Document:

THE COOPERATION AGREEMENT
        ON GAS PROJECT IN XINJI TOWN

      

      
        	Party
                A:	
                Xinjin
                  Country Gas Co.

              

      

       

      
        	Party
                B:	
                Beijing
                  Chen Guang Gas Co., Ltd.

              

      

       

      
        	Party
                C:	
                Construction
                  Bureau of Xinji Town (Witness)

              

      

      

      After
        friendly consultations and Party C’s approval, the Parties hereby agree as
        follows (the “Agreement”)
        on the
        Party B’s developing the pipeline gas project (the Project) in Xinji Town in
        cooperation with Party A.

      

      
        	1.	
                The
                  Project

              

      

      

      
        	
              	1.1	
                Party
                  B is responsible for constructing a CNG gas station and a pipeline
                  network
                  in the urban area, and Party A is responsible for gas supply projects
                  in
                  the residential communities. The Parties shall fulfill their obligations
                  respectively.

              

      

      

      
        	
              	1.2	
                Party
                  A is responsible for the alteration of residential communities
                  using LPG
                  and shall make them connect to gas supplied by Party B, and Party
                  A shall
                  still fulfill its obligations to the residential
                  communities.

              

      

      

      
        	
              	1.3	
                Considering
                  residential communities are not close to each other and the municipal
                  pipeline network can not be set up in a short time, Party A shall
                  provide
                  detailed materials showing their locations and current situations
                  about
                  gas connection, and make an annual plan about the municipal pipeline
                  network construction. Party A shall ensure Party B an amount of
                  new
                  customers in 2006.

              

      

      

      
        	
              	1.4	
                Party
                  A is responsible for developing all the old and new residential
                  communities and commercial customers, and Party B is responsible
                  for
                  developing industrial customers in Xinji Town. The Parties shall
                  make the
                  charging standards together.

              

      

      

      
        	
              	1.5	
                Party
                  B shall comply with the relevant regulations and rules on city
                  operation
                  in Xinji Town. For the land occupied by construction project with
                  an
                  operational purpose, RMB 450 per square meter shall be charged
                  in the
                  urban planned area, and RMB 300 per square meter outside the urban
                  planned
                  area.

              

      

      

      
        	2.	
                Initial
                  Residential Installation Fee

              

      

       

      
        	
              	2.1	
                Initial
                  residential installation fee for the residential communities requiring
                  alteration shall be RMB 1,700/unit for a household, and Party A
                  shall gain
                  RMB 900 of it and Party B RMB 800.

              

      

       

      
        	
              	2.2	
                Initial
                  residential installation fee for new residential communities shall
                  be RMB
                  2,600/unit for a household, and Party A shall gain RMB 800 of it
                  and Party
                  B RMB 1800.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
              	2.3	
                Initial
                  residential installation fee for all the new customers shall be
                  RMB
                  2,600/unit for a household in the
                  future.

              

      

      

      
        	3.	
                Gas
                  Price

              

      

      

      
        	
              	3.1	
                Party
                  B shall guarantee 30 year supply of gas, and that the gas price
                  shall be
                  adjusted according to the changing
                  market.

              

      

      

      
        	
              	3.2	
                The
                  trade price of the gas supplied to Party A by Party B shall be
                  RMB 2.5 per
                  cubic meter for the residential communities requiring alteration,
                  and RMB
                  2.9 per cubic meter for the new residential communities within
                  the first 3
                  years.

              

      

      

      
        	
              	3.3	
                The
                  final price of the gas supplied to customers by Party A shall be
                  RMB 2.9
                  per cubic meter for the residential communities requiring alteration,
                  and
                  RMB 3.3 per cubic meter for the new residential
                  communities.

              

      

      

      
        	
                4.

              	
                Settlement

              

      

      

      
        	
              	4.1	
                The
                  payment of the gas supplied to Party A by Party B shall be settled
                  by the
                  way of IC payment cards.

              

      

      

      
        	
                5.

              	
                Breach
                  Liabilities

              

      

      

      
        	
              	5.1	
                Party
                  B shall put its assets (including the land, house and all the instruments
                  of the gas station) in pledge, mortgage or guaranty to secure the
                  performance of obligations.

              

      

       

      
        	
              	5.2	
                Party
                  B has the right to refuse supplying gas to Party A if Party A breaches
                  this Agreement.

              

      

      

      
        	
              	5.3	
                Party
                  A shall gain the property right and operatiing right of the gas
                  station if
                  Party B breaches this Agreement.

              

      

      

      
        
          
            	6.	
                    The
                      Parties may negotiate and execute documents to supplement this
                      Agreement.
                      Such supplemental agreements shall have the same force and
                      effect as this
                      Agreement.

                  

          

        

      

      

      
        	
                7.

              	
                Party
                  A shall actively assist Party B in constructing the gas station
                  and urban
                  pipeline network. Party B shall ensure continuous and normal supply
                  of gas
                  and good performance of the
                  Project.

