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JOINT VENTURE AGREEMENT

     This  JOINT  VENTURE AGREEMENT ("Agreement") has been entered into this 6th
day  of  January  1997,  by  and  between  U.S.  Crude  Ltd. ("USCR") and Encore
Productions  ("Encore"),  hereinafter collectively referred to as "the Parties".

     The  purpose  of  this Agreement is to 1) Describe the working relationship
between  the  above  mentioned  parties  with  respect to an oil and gas venture
involving  primary  and  secondary  production  in Kansas and Oklahoma, and also
properties  in  other states that may be acquired as part of this venture, 2) To
detail  the  responsibilities  of each party, and 3) To describe the division of
equity that is produced.  As a result of these operations, a Joint Venture shall
be  formed  for the express purpose of executing the goals and objectives of the
parties.

                                    SECTION 1
                                THE RELATIONSHIP

 1.1    The  relationship  between  these parties is designed to create a united
effort  to  profitably  identify, drill and produce crude oil from oil producing
properties in various oil producing states and to utilize each parties' talents,
expertise,  and  resources  to build a strong business enterprise.  Both parties
will  participate in the organization and structure of the corporation that will
be  formed.  The  parties  will also participate in the management of this newly
formed  Company.

                                    SECTION 2
                           RESPONSIBILITIES OF ENCORE

2.1     Encore  shall  be  responsible  for  providing  the  capital  for  the
acquisition  and  improvement  of the initial oil leases, and shall share in the
management  and  administrative  duties  of  the  Company.

                                    SECTION 3
                            RESPONSIBILITIES OF USCR

3.1     USCR  shall  be  responsible  for providing assistance with locating the
initial  property,  shall  share  in  the  management  and  administrative
responsibilities, and shall perform all work necessary to manage and operate the
oil  leases.  Such  work,  though not herein specifically defined, shall include
daily  maintenance  and  operational  activities  to  ensure that the leases are
functioning  properly  and  producing oil, and running any enhanced oil recovery
operations  deemed  appropriate,  including  steaming.

                                    SECTION 4
                             JOINT RESPONSIBILITIES

4.1     The  parties  will  mutually  agree  upon  the properties selected.  The
parties  will  also  equally  share the cost of drilling any wells, refurbishing
wells,  and  major capital improvements associated with improving the properties
including,  but  not  limited  to,  behind  the  pipe  work,  refracturing, etc.

                                    SECTION 5
                                   THE COMPANY

5.1     The Parties agree to form a Company for the express purpose of executing
the  goals and aspirations of the parties.  The name of the new company shall be
Crude Oil Recovery, and shall be owned by the parties according to the following
formula:  51% owned by Encore, 49% owned by USCR.  Should either party decide to
sell  any  or  all  of their interest in the Company, they must first notify the
other  party  before  offering  it to the general public. Such other party shall
have  five  (5)  business  days  to  match  any  offer  to  purchase.

<PAGE>

                                    SECTION 6
                              DIVISION OF REVENUES

6.1     All  revenue  produced from the operation of Crude Oil Recovery shall be
divided  according  to ownership percentage, namely, 51% going to Encore and 49%
going  to  USCR.  During  the  initial  operations  of the Company, all revenues
generated  by  the joint venture shall be reinvested back into oil production to
effect leasehold improvements, acquire additional leases, etc.  No distributions
of  revenues  shall  be made without the mutual written consent of both Parties.

     This  agreement  constitutes  the  entire understanding between the parties
with  respect  to the subject mater hereof and supersedes all negotiations prior
to  the  execution  hereof,  and  all  preliminary agreements or understandings,
written  or  oral.  No waiver or modification of this agreement shall be binding
unless  it  is  in  writing,  signed  by  both  parties.

In  witness  hereof, the Parties have caused this agreement to be executed as of
the  date  of  this  letter.

