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Author John M Jeapes

Confidential

Page 1

02/10/2011

Mitigating the effects of Drought using Pongamia shelterbelts in Texas

Drought is a special type of disaster because its occurrence does not require evacuation of an area, nor does it constitute an immediate threat to life or property. People are not suddenly rendered homeless or without food and clothing. The basic effect of a drought is economic hardship, but it does, in the end, resemble other types of disasters in that victims can be deprived of their livelihoods and communities can suffer economic decline. Ranchers in some parts of Texas are selling off their herds, because the once-fertile grasslands that feed them are gone. Three-quarters of Texas is in extreme or exceptional drought. Lubbock has had less than an inch of rain this year. Houston has had just over an inch-and-a-half in three months, about the same as the Sahara desert. Wildfires are ravaging the tinder dry landscape, scorching more than two million acres since January, and to make matters worse, this is typically the Texas rainy season. "We should be seeing rainfall, so if we don't get rainfall in the next several months, the impact is going to be devastating," said Victor Murphy, meteorologist at the National Weather Service. For thousands of ranchers across Texas, the only choice is to sell their herds or go broke trying to feed them although the drought in cattle country could actually bring a short-term benefit to consumers. Beef prices have been running at near record highs, but with so many ranchers now forced to sell off their herds, the price of beef is expected to drop.
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 2

02/10/2011

Already auction prices in Texas have fallen 15 cents from 80 to 65 cents per pound and could continue down through summer. But with the U.S. cattle population already at a 50-year low, lower prices won't last. Preliminary estimates of Texas drought losses have reached $1.2 billion and are expected to escalate higher this year as livestock producers continue to sell off herds and crop conditions deteriorate, according to economists with the Texas AgriLife Extension Service. Victor Murphy, who manages the National Weather Service's Southern Region Climate Services Program, said that last month marked the driest March recorded in Texas since record-keeping began 117 years ago, and it was the third-driest March on record in New Mexico, and the 10th-driest seen in Oklahoma. The wildfires now scorching Texas may be the most visible side-effect of the drought. As of yesterday, the state's Forest Service was struggling to contain four major fires that covered more than half a million acres. But Murphy said stream flow, soil moisture and groundwater supplies are also below normal in several Southern states, including Texas, despite a generally wet summer in 2010. Economists disagree about the precise figures, with the estimates varying by billions, but most agree that the ongoing Texas drought, which began in November and has caused more than 10,000 wildfires across the state, will cost between $1.5 billion and $3 billion in crop and cattle losses alone. Drought is a complex physical and social process of widespread significance. Although drought sometimes affects the entire State, due to the varying climatic conditions within the State, it frequently is just a regional problem. Despite the frequency and economic damage caused by drought, the term drought remains difficult to define, and there are no universally accepted parameters because Drought, unlike floods, is not a distinct event, in that it has no clearly defined beginning or end, thereby complicating attempts to define it. The definition of drought varies with its impact on individuals, thus influencing the perception of drought depends upon whom it affects, and how they are affected. While the effects of drought on the environment cannot be avoided, in many cases the adverse effects caused by human intervention in drought prone areas, can be reversed. The impacts of drought on the State of Texas are many and varied, and drought can affect a wide range of economic, environmental, and social concerns. The relative vulnerability, or risk exposure, of these activities to the effects of drought, usually depends on the types of water demands.

How these demands are met, and the corresponding water supplies
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 3

02/10/2011

available to meet future demands, requires action today. Tomorrow may be too late because those human, and natural resource activities which depend solely on rainfall and soil moisture, such as dry-land farming, ranching, and some environmental water uses, are most at risk from drought. Unfortunately these activities can suffer discernible effects, even with droughts of short duration. Also at relatively high risk, but somewhat less exposed, are the systems that depend upon stream flows, such as run-of-the-river irrigation, aquatic, wetland, riparian environmental communities and recreational water uses. This document is an initiative by The Abundant Biofuels Corporation to develop and promote the growing of Pongamia to assist in the restoration and reclamation of drought affected habitats on both private and public land in Texas. Our goal is:

1. 2.

To conduct and facilitate research to improve land management, to reduce the impact of extreme events such as drought, and To meet the needs of adapting to short-term, or long-term measures to combat climate changes and weather variations.

We propose to do this by providing an economically viable source of Pongamia plants, and seeds, to both the private and public sector for the establishment of Shelterbelt Enclosures. Once established, these enclosures will assist the restoration of native plant communities, and provide increased yield, by restoring fertility to degraded land. Productivity and income in agriculture is heavily influenced by climatic conditions. So any changes in temperature, precipitation, water flows and atmospheric content has a mixture of both positive and negative implications for plant growth, livestock performance and water supply, as well as for soil characteristics, pests and diseases. Thus, given the possible incidence of global climate change, the agricultural industry in Texas is likely to face changing conditions, and may be at risk for many years ahead. Any estimation of the effects of climatic change on agriculture is difficult to assess. Agricultural production is influenced in numerous ways by the forces which cause climate change, as well as by the altered climate attributes. Habitat deterioration however, is generally caused by human and/or animal activity, but it can be augmented by external stresses such as droughts and the disruption of natural fire patterns.

For example, altered water cycles have resulted in major ecosystem


This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 4

02/10/2011

dysfunctions on some parts of the semi-arid Texas rangelands and overgrazing during the past 250 years, combined with a reduction in naturally occurring fires and frequent droughts, have disrupted the ecological processes of nutrient cycling, energy flow, plant community dynamics, and in particular, hydrologic processes. Changes in soil fertility, increased erosion and compaction, have all contribute to decreased water infiltration and increased run-off, resulting in lower vegetation diversity, reduced surface coverage, and lower productivity. Over time, plant species may lose vigour and die, and as herbaceous biomass decreases, the bare ground increases and the ecological processes of water, nutrient, and energy cycling are disrupted. This results in lost capacity and the plant community is unable to maintain itself, so further deterioration occurs. Once the original native plant communities have been severely disturbed, and the stable processes have been upset, invader plants soon become established. Consequently, the plant community cannot easily, or economically, be restored to its original state. The drivers that lead to these effects on agriculture can be grouped into five categories: Temperature - Which affects plants, animals, pests and water supplies. For example, temperature alterations directly affect crop growth rates, livestock performance and appetite, pest incidence and water supplies in soil and reservoirs among other influences. Precipitation - Which alters: a. The water directly available to crops, b. The stress crops are placed under in drought conditions, c. The supply of forage for animals, animal production conditions, d. The irrigation water supplies, and e. River flows supporting barge transport, among other items. Changes in atmospheric CO2, influences: f. The growth of plants by altering the basic fuel for photosynthesis, as well as, g. The water that plants need as they grow, along with the growth rates of weeds. Extreme events influence production conditions such as water supplies, waterborne transport, and ports. Sea level rise influences ports and waterborne transport but it can also inundate productive land. For more than 20 years, Texas has been actively involved in efforts to
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 5

