##### 



Exhibit 99
 POINT LISAS NITROGEN LIMITED
 TABLE OF CONTENTS
 PageREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    
    1FINANCIAL STATEMENTS FOR THE YEARS ENDED
DECEMBER 31, 2006 and 2005:Balance Sheets
    
    
    2Statements of Income
    
    
    3Statements of Changes in Shareholders Equity
    
    
    4Statements of Cash Flows
    
    
    5Notes to The Financial Statements
    
    
    6-17




---



##### 



REPORT OF INDEPENDENT REGISTERED  PUBLIC ACCOUNTING FIRM
 
       - 1 -




---



##### 



POINT LISAS NITROGEN LIMITED
 BALANCE SHEETS
AS OF DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 2006
    
    
    2005AssetsCURRENT ASSETS:Cash and cash equivalents
    
    $
    13,062
    
    
    $
    35,168Accounts receivable  affiliates (Notes 5 and 15)
    
    
    28,173
    
    
    
    13,985Accounts receivable  other
    
    
    890
    
    
    
    634Inventories (Note 6)
    
    
    738
    
    
    
    8,636Other current assets
    
    
    1,935
    
    
    
    1,440Total current assets
    
    
    44,798
    
    
    
    59,863NON-CURRENT ASSETS:Property, plant and equipment (Note 7)
    
    
    179,024
    
    
    
    185,192Other long-term assets (Note 8)
    
    
    810
    
    
    
    689Deferred income tax asset (Note 9)
    
    
    3,633
    
    
    
    15,365Total non-current assets
    
    
    183,467
    
    
    
    201,246TOTAL
    
    $
    228,265
    
    
    $
    261,109Liabilities and Shareholders EquityCURRENT LIABILITIES:Accounts payable
    
    $
    7,135
    
    
    $
    7,773Taxation payable
    
    
    4,530
    
    
    
    12,206Other current liabilities
    
    
    6,815
    
    
    
    8,815Total current liabilities
    
    
    18,480
    
    
    
    28,794ADVANCES FROM SHAREHOLDERS (Notes 10 and 15)
    
    
    75,522
    
    
    
    108,022Total liabilities
    
    
    94,002
    
    
    
    136,816SHAREHOLDERS EQUITY:Capital, of no par value (Note 11)
    
    
    9,854
    
    
    
    9,854Retained earnings
    
    
    124,409
    
    
    
    114,439Total stockholders equity
    
    
    134,263
    
    
    
    124,293TOTAL
    
    $
    228,265
    
    
    $
    261,109
  - 2 -




---



##### 



POINT LISAS NITROGEN LIMITED
 STATEMENTS OF INCOME
FOR THE YEARS ENDED  DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 2006
    
    
    2005SALES:To affiliates (Note 15)
    
    $
    159,275
    
    
    $
    167,287COST AND EXPENSES:Cost of sales (Notes 13 and 16)
    
    
    (97,552
    )
    
    
    (86,143
    )General and administration
    
    
    (2,031
    )
    
    
    (2,266
    )Total cost and expenses
    
    
    (99,583
    )
    
    
    (88,409
    )Operating income
    
    
    59,692
    
    
    
    78,878Other income (Note 12)
    
    
    1,266
    
    
    
    831Income before income taxes
    
    
    60,958
    
    
    
    79,709Income taxes  current charge
    
    
    (4,256
    )
    
    
    (12,079
    ) deferred income tax
    
    
    (11,732
    )
    
    
    (25,704
    )Total income taxes (Note 9)
    
    
    (15,988
    )
    
    
    (37,783
    )NET INCOME
    
    $
    44,970
    
    
    $
    41,926
  - 3 -




---



##### 



POINT LISAS NITROGEN LIMITED
 STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
FOR THE YEARS ENDED  DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 RetainedCapital
    
    
    Earnings
    
    
    TotalBalance at December 31, 2004
    
    $
    9,854
    
    
    $
    160,013
    
    
    $
    169,867Net income
    
    
    
    
    
    
    41,926
    
    
    
    41,926Less: dividends paid (Note 14)
    
    
    
    
    
    
    (87,500
    )
    
    
    (87,500
    )Balance at December 31, 2005
    
    
    9,854
    
    
    
    114,439
    
    
    
    124,293Net income
    
    
    
    
    
    
    44,970
    
    
    
    44,970Less: dividends paid (Note 14)
    
    
    
    
    
    
    (35,000
    )
    
    
    (35,000
    )Balance at December 31, 2006
    
    $
    9,854
    
    
    $
    124,409
    
    
    $
    134,263
  - 4 -




---



##### 



POINT LISAS NITROGEN LIMITED
 STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED  DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    44,970
    
