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t 4' 6 6 dissolved phase hydrocarbons, traversing the barrier with average groundwater flow velocities. Further research sanctioned by regulatory authorities is now required to bring this technology to its full potential. 4. Cost Regenesis has prepared detailed cost evaluations of oxygen barrier technology and competitive technologies. These are presented as Exhibit 5. S. Regulatory Contacts and Satisfied Customers Overall, there has been a favorable reception to the concept of time release oxygen, which has been discussed by Regenesis with a wide range of environmental professionals. Ultimately, this is of limited value until the technology is put to the test and its abilities and limitations are defined. As Regenesis emerges from its R and D phase it will be in a position to cultivate a customer base that will then form an opinion. As we are in the very beginnings of field R and D, contact with regulators has been extremely limited. Consequently, there is nothing to offer in these inquiry areas at this time. It should be noted, however, that we received an unsolicited call from a regulator in New Mexico who read the GWMR publication and felt that oxygen barriers would be appropriate for a site owner in her area (Susan Hoines, UST Division, Santa Fe). We have also spoken to engineering firms, contacting us with inquiries, who either 1) stated that a regulator heard . about our technology and advised them to investigate it (Patty De La 0, Brown and Caldwell, Sacramento, CA) or 2) that they had discussed the principles with a regulator who gave it conceptual support subject to further information (Tim Buelow, Terracon Environmental, Des Moines, IA). 6. Limitations The major limitation of the technology is that the amount of oxygen it can deliver can be sub--optimal for a given remediation problem. For example, if free product is present, the ORC will be ineffective. Consequently, as the company develops its design manual, these limitations will be clearly specified. Similarly, the product would be contraindicated in environments that are heavily laden with iron and other metals that could create a large chemical oxygen demand. All of these factors have to be taken together, such that all biological and chemical oxidation demand is within the range of efficacy for ORC._ Any further inquiries regarding the above facts, or any other issues, should be directed to Dr. Stephen Koenigsberg, Director of Research, Regenesis Bioremediation Products.