U.S.  CRUDE  LTD.,  by                            ENCORE  PRODUCTIONS,  by

/s/Anthony K. Miller                              /s/Paul Blacharski
--------------------                              ------------------
Anthony  K.  Miller                               Paul  Blacharski

<PAGE>Exhibit  4.1     Advisory  and  Consulting  Agreement

                    Number  of  Shares  and  Options
                    --------------------------------

     4.1(a)                     4,800,000

     4.1(b)                       200,000

     Miscellaneous                200,000Exhibit 4.1(a)

                               CONSULTING AGREEMENT

     AGREEMENT,  effective  as  of  the  2nd day of March, 2002, between Aquatic
Cellulose  International  Corporation,  a Nevada Corporation (the "Company"), of
3704  32nd Street, Vernon BC, VIT 5N6, and R.D. Smith (the "Consultant"), of 575
Mucheon  Ave.,  10th  Floor,  New  York,  New  York.

     WHEREAS,  THE Company desires the Consultant to provide consulting services
to  the  Company  pursuant  hereto and Consultant is agreeable to providing such
services.

     NOW THEREFORE, in consideration of the premises and the mutual promises set
forth  herein,  the  parties  hereto  agree  as  follows:

1.     Consultant  shall  serve  as  a  consultant  to  the  Company  on general
corporate  matters,  particularly  related  to  shareholder relations, and other
projects  as  may  be  assigned  by  Gary Ackles, Chief Executive Officer of the
Company  on  an  as  needed  basis.

2.     The  Company  shall  be  entitled to Consultant's services for reasonable
times  when  and to the extent requested by, and subject to the direction of Mr.
Ackles.

3.     Reasonable  travel  and other expenses necessarily incurred by Consultant
to  render  such  services,  and  approved  in  advance by the Company, shall be
reimbursed  by the Company promptly upon receipt of proper statements, including
appropriate  documentation,  with  regard  to  the  nature  and  amount of those
expenses.  Those statements shall be furnished to the Company monthly at the end
of  each  calendar month in the Consulting Period during which any such expenses
are  incurred.  Company  shall pay expenses within fifteen (15) business days of
the  receipt  of  a  request  with  appropriate  documentation.

4.     In  consideration  for  the  services  to be performed by Consultant, the
Consultant will receive options to purchase four million, eight hundred thousand
(4,800,000)  shares  of  the common stock of the Company at an exercise price of
five  cents  ($0.05)  per  share.

5.     It  is  the  express  intention  of the parties that the Consultant is an
independent  contractor and not an employee or agent of the Company.  Nothing in
this agreement shall be interpreted or construed as creating or establishing the
relationship  of  employer  and employee between the Consultant and the Company.
Both  parties  acknowledge  that  the Consultant is not an employee for state or
federal tax purposes.  The Consultant shall retain the right to perform services
for  others  during  the  term  of  this  agreement.

6.     Neither this agreement nor any duties or obligations under this agreement
may  be  assigned  by  the  Consultant  without the prior written consent of the
Company.

7.     This  agreement  may  be  terminated upon ten (10) days written notice by
either  the  Company  or  the  Consultant.

8.     Any  notices  to  be  given hereunder by either party to the other may be
given  either  by  personal  delivery  in  writing  or  by  mail,  registered or
certified,  postage prepaid with return receipt requested.  Mailed notices shall
be  addressed  to  the  parties  at  the addressed appearing in the introductory
paragraph  of  this  agreement, but each party may change the address by written
notice  in  accordance with the paragraph.  Notices delivered personally will be
deemed  communicated  as  of  actual  receipt;  mailed  notices  will  be deemed
communicated  as  of  two  days  after  mailing.

9.     This agreement supersedes any and all agreements, either oral or written,
between  the  parties  hereto  with  respect to the rendering of services by the
Consultant for the Company and contains all the covenants and agreements between
the  parties  with  respect  to  the  rendering  of  such services in any manner
whatsoever.  Each  party to this agreement acknowledges that no representations,
inducements, promises, or agreements, orally or otherwise, have been made by any
party,  or  anyone acting on behalf of any party, which are not embodied herein,
and  that  no  other  agreement,  statement,  or  promise  not contained in this
agreement shall be valid or binding.  Any modification of this agreement will be
effective  only  if  it  is  in  writing  signed  by  the  party  to be charged.