    
    $
    41,926Adjustments to reconcile net income to net cash provided
by operations:Depreciation and amortization
    
    
    17,390
    
    
    
    16,162Amortization of deferred gain from capital spare parts pooling
    
    
    (165
    )
    
    
    (180
    )Deferred income taxes (Note 9)
    
    
    11,732
    
    
    
    25,70473,927
    
    
    
    83,612Changes in current assets and liabilities:Accounts receivable  affiliates
    
    
    (14,188
    )
    
    
    2,276Accounts receivable  other
    
    
    (256
    )
    
    
    (125
    )Inventories
    
    
    7,898
    
    
    
    (2,796
    )Other current assets
    
    
    (495
    )
    
    
    261Accounts payable
    
    
    (638
    )
    
    
    1,268Taxation payable
    
    
    (7,676
    )
    
    
    12,206Other current liabilities
    
    
    (2,000
    )
    
    
    1,731Net cash from operating activities
    
    
    56,572
    
    
    
    98,433CASH FLOWS FROM INVESTING ACTIVITIES:Capital expenditures
    
    $
    (11,178
    )
    
    $
    (2,502
    )Restricted cash
    
    
     ̄
    
    
    
    24,144Proceeds from parts pool
    
    
     ̄
    
    
    
    1,499Net cash (used in) from investing activities
    
    
    (11,178
    )
    
    
    23,141CASH FLOWS FROM FINANCING ACTIVITIES:Repayments of advances from shareholders
    
    
    (32,500
    )
    
    
     ̄Dividend payments
    
    
    (35,000
    )
    
    
    (87,500
    )Net cash used in financing activities
    
    
    (67,500
    )
    
    
    (87,500
    )NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS
    
    
    (22,106
    )
    
    
    34,074CASH AND CASH EQUIVALENTS:Beginning of year
    
    
    35,168
    
    
    
    1,094End of year
    
    $
    13,062
    
    
    $
    35,168SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:Income taxes paid
    
    $
    12,312
    
    
    $
    248Interest received
    
    $
    839
    
    
    $
    707
  - 5 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED  DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 1.
    
    ORGANIZATION AND OPERATIONSPoint Lisas Nitrogen Limited (the Company) was incorporated in the Republic of Trinidad and
Tobago in 1994 to own and operate an anhydrous ammonia plant in that country. Koch Mineral
Services LLC (Koch) and Terra Industries Inc., corporations incorporated in the United
States of America, are the ultimate parent companies each owning 50% of the Company.Koch Nitrogen International Sárl (as affiliate of Koch) and Terra Industries Inc. are
contractually obligated to purchase 100% of the Companys production for the period of 20
years ending September 2018, under terms also described elsewhere herein.As discussed in Note 15(a) the Companys primary raw material is natural gas, which is
purchased from the National Gas Company of Trinidad and Tobago under a 20-year take or pay
contract dated October 18, 1996. Other principal components of cost of goods sold include
water and power, which are currently available only from state monopolies in the Republic of
Trinidad and Tobago, and certain catalysts which are available from multiple sources, except
one critical catalyst which is available only via one supplier.2.
    
    CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTYCertain amounts included in or affecting the Companys financial statements and related
disclosure must be estimated, requiring the Company to make assumptions with respect to values
or conditions which cannot be known with certainty at the time the financial statements are
prepared. A critical accounting estimate is one which is both important to the portrayal of
the Companys financial condition and results and requires managements most difficult,
subjective or complex judgments, often as a result of the need to make estimates about the
effect of matters that are inherently uncertain. The Company evaluates such estimates on an
ongoing basis based upon historical results and experience, consultation with experts, trends
and other methods considered reasonable in the particular circumstances, as well as the
forecasts as to how these might change in the future.
 - 6 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED  DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 a.
    
    Impairment- The Company has made significant investments in property, plant
and equipment. These assets are tested, from a plant perspective, for impairment when
circumstances indicate that there may be a potential impairment. Estimating recoverable
amounts of the property, plant and equipment must in part be based on managements
evaluations, including estimates of future performance, revenue generating capacity of
the assets, and assumptions of the future market conditions. Changes in circumstances
and in managements evaluations and assumptions may give rise to impairment losses in
the relevant periods. The company has assessed no impairment loss for the year (2005:
none).b.
    