              

      

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
         

        
          Party
            A
            (Seal): Sealed

           

        

      

      Representative
        (Signature): Signed

       

      Date:
        May
        30,
        2006

      

      
        	 	Party B (Seal): Sealed
	 	 
	 	Representative (Signature): Signed
	 	 
	 	Date:
                May 30, 2006

      

      

      Party
        C
        (Seal): Sealed  

      

      Representative
        (Signature): Signed  

       

      Date:
        May
        30,
        2006

             

      
        
           

        

        
          3THE COOPERATION AGREEMENT
      

    

    Party
      A: Beijing
      Chen Guang Gas Co., Ltd. (Investor)

     

    Party
      B: Urban
      Management Bureau of Chengan Country (Investment Receiver)

     

    Party
      C: Xinji
      Town Municipal Government (Witness)

    

    To
      accelerate the development of municipal installations, improve living conditions
      and the environment, Urban Management Bureau of Chengan Country (hereinafter
      referred to as “Party
      B”)
      plans
      to develop the pipeline gas project in the urban area (the “Pipeline
      Project”).
      Beijing Chen Guang Gas Co., Ltd. (hereinafter referred to as “Party
      A”)
      bids
      for the Pipeline Project. After friendly consultations, the Parties hereby
      agree
      as follows (the “Agreement”):

    

    
      	1.	
              Party
                A shall invest in the Pipeline Project which costs RMB 30 million,
                and
                cover all the expenses except initial residential installation fees.
                The
                purpose of the Pipeline Project is:

            

    

    

    1.1 to
      construct a CNG-supply gas station with a set of instruments to store and
      regulate natural gas;

    

    1.2 to
      construct an urban pipeline network;

    

    1.3 to
      construct inner pipeline networks for residential communities, industrial
      plants, commercial and social organizations, and install pipes to connect
      gas;

    

    1.4 to
      construct a gas station in Chengan

    

    
      	2.	
              The
                Pipeline Project invested by Party A is designed to supply 1,000
                to 1,500
                households at present and 15,000 households in the future. The Pipeline
                Project shall be carried out in stages and the number of customers
                of
                every stage shall be determined by practical situation. Party A shall
                construct a gas station with the capacity of supplying gas to 15,000
                households. The urban pipeline network shall be gradually completed
                by the
                way of connecting inner pipeline networks through which the citizens
                will
                enjoy the benefit of natural gas ahead of
                time.

            

    

    

    
      	3.	
              Party
                A shall comply with PRC and local government laws, regulations and
                relevant rules during its construction and operation, and allow
                supervision and inspection by Party A.

            

    

    

    
      	
              4.

            	
              Party
                B’s Responsibilities during the construction of the Pipeline
                Project

            

    

    

    
      	
            	4.1	
              assisting
                Party A in the procedures for obtaining approvals granted by designing
                and
                planning department, labour department, environmental department,
                department of water & power; (Party A shall for all the relevant
                fees.)

            

    

    

    
      	
            	4.2	
              provision
                of the relevant blueprints and materials; repairing the roads broken
                during the construction; assisting Party A in obtaining the operating
                right and applying preferential treatment related to tax; provision
                of
                places to work and live, storerooms, water and electricity; other
                matters
                entrusted by Party A; (Party A shall for all the relevant
                fees.)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	4.3	
              assisting
                Party A in acquiring the right to use land and organizing relevant
                departments to inspect the construction; (Party A shall for all the
                relevant fees.)

            

    

    

    
      	
              5.

            	
              Party
                A has the exclusive right to operate the pipe gas project within
                the urban
                planned area of Chengan County for 25 years following the start of
                the gas
                station operation, and keep all the operational revenues. Party B
                shall
                grant permission if Party A wants to resume its right at the expiration
                after 25 years.

            

    

    

    
      	
              6.

            	
              Party
                A shall sign contracts having force and effects with customers at
                the time
                of charging initial residential installation fee, and guarantee as
                follows:

            

    

    

    
      	
            	6.1	
              Party
                A shall compensate for the economic losses of customers due to cutting
                the
                gas off except in the case of force
                majeure.

            

    

     

    
      	
            	6.2	
              Party
                A shall refund the initial residential fee if the gas cannot be connected
                to customers within 90 days following the
                payment.

            

    

    

    
      	
              7.

            	
              Party
                A shall finish its application and registration procedure of establishing
                a company before June 30 in 2006, and make the first customers connect
                to
                natural gas before December 31 in 2006; otherwise, this Agreement
                shall be
                terminated.

            

    

    

    
      	
              8.

            	
              The
                Parties may negotiate and execute documents to supplement this Agreement.
                Such supplemental agreements shall have the same force and effect
                as this
                Agreement.

            

    

    

    
      	
              9.

            	
              There
                are five originals of this agreement. Party A and Party B each hold
                two
                originals, and Party C holds one original. Any and all disputes arising
                out of or relating to the performance of this Agreement shall be
                settled
                by the Parties through friendly consultations. If the disputes are
                not
                resolved through friendly consultations, then each party agrees to
                be
                subject to the jurisdiction of the People’s Court of the locality where
                this Agreement is executed.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

      
        	
                Party
                  A (Seal): Sealed 

              	 	 
	 	 	 
	
                Representative
                  (Signature): Signed

              	 	 
	 	 	 
	
                Date:
                  April 18, 2006

              	 	 
	 	 	 
	 	 	
                Party
                  B (Seal): Sealed

              
	 	 	 
	 	 	
                Representative
                  (Signature): Signed

              
	 	 	 
	 	 	
                Date:
                  April 18, 2006

              
	 	 	 
	
                Party
                  C (Seal): Sealed 

              	 	 
	 	 	 
	
                Representative
                  (Signature): Signed

              	 	 
	 	 	 
	
                Date:
                  April 18, 2006

              	 	 

      

    

    
       

      
        
        

      

      
        3

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