10.     This  agreement will be governed by and construed in accordance with the
laws  of  the  State  of  California,  without  regard  to its conflicts of laws
provisions;  and  the  parties agree that the proper venue for the resolution of
any  disputes  hereunder  shall  be  Orange  County,  California.

11.     For  purposes  of  this  Agreement,  Intellectual Property will mean (i)
works,  ideas,  discoveries,  or  inventions  eligible for copyright, trademark,
patent  or  trade secret protection; and (ii) any applications for trademarks or
patents, issued trademarks or patents, or copyright registrations regarding such
items.  Any  items  of  Intellectual  Property  discovered  or  developed by the
Consultant  (or  the  Consultant's  employees) during the term of this Agreement
will  be  the  property  of the Consultant, subject to the irrevocable right and
license  of  the Company to make, use or sell products and services derived from
or  incorporating  any  such Intellectual Property without payment of royalties.
Such rights and license will be exclusive during the term of this Agreement, and
any  extensions  or  renewals  of it.  After termination of this Agreement, such
rights  and  license  will  be  nonexclusive,  but  will  remain  royalty-free.
Notwithstanding  the  preceding, the textual and/or graphic content of materials
created by the Consultant under this Agreement (as opposed to the form or format
of  such  materials) will be, and hereby are, deemed to be "works made for hire"
and will be the exclusive property of the Company.  Each party agrees to execute
such  documents as may be necessary to perfect and preserve the rights of either
party  with  respect  to  such  Intellectual  Property.

12.     The  written,  printed,  graphic,  or  electronically recorded materials
furnished  by  the Company for use by the Consultant are Proprietary Information
and  are  the property of the Company.  Proprietary Information includes, but is
not  limited  to,  product  specifications  and/or designs, pricing information,
specific  customer  requirements,  customer  and  potential  customer lists, and
information  on  Company's employees, agent, or divisions.  The Consultant shall
maintain  in  confidence and shall not, directly or indirectly, disclose or use,
either  during or after the term of this agreement, any Proprietary Information,
confidential  information,  or know-how belonging to the Company, whether or not
is  in  written  form,  except to the extent necessary to perform services under
this  agreement.  On termination of the Consultant's services to the Company, or
at  the  request of the Company before termination, the Consultant shall deliver
to  the  Company  all  material  in  the Consultant's possession relating to the
Company's  business.

13.     The  obligations regarding Proprietary Information extend to information
belonging  to  customers and suppliers of the Company about which the Consultant
may  have  gained  knowledge  as  a  result  of  performing  services hereunder.

14.     The  Consultant  shall  not, during the term of this agreement and for a
period  of  one year immediately after the termination of this agreement, or any
extension of it, either directly or indirectly (a) for purposes competitive with
the  products or services currently offered by the Company, call on, solicit, or
take  away  any of the Company's customers or potential customers about whom the
Consultant  became aware as a result of the Consultant's services to the Company
hereunder,  either  for the Consultant or for any other person or entity, or (b)
solicit  or  take  away  or attempt to solicit or take away any of the Company's
employees  or  consultants  either for the Consultant or for any other person or
entity.

15.     The  Company will indemnify and hold harmless Consultant from any claims
or  damages  related  to  statements  prepared by or made by Consultant that are
either  approved  in  advance  by  the  Company or entirely based on information
provided  by  the  Company.

Consultant:                    Company:
R.D.  Smith                    Aquatic  Cellulose  International

/s/  R.  D.  Smith                    /s/  Gary  Ackles
______________________                By:______________________
                                      Gary  Ackles
                                      Chief  Executive  Officer

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