    Depreciation and amortization- Depreciation and amortization are based on
management estimates of the future useful life of long-lived assets. Estimates may
change due to technological developments, competition, changes in market conditions and
other factors and may result in changes in the estimated useful life and in the
amortization or depreciation charges. The Company reviews the future useful life of
property, plant and equipment and intangible assets periodically taking into
consideration the factors mentioned above and all other important factors. In case of
significant changes in the estimated useful lives, depreciation and amortization charges
are adjusted prospectively.c.
    
    Income taxes- The Company is subject to taxes in accordance with the tax laws of
Trinidad & Tobago. The laws do not include a provision specifically for the wear and
tear of ammonia plants, however it allows a 25% wear and tear allowance for the type of
equipment that forms an integral part of an ammonia plant. In this regard the Companys
management, for tax purposes, has taken a 25% allowance for the wear and tear of the
plant. The issue of the rate of wear and tear of the plant has been brought to the
attention of the Board of Inland Revenue, who has advised verbally that the allowance
should be 12 1/2% instead of 25%. In these financial statements taxation provision is
based on a 25% allowance and as such any change in the rate of allowance will have an
impact on the financial position of the Company. Any such change will be accounted for
prospectively.
 - 7 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED  DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 3.
    
    RECENTLY ISSUED ACCOUNTING STANDARDSIn July 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No.
48, Accounting for Uncertainty in Income Taxes, (FIN 48). FIN 48 requires that realization
of an uncertain income tax position must be more likely than not (i.e. greater than 50%
likelihood of receiving a benefit) before it can be recognized in the financial statements.
Further, FIN 48 prescribes the benefit to be recorded in the financial statements as the
amount most likely to be realized assuming a review by tax authorities having all relevant
information and applying current conventions. FIN 48 also clarifies the financial statement
classification of tax-related penalties and interest and sets forth new disclosures regarding
unrecognized tax benefits. FIN 48 is effective in 2007 for the Company. FIN 48 is currently
being evaluated by the Company for its full impact. At this time, the Company has not
completed its assessment of FIN 48.4.
    
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 a.
    
    Reporting currency and basis of presentation- Substantially all costs incurred
to build the Companys operating facilities were incurred in US dollars. In addition,
all sales are billed and collected in US dollars. On-going operating costs (except for
labor and contract labor which is paid in TT$) are incurred and paid in US dollars or
are linked to the US dollar, and amounts due to and from shareholders are denominated in
US dollars. Accordingly, the US dollar has been selected as the reporting and
functional currency for the financial statements, which have been prepared in accordance
with generally accepted accounting principles of the United States of America.
Substantially all items of property, plant and equipment and other long-term assets are
located in the Republic of Trinidad and Tobago.
 - 8 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED  DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 b.
    
    Use of estimates-The preparation of financial statements in conformity with
generally accepted accounting principles of the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets,
liabilities, the disclosure of contingent assets and liabilities at year end and the
reported amounts of revenues and expenses during the year. Actual results may differ
from those estimates.c.
    
    Income taxes-Income tax expense is the sum of tax currently payable and
deferred tax. The tax currently payable is based on taxable profit for the year using
the tax rates that have been enacted at the date of the balance sheets. Deferred income
tax assets and liabilities are recorded based on the difference between the financial
statement and income tax basis of assets using enacted rates at the time the differences
are expected to reverse. Deferred tax expense is the change during the year in the
deferred tax assets.d.
    
    Property, plant and equipment-Property, plant and equipment are stated at cost
less accumulated depreciation. Depreciation is provided for on the straight-line basis
at varying rates sufficient to write off the cost of the assets over their estimated
useful lives as follows:
 Buildings and leasehold improvements
    
    20 yearsPlant and equipment
    
    3 to 20 yearsOther equipment
    
    3 to 15 years
 Interest costs attributable to major construction projects are capitalized in the
appropriate asset account and amortized over the estimated useful life of the related
asset.Capital work-in-progress is stated at cost. Depreciation charges are deferred on
capital work-in-progress until project completion, at which time such assets are
transferred to the specific property, plant and equipment account.Capital spares that belong to the spare parts pools are stated at cost less accumulated
depreciation. Depreciation is provided for on a straight-line basis to write off the
cost of the asset over their estimated useful lives. These actual transfers into the
pool were done at a fair value using an indexing procedure with reference to an
industry authority. The surplus arising thereon is being deferred and recognized in
the income statement over the remaining useful life of the spares. The deferred gain
recognized by the Company in 2006 was $165 (2005: $180).
 - 9 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 e.
    
    Capital contributions and site lease premium- Capital contribution are related
to the utility supply is being amortized over twenty years (20), the approximate life of
the plant. The site lease premium is amortized over the term of the thirty year (30)
site lease.d.
    
