UTILIZATION OF LOW NOx COAL COMBUSTION BY-PRODUCTS

The project has switched focus this quarter from pilot plant operations to product testing. Last quarter extensive pilot plant work had occurred and testing objectives had been met. Also last quarter technology demonstrations were also performed for Potomac Electric Power, Virginia Power, and Wisconsin Electric. We had reported that groundbreaking for the PEPCo fly ash treatment facility was to begin in August. Recent conversations with the technology's licensee, Mineral Resource Technology, have resulted in changes. Long term contract negotiations between MRT and Potomac Electric Power have caused delays. Most recent estimates are that contract negotiations should be finished in August, detailed engineering is to begin in September, and groundbreaking to begin in early Spring. The commercialization of the technology is going forward, just not as fast as we or MRT had anticipated. As this is being written we have received inquiries from Plastics Technology Magazine about fly ash utilization in plastics. We are anticipating working with one of their editors to provide an upcoming article