K R A U S E   C H E M I C A L   L T D .
                     ---------------------------------------









                                                February 4,2002

Mr. Bernard McDougall
Micron Enviro Systems, Inc.
Suite 990
1500 West Georgia Street
Vancouver, B.C.
V6G 2Z6

Subject:        Green Ranch Gas Project -- Stephens County, Texas.
                --------------------------------------------------

Dear Bernard:

     As per your conversations with Burroughs Engineering, we hereby define your
participation  terms in the completion of the Green Ranch Gas Project,  Stephens
                                              ----------------------------------
County, Texas to the following:
-------------

     Micron Enviro Systems,  Inc.  ("Micron");  will participate in the drilling
and  development  of  the  above-noted   project  by  paying  its  proportionate
percentage of the Project as follows:


     1)   Its proportionate share of the Land,  Seismic,  and Geology cost which
          consist of - for the 100% interest - $45,548 for the initial well, and
          $102,483 for the subsequent four wells.

     2)   Its proportionate  share of the balance of the drilling and completion
          costs as  represented  by the estimates of the  Burroughs  Engineering
          Group.

     3)   On all subsequent wells and facilities, after the initial five, Micron
          shall participate by paying its proportionate share of their costs.

     It is agreed  between the  parties  hereto  that  should the  drilling  and
completion  on costs  exceed  the AFE  estimates,  each party will bear only his
proportionate  share of the  excess  costs.  Should  any party  choose to forego
further  participation  after the initial well, it shall be responsible for land
and leasehold costs only as to the wells in which it has participated.

     If this denotes your  understanding  of our deal,  please affirm by signing
where indicated below and returning one executed copy of this letter.

     The  operations of this project shall be conducted  under the standard AAPL
                                                                            ----
FORM 610 - 1989 Model Form  Operating  Agreement,  and the  accounting  shall be
------------------------------------------------
governed by the COPAS 1984 Onshore. Both of which have been sent to your office.
                ------------------



                          BUCKINGHAM SQUARE, PENTHOUSE
                                  WEST BAY ROAD
                                       SMB
                                P.0. BOX 1159 GT
                          GRAND CAYMAN, CAYMAN ISLANDS


<PAGE>






     The Non-Operators will be named as "additional insured" on our policy as it
relates to this particular field.

     If you have any other questions or comments as regards this deal, please do
not hesitate to contact us at the numbers listed above. Thanks.


                                                Sincerely,

                                                /s/ (illegible)

                                                Krause Chemical Ltd.


We hereby  subscribe to a 5% Working Interest and the resultant 2.5% Net Revenue
Interest in the initial Green Ranch Project well, this 4 day of February, 2002.

Micron Enviro Systems, Inc.



By:  /s/ Bernard McDougall
   ---------------------------------
Bernard McDougall, Director































                                        2