02/10/2011

combat dry-land degradation. State-wide its a pretty grim picture, said Travis Miller, AgriLife Extension program leader, and its not just Texas; its New Mexico, Oklahoma, Louisiana, and parts of Arkansas. Its an exceptional drought across a big area. Corn along the Gulf Coast is stunted and tasselling early, Miller said. Its in a lot trouble. Were seeing leaves twisting from heat/moisture stress by midday, and much of the Texas wheat crop has failed as well. Probably in the order of 50 to 60 percent of the wheat crop wont be harvested, but from a national standpoint, Texas is a minor player in feed grains. But Texas typically plants about half the cotton acreage in the U.S., so a large-scale crop failure there could have an impact on prices. Cotton is typically planted later than corn, and cotton growers ran into dry soil conditions as the planting window opened. As a result, Miller said, a very small percentage of the total cotton crop, under 20 percent, has been planted to date. The High Plains is right in the middle of their planting season, they normally plant up to the first week of June. The dry-land farmers are waiting for rain. The irrigated farmers have spent a lot of money and pumped a lot of water, and were seeing some planting in irrigated conditions. But the process of assisting the recovery of the Texas ecosystem, once it has been degraded, damaged, or destroyed, is a holistic process. This not only involves revegetation, but may also entail the removal of non-native species, the reintroduction of soil biota, (such as invertebrates, insects, and fungi), and the implementation of management strategies that will help the system function in a healthy manner. There can be little doubt that species-rich plant communities are more resistant to drought than species-poor plant communities, an important attribute in semi-arid habitats. Resilience, or the rate of return to pre-drought conditions, is also greater in species-rich communities because species-rich communities are commonly more biologically productive than species-poor communities. Increasing stability and water infiltration in the soil surface, initiates repair and maintenance of the damaged processes that enhance plant production, and also protects the soil surface with plants, grass or living vegetation, but drought remains the biggest environmental problem impeding dry-land development. Although there have been many projects and community-based initiatives, that have successfully addressed the problem. Policymakers, administrators, staff, and beneficiaries of programmes to combat or prevent land degradation, need to draw lessons and learn from successful intervention programmes. Either from within their own territories, or from elsewhere, in order to replicate or transfer them, taking into consideration of course their national, local and cultural settings, in order to ensure that they will remain successful.

This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 6

02/10/2011

National, local and cultural differences, as well as changing circumstances among stakeholders, may make it difficult to replicate, or directly transfer, successful intervention programmes into new settings, without proper adjustments. Climate projection is inherently more difficult for a small sub-area of the globe, than for the globe as a whole. This is particularly true for Texas, the nature of whose climate changes throughout the year. Much of Texas can be described as arid land, occasionally punctuated by floods caused by hurricanes or Gulf Coast moisture but rainfall patterns are unpredictable, and drought cycles can last for several years, with rainfall averages as low as several inches per year. Under most normal circumstances, Texas can expect two rainfall peaks, which generally occur during May/June and September/October. But planning for water needs, under the current drought conditions, is anything but easy. Water demands by municipalities, industries, and agricultural irrigators continue to escalate as the population increases. The amount of water needed in rivers, streams, and coastal bays to support fish and wildlife habitat is also an important issue. Many local economies depend on these flows to provide income through fishing, hunting, and tourism. The wide range of weather conditions that have already had significant impacts on Texas further complicates matters. Partially, because of this complexity, climate variations over the past century in Texas do not correspond to the climate change expected from global warming, according to present day climate change models. Local temperature changes due entirely to global warming, may, by the middle of this century, become strong enough to overwhelm the natural variability. This may lead to average temperatures of 4F warmer than those recorded in recent decades. In the case of precipitation, observed variations over the past century are already larger than most climate change projections forecast for precipitation change by mid-century, and this is also unexplained. Thus, it cannot be said with any certainty that future precipitation will be more, or less, than the present-day precipitation in Texas. Rangeland degradation may be defined as the loss of utility or potential utility or the reduction, loss, or change of features of rangeland ecosystem, which cannot be replaced. In general, Texas rangeland degradation implies a reduction in the value of the land or its agricultural status. Rangeland degradation includes a loss of top-soil, a change to a simple floral/fauna composition, or a transition from one organic form to a lower organic form, and a continuous reduction of productivity/biomass of the ecosystem. Generally speaking, lower biological diversity exists today in degraded Texas rangeland, but there is still much research work to be done on this issue.
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 7

02/10/2011

Looking at just the ecology, degradation can be treated as a retrogression of an ecosystem, and the recovery of degraded rangeland as secondary succession. The difference between degradation and fluctuation can be found in their temporal scales and resilience, but once rangeland has started to degrade, it is possible to rehabilitate most of it, and thus restore it to a level of utility if one acts fast enough. Possibly not as good as its original state, but better than it was in its damaged state. However, being able to run more cattle per acre is just one benefit. By actively planning and managing the grazing, and the recovery of the plants, as opposed to allowing continuous grazing, ruminants become part of the solution rather than a burden to the land. The dynamic is as follows: the animal chews the grass which stimulates plant and root growth, and allows sunlight to get through to the growth points. Then move the herd on, (in a leisurely way), to find fresher grass, or (with a pounding of hooves) to elude a predator. When domestic livestock are managed to replicate this behaviour on degraded lands, the grasses come back: the deep-rooted plants enrich and aerate the soil and the hoof movements chip away at hardened earth so that seeds can germinate and grow and water can penetrate. Rich, aerated soil is productive, it retains water, and, highly significant in environmental terms, is a carbon sink. Healthy grasslands represent the ecosystem with the highest potential for carbon sequestration of any on the planet, and grasslands cover more than 45% of the U.S. This has important implications for reducing atmospheric CO2. Plus, soil carbon plays a vital role in sustaining water supplies, which are perilously threatened in much of the West. Every one percent increase in soil carbon holds an additional 60,000 gallons of water per acre, water which infiltrates the ground and replenishes groundwater sources and springs reappear. This paper seeks to raise awareness that land degradation in Texas, as a result of drought, can be prevented, and in some cases reversed. The author has documented, evaluated, and disseminated information on projects that have succeeded in the global battle against land degradation, and desertification. This Texas initiative reiterates the recommendation of sustainable development through community participation, exploitation of knowledge, capacity building, awareness raising and replication of the practices that have been judged best for achieving these goals. This initiative also aims to foster the communities confidence in their own abilities to solve land-management problems, and to encourage them to take responsibility for the local environment. But to be considered as a success story, any project must be judged on its ability to contribute directly and substantially to the prevention of land degradation, or to the rehabilitation of degraded land.
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 8

