June 22, 2001

Mr. Bud Ross
Bail Corporation
11952 Farley
Overland Park, KS   66213

RE:  Shiloh Project
     Cherokee Basin Coal Bed Methane

Dear Bud:

This letter shall serve as our agreement regarding the development of a coal bed
methane project in Southeast Kansas. This agreement is between Bail Corporation
hereinafter called "Company" and TCC Royalty Corp. and Austin Exploration
L.L.C., jointly hereinafter called "Consultants."

1.   Consultants agree to develop a coal bed methane project in Southeast Kansas
     called the Shiloh Project for the Company. The Shiloh Project is a specific
     area considered prospective for coal bed methane development and is termed
     the "Project." Consultants shall provide the usual geological and land maps
     for such a play.

2.   Company shall pay Consultants a $25,000.00 (U.S.) prospect fee for the
     project developed and pursued by Company. Company shall pay Consultants
     actual costs, including day rates, for scouting and takeoffs associated
     with determining land availability in the Project area. After development
     of the Shiloh Project, geological consulting services shall be billed at
     $500.00 per day and land consulting services shall be billed at $300.00 per
     day for landmen, $150.00 for staff time on an as needed basis. The first
     $5,000.00 of said services are included in the project fee paid herein.

3.   A ten township area of mutual interest (AMI) shall be formed around the
     Project area developed by Consultants. The AMI is defined in Exhibit A
     attached to this Agreement. within the AMI so formed, Consultants shall
     receive a 3% of 8/8ths overriding royalty on all leases, fee purchases or
     other contracts covering oil, and gas purchased within the AMI by Company
     or any of company's officers, directors, affiliates and subsidiaries.
     Except as required by statute or regulation the Company agrees to keep all
     information relating to the geological project developed under this
     agreement confidential and agree not to disclose said information to 3rd
     parties without first obtaining a confidentiality agreement.

4.   Said overriding royalty shall be free of all costs to the inlet of an
     independent third party's gathering system. Said overriding royalty shall
     apply to any extensions and renewals of said leases, purchases and
     contracts. The AMI so formed shall be for a period of 24 months and so long
     thereafter as Company actively pursues the leasing and development of coal
     bed methane in the project area.

<PAGE>


July 11,2001
Page 2


5.   Consultants offer no warranties on the project developed or services
     delivered under this agreement. Company agrees to indemnify and hold
     Consultants harmless from any and all claims, damages and judgments,
     including penalties, attorney's fees, costs and interest, if any, which may
     be a direct or indirect result of use or reliance upon any information or
     services supplied under this agreement.

This letter covers our entire understanding as of the date above. Please signify
your acceptance of the terms and conditions by signing and returning an original
copy.

Sincerely,


John K. Wilson

Accepted and agreed:

TCC Royalty Corp.

                                                 Dated
----------------------------------------               --------------------
Steven Tedesco


Austin Exploration, L.L.C.

                                                 Dated
----------------------------------------               --------------------
John K. Wilson, Member


                                                 Dated
----------------------------------------               --------------------
Charles Ross
Bail Corporation/President


<PAGE>


                                    EXHIBIT A


     The area as defined by the AMI between the Bail Corporation, the "Company"
and TCC Royalty Corp. and Austin Exploration L.L.C. Company, the "Consultants"
is as follows:

           Township 21 South Range 14 East:  All
           Township 21 South Range 15 East:  All
           Township 21 South Range 16 East:  All
           Township 21 South Range 17 East:  All
           Township 22 South Range 14 East:  All
           Township 22 South Range 15 East:  All
           Township 22 South Range 16 East:  All
           Township 22 South Range 17 East:  All
           Township 23 South Range 14 East:  North half of the Township
           Township 23 South Range 15 East:  North half of the Township
           Township 23 South Range 16 East:  North half of the Township
           Township 23 South Range 17 East:  North half of the Township





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