    Impairment of assets- At each balance sheet date the Company reviews the
carrying amount of its manufacturing plant to determine whether there is any indication
that those assets have suffered loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss
(if any). An impairment loss is recognized in the Companys statement of income.e.
    
    Inventories-Inventories are stated at the lower of cost or net realizable
value. Cost is determined using the following basis:
 i.
    
    Items purchased from third parties are valued at cost on the weighted
average basis;ii.
    
    Finished goods using the first-in first-out method are valued at
total production cost which includes all direct overheads.
 f.
    
    Major maintenance costs (turnaround)-Major maintenance costs (turnaround) are
expensed in the year in which the actual expenditure is incurred.g.
    
    Revenue recognition-Sales revenue is recognized when title transfers to the
customer upon completion of loading the shipping vessel as evidenced by the bill of
lading.h.
    
    Cash and cash equivalentsCash and cash equivalents include cash on hand and in
banks.
 - 10 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 5.
    
    ACCOUNTS RECEIVABLE  AFFILIATES
 2006
    
    
    2005Koch Nitrogen International Sarl
    
    $
    18,677
    
    
    $
    Terra Industries Inc.
    
    
    9,496
    
    
    
    13,985$
    28,173
    
    
    $
    13,985
 6.
    
    INVENTORIES
 2006
    
    
    2005Finished goods  ammonia
    
    $
    475
    
    
    $
    8,406Chemicals
    
    
    263
    
    
    
    230$
    738
    
    
    $
    8,636
 7.
    
    PROPERTY, PLANT AND EQUIPMENT
 2006
    
    
    2005Plant and equipment
    
    $
    294,204
    
    
    $
    292,595Capital work in progress
    
    
    8,734
    
    
    
    1,667Other equipment
    
    
    3,279
    
    
    
    3,171Building and leasehold improvements
    
    
    1,413
    
    
    
    772307,630
    
    
    
    298,205Less: accumulated depreciation and amortization
    
    
    (128,582
    )
    
    
    (113,025
    )179,048
    
    
    
    185,180Add: interest in capital spare parts pools
    
    
    1,849
    
    
    
    2,050Less: deferred gains on spare parts pools
    
    
    (1,873
    )
    
    
    (2,038
    )$
    179,024
    
    
    $
    185,192
 - 11 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 In April 2004 and January 2005, the Company entered into an arrangement with three other
companies which own substantially similar ammonia plants in the Republic of Trinidad and
Tobago for the pooling of certain capital spares. Under this agreement, the Company acquired
a proportionate interest in spares that these companies owned and transferred a proportionate
interest in its own spares to these other companies.8.
    
    OTHER LONG-TERM ASSETS
 2006
    
    
    2005Capital contribution
    
    $
    598
    
    
    $
    598Site lease premium
    
    
    406
    
    
    
    406Lease option
    
    
    164
    
    
    
    Other
    
    
    34
    
    
    
    341,202
    
    
    
    1,038Less: accumulated amortization
    
    
    (392
    )
    
    
    (349
    )$
    810
    
    
    $
    689
 - 12 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 9.
    
    INCOME TAXES
 2006
    
    
    2005The effective tax rates differ from the statutory
tax rate of 35% for the following reasons:Expected income taxes
    
    $
    21,335
    
    
    $
    27,989Tax holiday
    
    
    
    
    
    
    (5,830
    )Income exempt from tax
    
    
    (9,507
    )
    
    
    Utilization of depreciation tax benefit
    
    
    4,001
    
    
    
    15,548Other
    
    
    159
    
    
    
    167Taxation expense
    
    $
    15,988
    
    
    $
    37,783Tax payable on current year income
    
    $
    4,097
    
    
    $
    11,912Deferred income tax
    
    
    11,732
    
    
    
    25,704Green fund levy
    
    
    159
    
    
    
    167Taxation expense
    
    $
    15,988
    
    
    $
    37,7832006
    
    
    
    2005Deferred income tax asset (liability):Property, plant and equipment
    
    $
    (1,388
    )
    
    $
    8,937Deferred borrowing cost
    
    
    5,021
    
    
    
    6,428$
    3,633
    
    
    $
    15,365
  - 13 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 10.
    
    ADVANCES FROM SHAREHOLDERS
 2006
    
    
    2005KNC Trinidad Limited
    
    $
    37,761
    
    
    $
    54,011Terra Nitrogen Trinidad Limited
    
    
    37,761
    
    
    
    54,011$
    75,522
    
    
    $
    108,022
 Advances from shareholders are unsecured, interest free, and repayable as and when
funds are available.11.
    