02/10/2011

It should also address both biophysical and socio-culturaleconomic issues, involve local communities at all stages, have the potential for replicability under similar environmental and socio-economic conditions, and be sustainable in the long term. EXECUTIVE SUMMARY Today, the worst Texas drought in 44 years is not only damaging the states wheat crop, it is forcing ranchers to reduce cattle herds, creating rising demands for U.S. food, and sending grain and meat prices higher. Texas, the biggest U.S. cattle producer, and second-largest winter-wheat grower, got just 4.7 inches of rain on average in the five months through February, the least for the period since 1967. State Climatologist John Nielsen- Gammon said that more than half the wheat fields and pastures were rated as poor or very poor condition when assessed on March 20 this year. Dry conditions, extending to Oklahoma, Kansas and Colorado, may cut crop yields in the U.S., the worlds largest exporter, just as much as too much moisture threatens the fields in North Dakota and in Canada. This, after drought in Russia, and floods in Australia, will hurt output, and sent global food prices surging. Wheat futures in Chicago are up 50 percent in the past year, wholesale beef reached a record this week, and the U.S. cattle herd in January was the smallest since 1958. Were probably already seeing some damage, but in the next couple of weeks, well surely go downhill major if we dont get some rain, said David Cleavinger, who is irrigating 75 percent of his 1,000 acres (405 hectares) of wheat in Wildorado, Texas. With the prices were seeing, were trying to hold on, but theres nothing that takes the place of a rainstorm. Cleavinger, 53, has a 3,500-acre farm that includes corn and cotton. Drought is one of most serious environmental and social-economic problems in Texas, which has been suffering for a long time. As a result it has brought about environmental deterioration, and land degradation, which have resulted in heavy losses to much of the farming economy. Things are so serious that surely, now must be the right time to consider projects which may combat the effects of drought. According to research into farming practices over the last 20 years, land degradation is the result of interaction between excessive human activities, and a vulnerable environment. Of course the causes leading to land degradation and varied, but there are two important factors which can be recognized. What we call the natural factor and human factor.

This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 9

02/10/2011

The combination of these two factors is one of the major causes of land degradation, but the human factor is more important than the natural one. It is possible to combat land degradation in Texas, but only if we can manage the human impacts in the process, because we can do very little to change the natural impacts. During the last five decades, the amount of degradated land in Texas has expanded. But the methods used to combat land degradation have improved over time, and some degradated land has been recovered, and it can now be used once again for farming, or as grassland. However, despite these measures, the amount of degradated land has actually increased, although the increased amount is rather low when compared with the expanded areas. Only in about 10% of degraded land have the current measures illustrated that land degradation can be controlled. What Texas needs is the confidence to seek out new ideas and methods, and then take the appropriate action. Based on personal research, and on the established practice of combating land degradation, the information to hand suggests that the overall strategic method for sustainable development should follow the guiding principle of, taking prevention first. Attention should be paid, not only to the recovery of the existing degradated land, but even more importantly, to the prevention of even more land degradation. So adopting preventative actions to protect degraded pastureland, and light soil eroded land, means voluntarily enforcing supervision and monitoring activities, to minimize land degradation resulting from irrational human activities. Using key affected areas as a basis to promote work in the entire area, such as undertaking comprehensive management, and promoting recovery work from the nursery unit to large areas. For combating wind erosion and induced land degradation, steps should be taken to promote the establishment of shelterbelts in different locations, and, step by step, increase the area involved. Combating land degradation should be closely combined with economic development, and development should be used to promote combating land degradation. For instance, according to the local eco-environmental features favourable, either for combating land degradation, or favourable for economic development, the principle of "protective tree planting, commercial animal husbandry and self-sufficient farming" should be suggested for the farming areas experiencing the worst drought.

This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 10

02/10/2011

Harmonized ecological benefits with social and economic benefits. When the three benefits are in inconsistency, the need of ecological benefits should be satisfied first, because it concerns not only the overall long-term benefits, but also the sustainable development of the degradated area. The immediate economic benefits should not be taken into account at the expense of long term environmental benefits. During the process of large-scale afforestation, and of the reclamation of degraded areas for food production, attention should be paid to the methods used to prevent the environmental deterioration of the ground water table. In Texas, unpredictable rainfall is a serious challenge, and while some variability is easy to work around, long-term droughts seriously impact restoration efforts by killing newly planted seedlings, or transplanted plants. Keeping in mind that rainfall varies, even within the region, and restoration techniques that work well along the Gulf Coast may not produce results further inland, realistically, even the best restoration projects will not duplicate the diversity and plant species composition of the original native plant communities. Most of these communities will require hundreds, if not thousands, of years to reach their present composition and structure. However, once damaged, their restoration will require some time before they can function independently. For these reasons, it is important to protect any remaining trees in Texas. Although this project suggests that farmers and landowners in Texas should consider using Pongamia shelterbelts to protect, and help to convert the land back into productive agricultural land, so enhancing the States food-production capacity, and the creation of new employment opportunities. It has been tried before. In response to the devastating droughts of the 1930s, on July 21, 1934, Pres. Franklin D. Roosevelt instructed the U.S. Forest Service to initiate the Prairie States Forestry Project. The project's mandate was to plant shelterbelts in six Great Plains states to protect crops and wildlife from wind, intercept blowing snow and sand, and provide wood products. Roosevelt secured the funds by executive order through the Works Progress Administration (WPA). The Forest Service located the project headquarters in Lincoln, Nebraska, and Oklahoma City was the project headquarters for Oklahoma, with district offices in Elk City, El Reno, Mangum, and Enid. The original project counties were Beckham, Custer, Dewey, Ellis, Greer, Harmon, Harper, Jackson, Major, Roger Mills, Washita, Woods, and Woodward, but by 1939 the project added Beaver, Blaine, Caddo, Canadian, Comanche, Garfield, Kay, Kingfisher, and Noble. On March 18, 1935, the program's first shelterbelt was planted on the H. E. Curtis farm near Mangum.

This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 11

02/10/2011

Each project was a cooperative venture between the farmer, and the federal government. Farmers desiring a shelterbelt made application, after which sites were evaluated for suitability. If admitted to the program, the cooperating farmer agreed to furnish land and fencing material, prepare the site for planting, cultivate the trees, and control rodents. Cultivation reduced competition from weeds and grasses, until the trees were able to shade them out. The federal government used WPA crews to build fences, plant trees, and provide technical advice and materials for rodent control. The shelterbelts varied in length, ranged from 100 to 165 feet wide. Rows were planted ten feet apart, with tall trees in the centre, flanked by rows of short trees along the sides, and shrubs in the outside rows. Black locust, catalpa, Chinese elm, cottonwood, green ash, hackberry, honey locust, mulberry, Osage orange, pecan, plum, Russian olive, red cedar, and walnut were planted. But the maximum protection was afforded by the trees which reached twelve to twenty feet in height. Some shelterbelts failed, and the land was subsequently ploughed up by farmers. Failure resulted from drought, grasshopper infestations, and improper cultivation. In 1935 the tree survival was 71.5 percent and in 1936, 73.5 percent, but when the maintenance was turned over to the farmers in 1937, survival rates dropped to 62 percent and to 61.3 percent in the following year. However, despite this, when the project closed on June 30, 1942, 145 million trees had been planted in 18,600 miles of shelterbelts in a one-hundred-mile-wide zone from Canada to the Brazos River. I believe we should now encourage farmers and landowners in Texas to once again establish shelterbelt enclosures on their land using the Pongamia tree, but with minimum input by the government. Government support should be limited to technical advice through an extension programme, and the supply of planting materials. Why Pongamia? Scientists studying global climate change recognize the importance of vegetation in removing carbon dioxide from the atmosphere, and in local cooling through transpiration, but they have always assumed that plants and trees first suck the water out of the soil before spewing water vapour back into the atmosphere. A new study by Todd Dawson, professor of integrative biology at UC Berkeley, shows that Pongamia trees use water in a much more complex way. Their long tap roots transfer rainwater from the surface to reservoirs deep underground, and later they redistribute the water upwards after the rains, to keep the top soil layers moist, thereby accentuating both carbon uptake and localized atmospheric cooling during dry periods.
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 12

