Document:

EXHIBIT 10.31
                                                                   -------------

                       FIRST AMENDMENT TO LOAN ARRANGEMENT

This First Amendment to Loan Arrangement ("Amendment") is between Portland
Brewing Company, an Oregon corporation ("Borrower") and MacTarnahan Limited
Partnership, an Oregon limited partnership ("Lender").

                                    RECITALS

    A.   Borrower  and Lender are parties to a  Promissory  Note (the  "Existing
         Note"), and an Agreement Concerning Loans and Security Interests,  each
         dated November 1, 2001;
    B.   Borrower has requested that certain  amendments be made to the Existing
         Note; and

    C.   Lender is willing to make certain  amendments  to the Existing  Note on
         the terms and conditions provided in this Amendment.

                                    AGREEMENT

    1.   Amendments to Existing Note.

              Effective as of this Amendment, the Existing Note is amended in
         accordance with the terms of this Section 1; except as so amended, the
         Existing Note and the Agreement Concerning Loans and Security Interests
         will continue to remain in all respects in full force and effect.

         1.1  Section 1(a) is amended to read: "on December 1, 2001 - and on the
              same day of each of the following 34 months, with the exception of
              the months June 2002 through  November 2002 - $15,000.00  together
              with accrued interest;"

         1.2  Section  1(b) is amended to read:  "on April 10, 2003 - and on the
              same day of each following year until the entire principal amount,
              together  with accrued  interest,  has been paid in its entirety -
              $35,000.00;"

         1.3  Section  1(c) is amended to read:  "on July 10,  2003 - and on the
              same day of each following year until the entire principal amount,
              together  with accrued  interest,  has been paid in its entirety -
              $35,000.00;"

    2.   Interest.  Interest  between the date of this Amendment and December 1,
         2002 will be calculated according to the terms of the Existing Note and
         will be accrued  monthly.  These amounts will be added to the principal
         amount due under the Existing Note.

    3.   Further  Assurances.  The parties  will sign other  documents  and take
         other actions reasonably  necessary to further effect and evidence this
         Agreement.

    4.   Governing  Law. This  Agreement is governed by the laws of the State of
         Oregon,  without giving effect to any conflict-of-law  principle of any
         jurisdiction.

 1 - FIRST AMENDMENT TO LOAN AGREEMENT
<PAGE>

    5.   Venue.  Any action or proceeding  arising out of this Agreement will be
         litigated in courts  located in Multnomah  County,  Oregon.  Each party
         consents  and  submits  to the  jurisdiction  of any local,  state,  or
         federal court located in Multnomah County, Oregon.

    6.   Attorney's  Fees.  If any  arbitration  or  litigation is instituted to
         interpret,  enforce,  or  rescind  this  Agreement,  including  but not
         limited to any  proceeding  brought under the United States  Bankruptcy
         Code, the prevailing  party on a claim will be entitled to recover with
         respect to the claim,  in addition  to any other  relief  awarded,  the
         prevailing  party's  reasonable  attorney's  fees,  costs, and expenses
         incurred at  arbitration,  at trial,  on appeal,  and on  petition  for
         review, as determined by the arbitrator or court.

    7.   Entire Agreement.  This Agreement contains the entire  understanding of
         the  parties  regarding  the  subject  matter  of  this  Agreement  and
         supersedes all prior and  contemporaneous  negotiations and agreements,
         whether  written  or oral,  between  the  parties  with  respect to the
         subject matter of this Agreement.

    8.   Signatures.  This  Agreement  may  be  signed  in  counterparts.  A fax
         transmission  of a  signature  page  will  be  considered  an  original
         signature page. At the request of a party, the other party will confirm
         a  fax-transmitted  signature page by delivering an original  signature
         page to the requesting party.

                           [signature page to follow]

 2 - FIRST AMENDMENT TO LOAN AGREEMENT
<PAGE>

           Dated effective:  June 1, 2002

                          MacTarnahan Limited Partnership, by
                          Harmer Mill & Logging Supply Co., its General Partner

                          /s/ ROBERT M. MACTARNAHAN
                          ---------------------------
                          By:  Robert M. MacTarnahan
                          Its: President

                           Portland Brewing Company

                           /s/ JEROME CHICVARA
                          ---------------------------
                           By: Jerome Chicvara
                           Its:  Chief Executive Officer

 3 - FIRST AMENDMENT TO LOAN AGREEMENT
<PAGE>Exhibit 10.01

[Petrogulf Corporation letterhead]

August 1, 2002

                                LETTER AGREEMENT

Mr. James W. Scott, President
Mid-Power Resources Corporation
3800 Howard Hughes Parkway, Suite 860
Las Vegas, Nevada 89109

Re:      Lakeside Prospect
         Claude Boudreaux Well
         SE/4 Section 11-12S-4W
         Cameron Parish, Louisiana

Dear Mr. Scott:

Petrogulf III, L.L.C. ("Petrogulf") is the owner of certain oil and gas rights
located in Cameron Parish, Louisiana identified in the documents listed below
("Prospect"). Said oil and gas rights are being contributed to the drilling of
the Claude Boudreaux well located in the Southeast Quarter of Section 11,
Township 12 South, Range 4 West, Cameron Parish, Louisiana ("Prospect Well").
Petrogulf Corporation is the Operator of the subject well.

