Contract
      for Supply and Use of Natural Gas

    


    User:
      Beijing Zhong Ran Wei Ye Gas Co., Ltd. (hereinafter referred to as Party
      A)

    


    Supplier:
      Tianjin Dagang Oilfield Transportation Co., Ltd. (hereinafter referred to as
      Party B)

    


    With
      the
      purpose to clarify rights and obligations for Party A and Party B in the supply
      and use of gas, both Parties agree to enter into this Contract through
      consultation, pursuant to The
      Contract Law of the People's Republic of China, Administrative Measures on
      Municipal Gas, Regulations on Safety Management of Municipal
      Gas,
      and
      other relevant laws, rules and regulations.

    


    Article
      One Location, Type, Purpose and Amount of Gas Consumption

     

    
      	
              1.

            	
              Location:
                In the North China No.1 Machinery Plant in the eastern part of Qinxian
                County, Hebei Province and in Zhonggang Shareholding Co.,Ltd on the
                North
                Ringroad in Yutian County, Hebei
                Province.

            


    

    
      	 	 


      	
              2.

            	
              Type:
                Compressed Natural Gas (CNG)

            


      	 	 


    

    
      	
              3.

            	
              Purpose:
                Gas for industrial production by Party
                A

            


    

    
      	 	 


      	
              4.

            	
              Amount:
                In the first three months since gas supply commences, supply to Qinxian
                County shall range within five thousand (5000) cubic meters per day;
                three
                months after the supply commences, supply to Yutian County shall
                range
                within ten thousand (10,000) cubic meters per day. Should major changes
                appear to the abovementioned monthly gas supply, especially when
                monthly
                supply fails to meet the agreed amount, the Parties shall promptly
                negotiate and sign supplementary
                agreements.

            


    

    


    Article
      Two Pattern and Quality of Gas Supply

     

    
      	
              1.

            	
              Pattern
                of Gas Supply

            


    

     

    Party
      B
      shall supply gas to Party A via vehicle.

     

    
      	
              2.

            	
              Quality
                of Gas Supply

            


    

     

    The
      quality of natural gas provided by Party B shall meet the standards of
      CategoryII
      natural
      gas set forth in GB17820-1999. Party B shall submit to Party A regular reports
      on gas composition, and Party A can carry out regular sampling tests. Party
      A
      shall use gas source from the CNG mother station at Dagang Oil field.


     

    
      	
              3.

            	
              In
                order to avoid suspense of gas supply due to emergencies, Party A
                shall
                provide a gas storage backup vehicle at each gas supply
                location.

            


    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
      Three Price, Metering and Payment of Gas Consumption

     

    
      	
              1.

            	
              Price
                

            


    

     

    Price:
      RMB 2.3 (SAY: two point three RMB) per cubic meter for Qinxian County and RMB
      2.4 (SAY: two point four RMB) per cubic meter for Yutian County (gas fees,
      transportation fees and other charges included). 

     

    Should
      the price of natural gas be modified by the government through normal macro
      price adjustment, the Parties shall negotiate and sign supplementary agreements
      to adjust the price according to the documents of National Development and
      Reform Commission and market price; should the price of fuel oil fluctuate
      over
      6%, the price of gas supply shall be adjusted accordingly.

    


    
      	
              2.

            	
              Metering
                and Payment

            


    

    


    
      	
              2.1

            	
              Metering

            


    

     

    Metering
      shall be based on interchange receipts at CNG filling stations. Should any
      disputes arise, the Parties shall resolve through consultation.

    


    
      	
              2.2

            	
              Payment

            


    

     

    Payment
      shall be made monthly, in the form of deposit. Party A shall pay RMB300,000
      (SAY: three hundred thousand RMB) as deposit to Party B in advance. Party B
      shall verify and deduct due amount according to actual gas consumption. When
      deposit decreases to less than RMB 50,000 (SAY: fifty thousand RMB), Party
      B
      shall inform Party A in writing or by phone calls to promptly make up the
      deposit amount. When deposit decreases to less than RMB 10,000 (SAY: ten
      thousand RMB), Party B has the right to unilaterally suspense gas supply, and
      Party A shall bear its loss due to this conduct. Payment shall be made on the
      20th
      day of
      each and every month based on the aggregate amount. Party B shall provide VAT
      invoice and cargo transport invoice.