02/10/2011

This effect, which is called transpiration, increases photosynthesis and the evaporation of water from plants by 40 percent in the dry season when photosynthesis would otherwise be limited. This shifting of water by roots has a physiological effect on the plants, letting them pull more carbon dioxide from the atmosphere as they conduct more photosynthesis," said professor Dawson. "Evapotranspiration stays higher than previously expected during the prolonged dry season, because of the underground reserve of water banked during the wet season by the tap roots, just as perspiration cools us off. Increased transpiration by trees in June and July probably explains why temperatures drop in the Amazon." This effect changes the way the atmosphere heats and cools, and it will, over time, change the way rain is distributed, professor Dawson noted. Depending on the extent to which trees redistribute water in the soil, the impact on global climate could be significant. Trees have long been known to lift water from the soil to great heights, using a principle called hydraulic lift, with energy supplied by the evaporation of water from leaf openings called stomata. However, twenty years ago, some small plants were found to do more than lift water from the soil to the leaves - they also lifted water from deep underground using their tap roots and deposited it in shallow soil for use at a later time. They reversed the process during the rainy season by pushing water into storage, deep underground. In 1990, Dawson discovered that Pongamia trees do this most efficiently using their 13m long tap roots, and to date, this so-called hydraulic redistribution has been found in more than 60 separate deep rooted plant species. Earlier this year, Dawson discovered that Pongamia trees, amongst others, use hydraulic redistribution to maintain the moisture around their shallow roots during long dry seasons. During the wet season, these plants can store as much as 10 percent of the annual precipitation as deep as 13 meters (43 feet) underground, to be tapped during the dry months. "These trees are using their root system to redistribute water into different soil compartments," Dawson said. "This allows the trees to sustain water use throughout the dry season." The process is a passive one, he noted, driven by chemical potential gradients, with deep tree roots acting like pipes to allow water to shift around much faster than it could otherwise percolate through the soil. In many plants that exhibit hydraulic redistribution, the tap roots are like the part of an iceberg below water. In some cases these roots can reach down more than 100 times the height of the plant above ground. Such deep roots only make sense if their purpose is to redistribute water during the dry season for use by the plant's shallow roots.

This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 13

02/10/2011

Dawson suspects that the real reason for keeping the surface soil moist is to make it easier for the plant to take in nutrients. The increased moisture in the soil created by hydraulic redistribution during the dry season, allows the Pongamia to carry on photosynthesis at a higher rate, leading to greater carbon uptake. This also leads to greater evaporation of water from the leaves, which takes heat with it. Thus, the summer dry-season temperatures in a Pongamia plantation are cooler than would otherwise be expected. Drought is one of most serious environmental and social-economic problems in Texas, which has been suffering for a long time. But any climatic change from shelterbelt protection would of course be local, rather than regional. Whilst it is true that no one has yet proven that tree planting and cultivation increases precipitation, and that the theory is at best "problematical," trees do help to control the environment. They do this by modifying the extremes of heat and cold, and by preventing the evaporation of moisture from the soil.

The effect of growing Pongamia species on arid zone soils


Introduction Millettia Pinnata is a species of tree in the pea family Fabaceae. Native to tropical and temperate Asia, including parts of India, China, Japan, Malaysia, Australia and Pacific islands, it is often known by the synonym Pongamia, but it was moved to the genus Millettia only recently. The pea family Fabaceae contains around 45 species of trees and shrubs found in subtropical and tropical regions of the Americas, Africa, Western Asia, and South Asia. Not only do they thrive in arid soil but they are also resistant to drought, some developing extremely deep root systems. Their wood is usually hard, dense and durable. Their fruits are pods which may contain large amounts of oil or sugar. Pongamia tree vegetation, during the course of its establishment, initiates a series of changes in ecological and soil physico-chemical characteristics. These changes are dependent upon the type of vegetation, the rooting pattern, canopy architecture, type and quantity of litter fall. Also, the nitrogen fixing ability of arboreal vegetation has a great influence on the fertility and moisture status of the soil. Nair (1984, 1987) documented the effects of trees on soils in different parts of the world, and he showed that different mechanisms operate in assessing the role of trees in soil productivity. The magnitude of the beneficial, or the adverse, effects that could be experienced will depend upon a number of site specific factors. Moreover, many of the attributes of trees, as compared with annual crops, can only be realised over long periods of time.

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This paper summarises the possible beneficial effects of Pongamia species on soil productivity parameters in the arid ecosystems of Southern Texas. Amelioration of soil fertility One of the advantages commonly attributed to shelterbelts in agro forestry is the potential for soil fertility improvement through more efficient cycling of nutrients, a better soil moisture regime and a higher activity of soil micro-organisms. In general, in arid and semi-arid lands, improvement in inherent soil fertility is a slow process. Aggarwal et al. (1976) studied soil fertility changes under a 15 year old stand of Pongamia. The results showed the highest levels of organic matter and macro and micro nutrients under P. Millettia, with only levels of iron reduced. This could be related to the correlation with higher populations of micro-organisms under this species rather than in the open field situation. Soils from below the leaf litter of the species did not differ in nutritional status. Singh and Lal (1969) also reported a significant improvement in the fertility status of soils under P. Millettia in arid regions, and attributed this effect to variations in litter fall, ground flora and the root systems of this tree species. Aggarwal and Kumar (1990) studied the relative availability of nutrients from soil beneath P. Millettia over open field conditions and showed that the relative yield of pearl millet was 2-3 times higher than in the open field soil. The efficiency of applied nitrogen increased from 27% in the open field to 46% in soil under P. Millettia. The gradual accumulation of mineral nutrients by this tree, and the incorporation of these into an enlarged plant-litter-soil nutrient cycle, seems to be the mechanism responsible for this soil enrichment. The higher content of nitrogen, in relation to organic carbon, seems due partly to the nitrogen fixed by P. Millettia during the course of its growth (Virginia, 1986) and also due to the higher content of nitrogen in P. Millettia leaf litter. Reviewing the role of nitrogen fixation in MPTS, Dommergues (1987) concluded that the potential direct and ancillary benefits from nitrogen fixing trees vary greatly, depending on the species, climate, soil and management practices, and suggested selection of tree species which have high nitrogen fixing potential which are also adapted to the site conditions. The review of Juo and Lal (1977) compared the effects of a P. Millettia fallow versus a bush fallow, on selected soil chemical properties on alfisols in western Nigeria, and found a significant increase in the cation exchange capacity and levels of exchangeable calcium and potassium under Fabaceae. Cation-exchange capacity is defined as the degree to which a soil can adsorb and exchange cations.

