INVESTMENTS PETER O'DONNELL, JR. 3366 INTERFIRST ONE DALLAS, TEXAS 75202-2943 June 16, 1986 W. Arthur Porter President HARC 2202 Timberloch Place, Suite 200 The Woodlands, Texas 77380 Dear Skip: Thank you for sending me a copy of the draft case statement for the Energy Research Corporation. I have two recommendations to make: 1) I would like to see the energy research effort modeled after MCC rather than being tied too tightly to HARC at the beginning. You will recall that MCC first had a ramrod, Bill Norris. He got the companies and the money committed. They selected a CEO and then began their site selection process. As an institution, HARC today is probably too young to have the strength to attract the support needed. 2) The case statement should show the potential of enhanced energy recovery. Thirty-nine percent of the oil discovered in Texas is potentially producible, but not with our present technology: mobil oil discovered to date 90 billion barrels mobil oil already produced 47 billion barrels recoverable reserves 8 billion barrels potentially producible oil 35 billion barrels in Texas This data is from an article in the June 2 Oil and Gas Journal, written by William L. Fisher and Robert J. Finley of the Bureau of Economic Geology at the University of Texas at Austin. I enclose a copy for your information. There are a number of good features to your plan which I think should remain in future drafts. With best wishes. PODjr:cb Enclosure I i 1 19FE Sincerely yours, Peter O'Donnell, Jr.