colombia, Brazil, and
Peru. Primary efforts have been in the areas of natural gas and biomass
cogeneration, methane recovery from landfills, ethanol and biodiesel fuels
and wind energy projects.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 40                                                     09/09/2011


HANS EDSINGER, (Vice President — Europe) has been interested in the
production of biodiesel from Jatropha with special focus on Africa for
production and European markets for off-take of neat oil or biodiesel. His
business ventures provided him with experience in international trading and
finance, production in emerging economies, global supply chain solutions and
international brand building.

TONY SETHI, (Vice President — Refining) joined Abundant Biofuels from
Menlo Energy and Green Line Industries where he was president and chief
operating officer responsible for development, manufacturing, installation,
and support of next generation modular biodiesel production plants
worldwide. He has over 20 years of demonstrated leadership and general
management acumen in the energy, chemicals, pharmaceuticals, and
cleantech technology sectors. He has extensive application knowledge in
manufacturing processes and he earned his MS (Control Systems) from
Marquette University and his BSEE Electrical Engineering from Delhi
University, India.

MASHRUK ZAHID, (Strategic Analyst) has been driving growth-oriented
strategies for industrial and retail businesses. He earned an MBA from the
University of Chicago and a BA from College of Wooster.

NADIR MINHAS, (Business Development) graduated from San Jose State
University in May 2008 with a Bachelors of Science degree in Finance. He
joined ABC in September of the same year and has been groomed by his
more senior colleagues to be responsible for Business Development.

JACOB DELINE, (Oil Sales) graduated from San Jose State University in
December 2008 with a BS in Business Administration. He has done marketing
and business development work for Indo Pacific Polymers and is working on
different alternative energy projects in Australia, Peru, and the Philippines.

John Jeapes
Harvestgld@aol.com
Tel 33 549 633 952

Press Release
02 May 2011 15:22:15 -0400 EDT
BARBADOS and MONTEREY, Calif., May 2, 2011
BioJet International Ltd. and Abundant Biofuels Corporation announced their merger today.
Abundant will become a wholly owned subsidiary of BioJet. Abundant and its affiliates
(Abundant Habitats and Abundant Harvests) will continue to operate under the Abundant name
and corporate identity. BioJet is a leading international supply chain integrator in renewable (bio)
jet fuel and related co-products which include green diesel, etc. for the aviation and transportation
sectors. Information: www.biojetcorp.com Abundant is an integrated renewable energy company
and a world leader in feedstock development. Abundant controls more than four million hectares
in ten countries in Asia, Latin America, and Africa.

  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed
Author John M Jeapes         Confidential         Page 41                                                     09/09/2011


It has sufficient nursery seed stock to develop Jatropha plantations over the next three years
capable of producing more than 20 million barrels of green biofuel. The company is well known
for its Philippine Jatropha project, one of the largest projects of this type in the world.
Information: www.abundantbiofuels.com

BioJet Chairman Mitch Hawkins said: “The Abundant deal is a major step toward BioJet
attaining its goal of becoming the world’s largest owner and developer of feedstock for renewable
jet fuel and green diesel. Ownership and control of feedstock is the absolute key to all biofuels.
The strategic additional bandwidth brought by the team and assets of Abundant form a major
building block in the expansion of our Camelina, Jatropha, Algae and Biomass projects in Latin
America, Asia, Europe, and Africa.

This deal also fits in nicely with our plans for the recent US$1.2 Billion funding commitment we
received from Equity Partners Fund.” Information: www.equitypartnersfund.com

BioJet operations throughout the entire biofuel value chain engage feedstock generation,
technology, refining, logistics, sustainability certification, distribution, and eventual end use by
the aviation and transportation sector user.

BioJet is the first Alternative Fuels Strategic Partner of the International Air Transport
Association. Abundant Group Chairman Charles Fishel said: “The International Energy Agency
projects that, by 2050, demand will reach $11-plus Trillion. Consolidation of our companies
creates the first fully integrated global biofuel company capable of addressing that challenge.”
Fishel added that “Competitors either focus solely on refining or, alternatively only on production
of feedstock. BioJet will be one of the only (if not the only) international biofuels company that
can control all of its feedstock. This provides BioJet with the ability to control its internal
allocation of resources for a significant cost control advantage while other companies are subject
to severe fluctuations in cost and availability of feedstock.”




  This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided
for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this
document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to
reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its
contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates
only and cannot be guaranteed

								
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