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Cation-a positively charged ion (NH4+, K+, Ca2+, Fe2+, etc...) Anion-a negatively charged ion (NO3-, PO42-, SO42-, etc...) Soil particles and organic matter have negative charges on their surfaces. Mineral cations can adsorb to the negative surface charges or the inorganic and organic soil particles and once adsorbed, these minerals are not easily lost when the soil is leached by water, and they also provide a nutrient reserve available to plant roots. These minerals can then be replaced, or exchanged by other cations, (i.e., cation exchange), which suggests that some tree and shrub species can selectively accumulate certain nutrients, even in soils containing very low amounts of these nutrients, and therefore such species have an important role to play in agro forestry systems. Table 1. Soil fertility under mature stands of P. Millettia and P. Juliflora, and in adjacent open fields on an arid sandy soil. Nitrogen Species Organic matter % P. Millettia P. Juliflora 0.57 0.39 0.042 0.033 0.020 N 250 212 203 Macro-nutrients (kg/ha) P 22.4 10.3 7.7 Micro-nutrients (ppm) K Zn Mn Cu Fe

633 0.6 10.0 0.5 0.3 409 0.5 7.5 370 0.2 6.9 0.5 2.6 0.3 3.0

Open field 0.37

Table 2. Microbial population (total numbers per g dry surface soil) under 2 Pongamia species in an arid sandy soil. Species P. Millettia P.Juliflora Open field Bacteria Fungi Actinomycetes Nitrifying bacteria (x105/g) (x103/g) (x105/g) (MPN/g) 32 20 15 29 16 10 16 10 7 1.430 1.030 0.450

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Improvement in soil physical conditions Over time, the growth of MPTS (Multipurpose Tree Species), can also lead to improvements in physical attributes of soil such as infiltration rate, water holding capacity, and moisture availability through the indirect effects of litter fall, understory growth and root distribution, depending on the species and site conditions. Aggarwal et al. (1976) and Gupta and Saxena (1978), studied the effects of trees on soil physical characteristics after 15 years growth and observed higher moisture content in soils under the canopy of P. Millettia than under P. Juliflora. This was attributed to relatively higher organic matter content, litter fall, and a deeper root distribution, confirmed by a higher depletion of moisture from deeper layers under P. Millettia, compared to the surface spread of lateral roots of P. Juliflora which depleted moisture from shallow soil layers. Hazra (1989) also reported an increase in field capacity from 14.1% to 16.2% and a decrease in bulk density from 1.58 to 1.37 g/cm3 in soil under the canopy of P. Millettia as compared to the open field. Soil conservation Along with the improvement in soil fertility, soil physical and microclimatic conditions, the trees play an important role in soil binding processes and the reduction in the eroding action of both water and wind. Gupta et al. (1984) observed a 36% reduction in the magnitude of wind erosion behind a P. Millettia shelterbelt in western Rajasthan. In a 3 month period from April to June, mean soil loss over a 2 year period (1979-80) was 351.2 kg/ha on leeward of the shelterbelt and 546.8 kg/ha in adjacent unprotected soil. Conclusion P. Millettia, with its long taproot system, has the potential to improve soil fertility in Texas. Native trees have a lower potential for improving soil conditions because they have a spreading lateral root system, which would be more suitable for the revegetation of wastelands and sand dunes, and not for use in shelterbelts, nor especially, for arresting sand and soil movement. In addition to soil improvement, the principal effect of planting Pongamia trees in Texas is expected to be an increase in the water table. Why should this be? Because Pongamia Tap roots are deep seated, they not only store water, they also mine water for their need, even from a depth of 33feet, without competing with other crops. Pongamia is also a drought resistant tree, and when established it will check the wind and lessen evaporation in the immediate vicinity. It also may also "ameliorate the dryness of the atmosphere," which
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suggests that the agricultural land in its vicinity may therefore receive a greater amount of precipitation. There can be no doubt that drought has brought about environmental deterioration and land degradation in Texas, which has caused heavy losses to the farming economy. Perhaps it is the right time to re-examine the value of shelterbelt projects using Pongamia as a method of combating the effects of drought. Altered water cycles are major ecosystem dysfunctions on semi-arid South Texas rangelands. Overgrazing during the past 250 years, combined with a reduction in naturally occurring fires and frequent droughts, disrupted the ecological processes of nutrient cycling, energy flow, plant community dynamics, and in particular, hydrologic processes. Changes in soil fertility, increased erosion, and compaction contribute to decreased water infiltration and increased runoff, resulting in lower vegetation diversity, reduced surface coverage, increases in brush, and lower productivity. Over time, plant species may lose vigor and die. As herbaceous biomass decreases and bare ground increases, ecological processes of water, nutrient, and energy cycling are disrupted. This results in lost capacity for the plant community to maintain itself and further deterioration occurs. After original plant communities have been severely disturbed, stable processes have been upset, and invader plants have become established, the plant community cannot easily or economically be restored to simulate its original state. According to research into farming practices over the last 100 years, land degradation mainly results from interaction between excessive human activities and a vulnerable environment. Thousands of acres of rangeland in South Texas have been manipulated with numerous mechanical methods that have over time negatively impacted soil properties. Root plowing, for example, is commonly used for brush removal. In some areas of South Texas where the layer of topsoil is thin, root ploughing can rearrange the soil profile that contains the greatest percentage of the seed bank. This brings clay to the surface which often produces a hard, compacted surface or hard pan, making it difficult for water to penetrate. Because mechanical treatments alter soil properties, historical mechanical alteration of the habitat should be taken into consideration before implementing restoration efforts. Overgrazing has also affected South Texas soils. Continuous overuse of rangeland vegetation by too many grazing and browsing animals has led to loss of organic matter, increased soil compaction, and the loss of fertility in too many areas. The long-term absence of vegetation caused by this heavy grazing
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coupled with drought, has also led to erosion problems in some areas of South Texas. Areas that have undergone extensive erosion have lost viable topsoil, and they may now require significant soil rebuilding efforts in order to implement restoration strategies. A land degradation reversion process can only be realized by a series of land use readjusting measures, and new patterns of pasturage-agriculture interlacing models. The maintenance of plant health and vigor is critical in the first two years of any restoration project. So careful management of stocking rates and grazing durations are important considerations, and as a general rule, recently reseeded or restored rangeland with the shelterbelt enclosure should not be grazed for a minimum of 2 years. As with all rangeland practices, this period will vary from region to region based on climatic factors such as annual rainfall and soil type and in some cases, some newly restored areas may need to be rested as much as 4 years. Perennial grasses, forbs, and shrubs may need several years to establish root systems and have enough growth above ground level to withstand removal by grazing. Following 2 years of total rest within the shelterbelt enclosure, if the plant community has become established, the area can be grazed, based on a sound grazing plan. Stocking rates should be based on the objectives of each restoration project. In this rangeland/farmland interlaced belt, there are generally three major types of severely degradated land. Each different type has its own cause of desertification and characteristic fragilities, and needs a specific model for transformation. The emphasis of this document is to provide a basic understanding of the purpose and processes involved in establishing Pongamia shelterbelt enclosures in Texas. It does not contain suggestions for every property, for every possible revegetation scenario or plant species native to Texas, nor does it describe in detail the potential harvest and biodiesel benefits of the Pongamia seed. Knowledge regarding the potential of, and the benefits of using Pongamia, will continue to increase over time through the implementation of restoration strategies and continued experimentation. I hope this guide serves as a good place to begin. Status and process of land degradation Land degradation is recognized as an environmental and social-economic issue, and it attracts attention from all over the world.