Enclosed you will find:

1.       Original Title Opinion dated July 27, 2001, and curative,
2.       Partial Assignment of Oil, Gas and Mineral Leases dated August 9, 2001,
3.       Order Number 649-C-11 dated September 6, 2001,
4.       Letter Agreement dated August 7, 2001,
5.       Participation Agreement dated May 7, 2001,
6.       Model Form Operating Agreement dated April 2, 2001.
         ("Documents")

These Documents are furnished to Mid-Power Resources Corporation ("Mid-Power")
for the sole purpose of evaluating the merits of participation in the drilling
of the Prospect Well. Mid-Power agrees not to divulge to third parties or to
acquire any oil and gas rights within the Prospect except in accordance with the
terms and conditions of this Letter Agreement. Mid-Power acknowledges that
Petrogulf has commenced actual drilling operations on the Prospect Well and that
time is of the essence.

Petrogulf makes this working interest in the Prospect and Prospect Well
available to Mid-Power subject to the above referenced Documents without
warranty of title except by, through, and under Petrogulf but not otherwise.
This Letter Agreement replaces and supplants any and all other discussions or
offers concerning the Prospect and the Prospect Well, and contains the entire
agreement between Petrogulf and Mid-Power.

<PAGE>

Petrogulf hereby makes Mid-Power this one time offer to participate in the
Prospect and the Prospect Well for a full-undivided twenty five percent (25.00%)
working interest for a drilling and obligation payment of Nine Hundred Eighty
Three Thousand Twenty Five and 09/100 Dollars ($983,025.09) the ("Participation
Payment"). It is understood and agreed that Mid-Power shall remain liable for
its' 25.00% working interest share of all costs associated with the Prospect and
Prospect well and likewise Petrogulf shall reimburse Mid-Power for any remaining
balance of the Participation Payment after deducting the Mid-Power 25.00%
working interest share of financial obligations associated with the Mid-Power
25.00% working interest in the Prospect and Prospect Well, all in accordance
with the terms and conditions contained in the above referenced Documents.

This Letter Agreement shall expire by its' own terms at the close of business in
Petrogulf's Denver office August 2, 2002, without further obligations between
Petrogulf and Mid-Power. Please signify your understanding and agreement to the
terms and conditions contained herein by signing, dating and returning one copy
of this Letter Agreement with your payment of $983,025.09. If you should have
any questions, please do not hesitate to contact Lyell A. Coe at 303-893-5400,
extension 28.

Very truly yours,

Petrogulf III, L.L.C.

/s/ Betty A. Pennington
------------------------------
Betty A. Pennington
Agent

Agreed to and Accepted this 1st day of August, 2002,

Mid-Power Resources Corporation

By: /s/ James W. Scott
    --------------------------
    James W. Scott
    PresidentExhibit 10.02

                                LETTER AGREEMENT

This letter agreement is entered into by and between Mid-Power Resource
Corporation, a Nevada Corporation ("MPRC") and Edward Mike Davis and/or his
designees ("Davis") this 1st day of August, 2002.

Davis has previously presented to MPRC his initial opportunity to participate in
the Lakeside Prospect in Cameron Parrish, Loisiana. As a result, MPRC has
entered into a letter agreement dated August 1, 2002, with Petrogulf III L.L.C.,
a copy of said letter agreement is attached hereto and made a part hereof,
regarding the drilling and completing of the Claude Boudreaux #1 well located in
the SE/4 of Section 11, T 12 S, R 4 W, Lakeside Prospect, Cameron Parrish,
Louisiana. Petrogulf as operator, is now drilling and will attempt to drill said
well to an approximate total depth of 17,000 feet to the Marge Howie Formation.

The purpose of this letter agreement is to evidence an agreement by and between
MPRC and Davis, whereby MPRC shall immediately pay to Petrogulf the sum of
$983,025.09 for a 25% working interest in the above well. MPRC shall carry Davis
and/or his designee(s) for 35.5% of this 25% working interest free and clear
through the tanks or pipeline ready to sell oil and/or gas. It is understood and
agreed by the parties hereto that the total 25% working interest equates to
approximately 18.25% net revenue (Davis 8.875% WI and 6.47875% NRI and MPRC
16.125% WI and 11.77125% NRI) until payout in the above Claude Boudreaux #1 well
and producing unit. After payout is reached the parties hereto will jointly own
approximately 21.25% working interest and approximately 15.5% net revenue
interest (Davis 7.54375% WI and 5.5025% NRI and MPRC 13.70625% WI and 9.9975%
NRI).

Should there be any wells, including the Claude Boudreaux #1 well, drilled,
worked over or recompleted, or leases acquired on the above mentioned Lakeside
Prospect, MPRC agrees to carry Davis, for the same percentages as described
above, free through the tanks or pipelines ready to sell oil and/or gas on the
same basis mentioned herein.

MPRC and Davis hereby agree to treat this Letter Agreement as a Tax Partnership
and further agree that all allowable tax deductions generated by this venture
shall be allocated to the party whose funds have been used to pay such costs.

<PAGE>

Further, it is understood and agreed to by the parties hereto, that in the event
additional funds exceeding the above $983,025.09 are needed to drill and
complete the said Boudreaux well ready to produce oil and/or gas, MPRC will be
obligated to pay 100% of such amount, so Davis' interest is carried free through
the tanks or pipeline ready to sell oil and/or gas. However, should any of the
above funds be refunded by Petrogulf, such funds shall belong to MPRC.

It is agreed by the parties hereto that a fully executed fax copy of this
Agreement shall be deemed the same as a fully executed original Agreement.

This letter agreement shall be binding upon and inure to the benefit of the
parties hereto, their respective legal representatives, heirs and assigns.

In witness whereof, the Parties have signed this letter agreement effective as
of the date set forth above.

Parties:

/s/ Edward Mike Davis
------------------------------
Edward Mike Davis

Mid-Power Resource Corporation

By:  /s/ James W. Scott
   ---------------------------
    James W. Scott, President

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