    SHAREHOLDERS EQUITY
 2006
    
    
    2005Capital:Authorized:Unlimited shares of no par value
Issued and fully paid:60,000,002 ordinary share of no par value
    
    $
    9,854
    
    
    $
    9,854
 12.
    
    OTHER INCOMEOther income includes interest income received on the commercial bank accounts.13.
    
    PENSION BENEFITSThe Company maintains a defined contribution pension plan for all permanent employees where
the Company contributes 8% (6% up to June 30, 2005) of an employees base pay to a deferred
annuity naming each employee as the beneficiary. Contributions for the year which amounted
to $164 (2005: $133) are included in cost of sales.
 - 14 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 14.
    
    DIVIDENDSDuring the year by Board Resolution dated January 31, 2006, a dividend in the amount of
$35,000 was declared and paid. During 2005 dividends totaling $87,500 were declared and
paid.15.
    
    RELATED PARTY BALANCES AND TRANSACTIONSThe Company has entered into contracts for the sale of all of the Companys production of
anhydrous ammonia to Koch Nitrogen International Sárl (an affiliate of Koch Mineral Services
LLC) and Terra Industries Inc. until September 29, 2018. Thereafter, the contract is
automatically renewed for consecutive one year periods unless otherwise terminated by either
party.
 2006
    
    
    2005Sales:Terra Industries Inc.
    
    $
    71,318
    
    
    $
    87,303Koch Nitrogen International Sarl
    
    
    87,957
    
    
    
    79,984$
    159,275
    
    
    $
    167,287Advances from shareholders
    
    $
    75,522
    
    
    $
    108,022Accounts receivable  affiliates
    
    $
    28,173
    
    
    $
    13,985
 - 15 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 16.
    
    COMMITMENTS
 a.
    
    Natural gas supplyUnder the terms of a 20-year take or pay contract the Company is required to purchase
a maximum of 80% of the Annual Contract Quantity (ACQ) of gas in a 365 day year. The
gas price is linked to an Ammonia Reference Price which escalates annually by 4%
compounded in each subsequent twelve month period after the sixtieth month. The
shortfall of natural gas below the ACQ must be purchased by the Company at the average
annual price for the contract year. The payment for gas not taken can be recovered
over the following five years by not paying for gas received in excess of 80% of the
ACQ. Minimum commitments under this contract are as follows:
 2007
    
    $
    18,7722008
    
    
    19,5232009
    
    
    20,3042010
    
    
    21,1162011
    
    
    21,9612012-2018
    
    
    172,888$
    274,564
 Expenditure for the year amounted to $48,486 (2005: $55,202).b.
    
    Pipeline equipmentThe Company has entered into an equipment lease agreement with the National Gas Company
of Trinidad and Tobago Limited for the lease of certain pipeline equipment used to
transport ammonia production to a port facility. This lease is for a period of twenty
(20) years commencing July 22, 1998. The annual lease payments are based on a
calculation linked to the price of ammonia, and are only required if the market price
exceeds the average of $170.00 (one hundred and seventy dollars) per metric ton for the
twelve month period commencing each July 22. Annual lease payments are not to exceed
$2,300 per annum. Expenditure for the year amounted to $2,300 (2005: $2,300).
 - 16 -




---



##### 



POINT LISAS NITROGEN LIMITED
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
   DECEMBER 31, 2006 AND 2005  (Expressed in thousands of United States dollars)
 c.
    
    Plant siteThe Company has entered into lease agreements for its plant site and right of way for
the common corridor to a port facility. These leases are for a period of thirty (30)
years which commenced October, 1996 and January, 1997 and carry an option to renew for
a further thirty (30) years.Under the terms of the agreements, annual lease payments are as follows:
 2007
    
    $4622008
    
    
    5152009
    
    
    5152010
    
    
    5152011
    
    
    5152012-2018
    
    
    9,352$
    11,874
 Expenditure for the year amounted to $462 (2005: $462).From 2006, the lease commitments may increase or decrease based on the Consumer Price
Index in the United States of America and the Index of Prices in The Republic of
Trinidad and Tobago.17.
    
    CONTINGENT LIABILITIES
 2006
    
    
    2005Custom bonds
    
    $
    245
    
    
    $
    245
 18.
    
    FINANCIAL INSTRUMENTSShort-term financial assets and liabilitiesThe carrying amount of short-term financial assets and liabilities comprising cash and cash
equivalents, accounts receivable and accounts payable approximate their fair market values.
 * * * * * *
 - 17 -