Most of the area subject to degradation suffers from high pressure


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intensive human impacts. Viewing the current situation as a whole, the degree of degraded land has become more serious as a direct results of drought which continues to expand in Texas, stunting crop growth, delaying planting and putting additional stress on livestock producers. According to Texas AgriLife Extension Service personnel, as of March 22 2011, the U.S. Drought Monitor ranked 29 percent of Texas as being under an extreme drought, and more than another 30 percent as being under severe drought. Overall, according to the monitor, 98 percent of the state is abnormally dry. According to the statistics of areas with different land use purposes, human impact, the limited rainfall, and dynamic wind have all played a key role during periods of drought. The challenges are still great, but they differ in nature in the various communities. Measures to combat and prevent land degradation have been used for years, but new challenges, such as the increasing water scarcity and aridity, and the loss of the vegetative cover are still emerging. The semi-arid areas of Texas, characterized by low and high variable rainfall, high evapotranspiration, strong wind and low humidity, are becoming more and more hostile environments for the survival of people, animals and plants. A great deal of the productive land in the region has now become marginal pasture, which is at risk of becoming irreversibly degraded if brought into cultivation. There can be no doubt that the region is faced with serious environmental challenges, and these could easily translate into more degradation and desertification, if timely action is not initiated. The available evidence shows that the design and implementation of new and successful programmes is possible, and they can provide wide-ranging benefits. However, this does not imply that these programmes are costeffective, are easily replicable, or can simply be adapted to fit successfully in new settings. Nonetheless, the most successful programmes have three major elements in common that are worthy of replication, and each can contribute to the success of other intervention programmes: (a) They have all relied on, and encouraged the use of, local inputs and resources, including staff and technologies which have been active for a long time and have provided regular benefits to their stakeholders (expertise, trust, stability and entitlements); (b) They have all encouraged coordinated action by groups and concerned communities at the local level; by fully involving them in the decision-making and implementation process (collective action and participatory approach);

(c) They have all relied on the strong, well-planned and well-targeted
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support of public institutions, which have worked in partnership with concerned stakeholders or beneficiaries (aspects easily replicable). THE OBJECTIVES OF THE PONGAMIA SHELTERBELT PROJECT This project suggests using shelterbelts of Pongamia for the protection of arable lands against drought, winds, and hard pan, the provision of water for irrigation, improvement of rangeland, and the enhancement of living standards for the communities living in the area. BACKGROUND TO THE PROJECT The project area is where the most serious drought covers parts of Texas, including all of the Colorado River basin, where the month of March ended as one of the driest on record, and most locations recorded less than a quarter inch of rain. In Austin, March rainfall was less than a tenth of an inch. This ranked as the 4th driest March since 1856. In addition, rainfall between October 1st and mid-April has generally been less than one-third of normal. With very little rain and frequent periods of strong winds, drought conditions continue to strengthen. According to the National Drought Monitor, on April 21 almost all of the Colorado River basin was in extreme drought. Much of Bastrop, Lee and Fayette Counties are in exceptional drought, the most severe drought category. This is the largest and most severe classification of drought across the Colorado basin since September 2009. Along with the lack of rain, the temperatures this spring have been much warmer than normal. As a result, soil moisture is very low, stock pond levels are dropping fast, and evaporation rates are high. This extended period of very dry weather has also seriously impacted inflows to the Highland Lakes. Over the last six months, inflows have been lower than the average monthly inflows for a six-month period during the worst drought on record, which occurred between 1947 and 1957. While in company with lakes Travis and Buchanan, the regions water supply reservoirs, are below average for this time of year, although they are still higher than they were at the start of summer in the most recent extreme drought year of 2009. Long-range weather forecasts indicate rainfall will likely remain below normal through spring and early summer as the storm track generally stays to the north of Texas. With little rain in the forecast, drought conditions will likely grow worse in the coming weeks.