    


    Article
      Four Delivery point and Risk Transfer

    


    
      	
              1.

            	
              Delivery
                point: In the North China No.1 Machinery Plant in the eastern part
                of
                Qinxian County, Hebei Province and in Zhonggang Shareholding Co.,Ltd
                on
                the North Ringroad in Yutian County, Hebei
                Province.

            


    

    


    
      	
              2.

            	
              When
                Party B delivers CNG via vehicle to the delivery point, both the
                ownership
                of CNG and vehicle risks are transferred to Party
                A.

            


    

    


    Article
      Five Rights and Obligations of Party B

     

    Supply
      gas to Party A in accordance with the time, quantity and quality hereby agreed
      in this Contract.

    


    Article
      Six Rights and Obligations of Party A

     

    Receive,
      use CNG and make payment as hereby agreed in this Contract.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
      Seven Liabilities for Breach of Contract

    


    
      	
              1.

            	
              Party
                A’s Liabilities for Breach of Contract


            


    

    


    Should
      Party A breach any term in this Contract, Party B has the right to terminate
      this Contract and require Party A to bear liabilities for breach of
      contract.

    


    
      	
              2.

            	
              Party
                B’s Liabilities for Breach of
                Contract

            


    

    


    Should
      Party B fail to supply gas according to the time, quantity and quality agreed
      in
      this Contract, Party A has the right to terminate this Contract and require
      Party B to bear liabilities for breach of contract.

    


    Article
      Eight Contract Life

    


    The
      term
      of cooperation between the two Parties is 5 years. This Contract is valid from
      January 10, 2007 to January 9, 2008, as presently agreed by the Parties.
      Contracts shall be made yearly. When cooperation expires, if Party A still
      needs
      gas supply from Party B, a separate Supply Contract shall be signed by and
      between the two Parties.

    


    Article
      Nine Amendment to the Contract

    


    Should
      the Parties need to amend the terms of this Contract or handle issues not
      covered under this Contract, they shall sign supplementary agreements through
      consultation. Such supplementary agreements shall have the same force and effect
      as this Contract.

    


    Article
      Ten Settlement of Disputes

    


    Should
      any disputes arise from the implementation of this Contract, the Parties shall
      attempt in the first instance to resolve such dispute through friendly
      consultations. Should such consultation or mediation fail, the Parties shall
      file litigation at the People’s Court of the region where this Contract is
      signed.

    


    Article
      Eleven Exemption Condition 

    


    In
      any
      case of Force Majeure event which is unforeseeable, unavoidable or
      insurmountable, The Party Claiming Force Majeure shall inform the other Party
      promptly. Both Parties shall minimize losses due to Force Majeure through active
      measures. 

    


    Article
      Twelve Miscellaneous Provisions

    


    
      	
              1.

            	
              Party
                B shall provide the following
                licenses:

            


    

    


    
      	
              1.1

            	
              Gas
                Filling License

            


    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              1.2

            	
              Hazardous
                Substance Business License

            


    

    


    
      	
              1.3

            	
              Hazardous
                Substance Transport License

            


    

    


    
      	
              1.4

            	
              Gas
                Composition Test Report ( on regular
                basis)

            


    

    


    
      	
              2.

            	
              Any
                loss due to Force Majure shall be borne respectively by each Party,
                or be
                resolved through consultation.

            


    

    
      	 	 


      	
              3.

            	
              As
                for any other matters not covered under this Contract, the Parties
                shall
                sign supplementary agreements through
                consultation.

            


      	 	 


    

    
      	
              4.

            	
              This
                Contract is executed in four originals, each Party holds two originals.
                This Contract shall enter into force when duly signed and sealed
                by the
                two Parties.

            


    

    


    Party
      A:
Beijing
      Zhong Ran Wei Ye Gas Co., Ltd.  

    Sealed
                     

    Representative:
             

    Signed   

    


    Party
      B:
      Tianjin
      Dagang Oilfield Transportation Co., Ltd

    Sealed
      

    Representative:

    Signed

    


    Date:
      January 8, 2007

    Signatory
      Location: Dagang Oilfield