Habitat deterioration is generally caused by human and/or animal


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activity, and can be augmented by external stresses such as droughts or disruption of natural fire patterns by human activities. Altered water cycles are major ecosystem dysfunctions on semi-arid Texas rangelands. Overgrazing during the past 100 years, combined with a reduction in naturally occurring fires and frequent droughts, disrupted the ecological processes of nutrient cycling, energy flow, plant community dynamics, and in particular, hydrologic processes. Changes in soil fertility, increased erosion, and compaction contribute to decreased water infiltration and increased runoff, resulting in lower vegetation diversity, reduced surface coverage, increases in brush and lower productivity. Over time, plant species may lose vigor and die. As herbaceous biomass decreases and bare ground increases, ecological processes of water, nutrient, and energy cycling are disrupted. This results in lost capacity for the plant community to maintain itself and further deterioration occurs. After original plant communities have been severely disturbed, stable processes have been upset, and invader plants have become established, the plant community cannot easily or economically be restored to simulate its original state. The Society for Ecological Restoration defines restoration as the process of assisting the recovery of an ecosystem that has been degraded, damaged, or destroyed. Restoration is a holistic process which not only involves revegetation, but also entails the removal of non-native species, the reintroduction of soil biota (such as invertebrates, insects, and fungi), and the implementation of management strategies that will help the system function in a healthy manner. Increasing stability and water infiltration in the soil surface initiates repair and maintenance of damaged processes that enhance plant production and protect the soil surface with plant litter or living vegetation. It is evident from the above analyses that land degradation in Texas has led to a loss of productive land, which is affecting sustainable economic development in farming-pastoral, pastoral, dry farming areas. Things are not looking pretty, and there seems to be no way of alleviating the already severe drought gripping Central Texas. Although the current dry spell is nowhere near as severe as it was two years ago, the weather expert with the Lower Colorado River Authority says things do not look good and he does not expect more rain soon in the Austin area. If you look at the national drought position in March, it shows that drought persisted across much of the region, and will do so over the next three months," LCRA Meteorologist Bob Rose says. Looking ahead to next summer, we may have to look to the tropics once again to see the possibility of some relief. Early indications are that we will see some above-normal season of
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activity in the tropics, but mostly dry conditions will continue well into spring but temperatures averaging a little bit above normal. Pockets of Texas are already in much worse condition. That includes parts of west Texas and an area east of Giddings and near College Station. The US Government attaches great importance to the various ways of combating land degradation and substantial work has already been done and certain achievements and experience have been gained. But the time has come to evaluate, not only the status of, but also the problems that exist in combating land degradation in the USA. We also need to analyze examples, and summarize experiences currently found in combating land degradation in different types and forms and under different conditions, so as to provide a scientific basis for the formulation of action programs. To tackle land degradation problems in a comprehensive way, ecoenvironmental assessment of construction projects should be strengthened, and work on ecological demonstration plots aimed at sustainable development in land degradation areas, should be carried out now. Generally, problems such as inadequate tree areas, grassland degradation, land desertification, etc. still exist in Texas. Therefore a further strengthening of eco-environmental and biodiversity is still an important task confronting the government. Concerns about conservation of tropical rainforests and other well-known regions of the world are widely publicized, yet the conservation of a region of inestimable biological wealth lies relatively unrecognized on the back doorstep of North America. This region lies south of a line from Port OConnor to Victoria, northwest to San Antonio and west to Del Rio. Known collectively as South Texas this is one of the most biologically diverse regions in the world. In fact, it is termed hyper-diverse by many ecologists, and is considered by some as one of the last great habitats remaining intact in North America. The diversity of native South Texas habitats ranges from the fine sands of the Coastal Sand Plain to the caliche ridges of the Bordas Escarpment; and from the riparian woodlands of the Nueces River to the shrub lands of the Rio Grande Plains. This diversity supports a wide array of wildlife species, ranging from migratory birds such as sandhill cranes and piping plovers, to more permanent residents such as ocelots and white-tailed deer. Native plants are intrinsic to the overall resilience and stability of this unique region, and are a critical component of the numerous food and energy cycles that maintain this biological diversity. About Invasive Species and Non-native Plants
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An invasive species is defined as a species that is: 1) Non-native (or alien) to the ecosystem under consideration and 2) Whose introduction causes or is likely to cause economic or environmental harm or harm to human health (definition from Executive Order 13112). A plant may be invasive under certain soil and/or environmental conditions, but not others. Establishment and restoration effort using Pongamia in support of native South Texas plants will help maintain the regions important phytogenetic resources and the ecosystems that are part of South Texas biological heritage. It is worth repeating that generally, species-rich plant communities are more resistant to drought than species-poor plant communities, an important attribute in semiarid habitats. Resilience, or rate of return to pre-drought conditions, is also greater for more species-rich communities. Species-rich communities are commonly more biologically productive than species-poor communities. Benefits of growing Pongamia in South Texas With a calorific value of 4600 kcal per kg, Pongam is commonly used as fuel wood. Its wood is beautifully grained and medium to coarse textured. However, it is not durable because it is susceptible to insect attack, and tends to split when sawn. Thus the wood is not considered a quality timber. The wood is generally used for cabinet making, cart wheels, posts, agricultural implements, tool handles and combs. The Pongamia tree is drought-resistant and insect-resistant, with a deep tap root that grows down to more than 32.5 feet where water exists. Even in dessert-like terrains, it flourishes in the most desolate places - but thats not all. The seeds that are produced by the trees can be pressed into oil that can be used to fuel farm machinery and even cars and trucks. Because the production of bio-fuels is a relatively new development, most information is gathered by a literature study of academic papers, technical reports and Internet websites, all of which contain what can best be described as hype. But in most developed areas of the world, including Texas, the primary source of energy is still fossil energy from oil and gas. In fact most farmers still use large amounts of fossil fuels to run their farm machinery and irrigation systems. Some estimates suggest that about 17% of our fossil energy expenditure supports our food system. Energy is also used to manufacture the fertilizers and pesticides needed
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by farmers, as well as powering food processing and food transport systems. But fossils fuels are a finite resource and once gone, their supplies cannot be replenished. Numerous studies indicate that the mighty U.S. has only about 20 years of oil reserves, and about 30 years of natural gas reserves left, given current levels of use. But a steadily increasing population, such as that currently being experienced in Texas, places even greater demands on limited supplies, while requiring more and more oil to be imported. According to the U.S. Department of Energy, about 60% of the current US oil supply is being imported, and nearly 100% will be imported by 2015 and in our lifetime, and certainly in our children's, we will witness the depletion of the worlds oil reserves. As US domestic oil supplies grow increasingly scarce, the price of gasoline and associated products will inevitably rise. Then, both the high cost and the limited availability of oil and other fossil fuels will restrict all human activities, including the expansion of intensive agriculture. Farmers will need to produce even more food to feed the growing population, but will lack the energy resources to expand the agriculture systems. A possible solution for these problems is of course to produce renewable alternatives for fossil fuels, such as bio-fuels. Finding non-edible oils, particularly from tree crops, which could relate more closely to the price of crude, is essential and having extensively researched the subject. I am satisfied that Pongamia pinnata is not only the most viable and sustainable species, but it is also the one with the greatest potential and most environmentally sound characteristics. In particular, being a legume, it can contribute significant amounts of nitrogen to the soils on an ongoing basis reducing the fertilizer ongoing costs. Not only that, the seedcake remaining after the pressing process can be used as cattle feed, or as an organic fertilizer for crops. The thick yellow-orange to brown oil which can be extracted from the seeds can be used for biodiesel. Yields of 25% of volume are possible using a mechanical expeller. However, crushers yield an average of 20%. The oil has a bitter taste and a disagreeable aroma, thus it is not considered edible. In India the oil is used as a fuel for cooking and lamps. It can also be used as a lubricant, water-paint binder, or as a pesticide, and it is used in soap making and tanning industries. The oil is also known to have value in medicine for the treatment of rheumatism and it can be used as well as a treatment for human and animal skin diseases. It is effective in enhancing the pigmentation of skin affected by leucoderma or scabies.

Fodder and feed.


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Opinions vary on the usefulness of Pongamia as fodder. Troup (GOI 1983) reports that the leaves can be eaten by cattle and are readily consumed by goats. However, in many areas of India where Pongamia is grown, the leaves are not commonly eaten by farm animals. Its fodder value is greatest in arid regions. According to Singh (1982) the leaves contain 43% dry matter, 18% crude protein, 62% neutral detergent fiber, 40% acid detergent fiber, and in vitro dry matter digestibility of 50%. The presscake, remaining when oil is extracted from the seeds can best be used as poultry feed, but when it is applied to the soil, it has pesticidal value, particularly against nematodes. Other uses include the incorporation of leaves and the presscake into soils to improve fertility. Dried leaves can also be used as an insect repellent in grain stores and string and rope can be made from the bark fiber. In the Far East and India, Pongam is often planted in homesteads as a shade or ornamental tree, and it is used in Brisbane Australia in avenue plantings along roadsides and canals. When planted as a shade or ornamental tree, branch pruning may be necessary to obtain a trunk of appropriate height. It is a preferred species for controlling soil erosion and binding sand dunes because of its dense network of lateral roots. Its root, bark, leaf, sap, and flower also have medicinal properties. Silviculture Pongam is best established by seeds being raised in nursery to become seedlings which can be transplanted. Propagation by branch cuttings and root suckers is also possible, but not recommended. In peninsular India, the seeding season is April to June, and the seed yield per tree ranges from about 10 kg to more than 50 kg. There are 1500-1700 seeds per kg. Seeds, which require no treatment before sowing, remain viable for about a year when stored in air-tight containers. The seed germinates within two weeks of sowing and the seedlings attain a height of 25-30 cm in their first growing season. Transplanting to the field should occur at the beginning of the next rainy season when the seedlings are 60 cm in height (GOI 1983). Seedlings have large root systems so the soil should be retained around the roots during transplanting. Seedling survival and growth benefit from annual weed control for the first three years after transplanting. The spacing suggested in shelterbelt enclosure plantings is about 8 m between plants, although in block plantings, the spacing can range from 2m x 2m to 5m x 5 m. Pongam seedlings withstand shade very well and can be interplanted
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Author John M Jeapes

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within an existing tree stand. This species can be regenerated by coppice management and because it tolerates moderate levels of salinity, Pongam is an ideal candidate for saline soil reclamation. The extraordinary diversity of plants, wildlife, and habitats is partly driven by an environment that is quite variable across the Texas landscape. But vegetation in Texas must be exceptionally resilient to survive extreme heat and low rainfall, and yet be able to make a noticeable comeback, even after experiencing years of severe drought. Across the region, the annual rainfall averages 24.5 inches, but fluctuations can be dramatic. Between the years 1900 and 1983, the driest year was 1917, when the regional rainfall average was 9.5 inches. The wettest year was only 2 years later in 1919, however, when the regional average was 40.8 inches. Overall, 36% were drought years and 34% were wet years. The Texas climate is subtropical sub-humid-to-semi-arid, with high temperatures, high evapotranspiration rates, but very few killing frosts. The average annual air temperature in Texas exceeds 70F, which is comparable to southern Florida. July temperatures commonly exceed 98F, and these extremely warm temperatures have a profound impact on the ecology of plants and animals. Pongamia is noted for its shade potential, and it can play a keystone role in the regions ecology by moderating the thermal environment beneath their canopies. This, in turn, will provide protective cover for many plant and animal species in the region. Trees alter the environment in which we live by moderating climate, improving air quality, conserving water, and harbouring wildlife. Climate control is obtained by planting Pongamia which, when fully grown, will moderate the effects of sun, wind, and rain. Radiant energy from the sun will be absorbed, or deflected, by the leaves in the summer, and is filtered by the branches of this deciduous tree in winter. The air is cooler in the shade of trees, and the ground is not exposed to direct sunlight. Vegetation cover is an important factor to keep ecosystem in normal condition. Normal vegetation cover can protect soil, moisture, and animals effectively. However, when vegetation cover is under pressure, and degradation is already taking place, the loss of soil, moisture and animal populations is only a matter of time. A degraded ecosystem quickly loses its many microhabitats and their inhabitants, but regeneration of vegetation within a pongamia shelterbelt enclosure is comparatively easy, and once regenerated, new vegetation helps in the propagation of both the plants and animals alike.

Wind speed and direction can be affected by trees, and the more
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compact the foliage on an individual tree, or group of trees, the greater the influence of the windbreak. The downward fall of rain, sleet, and hail is initially absorbed, or deflected by the trees, which nevertheless do provide some protection for native plants. As has already been shown, trees intercept water and store some of it deep underground; this reduces storm runoff and the possibility of flooding. Dew and frost are less common under trees, because less radiant energy is released from the soil in those areas at night. The temperature in the vicinity of a Pongamia tree is noticeably cooler than that away from the tree, so, the larger the Pongamia shelter belt is, the greater the cooling effect. By using Pongamia we will be able to moderate the heat-island effect caused by the dry earth. Air quality can be improved through the use of trees, shrubs, and turf. Leaves filter the air by removing dust and other particulates. Rain then washes the pollutants to the ground. The leaves absorb carbon dioxide from the air to form carbohydrates that are used later in the plants structure and function. In this process, leaves also absorb other air pollutants, such as ozone, carbon monoxide, and sulfur dioxideand give off oxygen. Pongamia is a legume tree that grows to about 1525 meters (1580 ft) in height with a large canopy which spreads equally wide. It may be deciduous for short periods. The leaves are a soft, shiny burgundy in early summer and mature to a glossy, deep green as the season progresses. Flowering starts in general after 34 years. Cropping of pods and single almond sized seeds can occur by year 2. Small clusters of white, purple, and pink flowers blossom on their branches throughout the year, maturing into brown seed pods. Naturally distributed in tropical and temperate Asia, from India to Japan to Thailand to Malaysia to north and north-eastern Australia to some Pacific islands it has been propagated and distributed further around the world in humid and subtropical environments from sea-level to 1200m, although in the Himalayan foothills it is not found above 600m. Withstanding temperatures slightly below 0 C (32 F) and up to about 50 C (120 F) and annual rainfall of 5002,500 mm (20100 in), the tree grows wild on sandy and rocky soils, including politic limestone, and will grow in most soil types, even with its roots in salt water. The Pongamia tree is well suited to intense heat and sunlight and its dense network of lateral roots and its thick, long 10m (32.5 FEET) tap root not only make it drought-tolerant, it also creates a reservoir deep underground because its deep roots allow most of the water to percolate into the soil, which then spreads like water through a sponge during periods of dry weather. The dense shade Pongamia provides, slows the evaporation of surface
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Confidential

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water, and its root nodules promote nitrogen fixation, a symbiotic process by which gaseous nitrogen (N2) from the air is converted into ammonium (NH4+, a form of nitrogen available to the plant). By planting shelterbelts of Pongamia trees and shrubs, we will, in time, return the land to a more natural, less artificial environment. Birds and other wildlife will be attracted to the area, and the natural cycles of plant growth, reproduction, and decomposition will once again be present, both above and below ground. Natural harmony will be restored to the urban environment. Shelterbelt enclosures of Pongamia can help to implement habitat conservation plans by controlling exotics and creating and enhancing the habitat. Shelterbelts of Pongamia will create habitat islands, which will allow for the planting of native grasses and forbs that should support butterfly populations. These islands should be constructed in strategic locations in habitat restoration areas to help native grasses expand into these new areas. These islands will need stewarding for several years to help them establish, and resist invasive plants, until the habitat is self-sustaining. Detailed monitoring of the process will need to be carried out so that we can continue to enhance the establishment of the shelterbelt pongamia island system over the years. In addition to habitat creation, Pongamia shelterbelts will also assist with invasive plant removal. Selection of the planting site. Where to plant is generally best as a collective decision made by policy makers, farmers, land owners, and the planting crews, based on information obtained in the site reconnaissance. The key is to select a site that, when planted, will lead to the establishment of a successful pongamia plantation. Often, the choice of the planting site will be limited to land which is no longer suitable for agriculture or livestock production; if this is the case, the site reconnaissance information gains importance. The boundaries of the planting site, once the area has been chosen, should be marked with posts and when there is a danger of trespassing and/or damage by grazing animals, a boundary fence should be established. But fencing is costly and, therefore, should only be built when other means of protection are not effective. But once a pongamia plantation enclosure is well established, and the trees are sufficiently tall, the fences can be removed and reused at another planting site. When roads and other passageways traverse the planting site, they should also be contained with fences. In many instances, Pongamia tree and shrub planting can be undertaken to protect fragile sites from degradation.

However, in some situations, the fragile sites should not be planted; it


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may be better not to disturb the soil in these areas. Where gullies have been severely degraded by erosion, protective measures, other than the planting of vegetation, (such as building small check dams), may be necessary. Species selection only when the best possible information has been collected on the characteristics of the site to be planted, the next step is the selection of the seeds for Pongamia plus any shrub species to plant. The aim is to choose species which are suited to the site, will remain healthy throughout the anticipated rotation, will produce acceptable growth and yield, and will meet the objectives of the plantation. For a successful planting, performance data may have to be extrapolated from one locality to another. Results from a single locality where a tree or shrub species is growing, (either naturally or as an exotic), apply only to that locality; its performance application in another locality involves the assumption of site comparability, an assumption which may or may not be justified. When reliable information shows a close similarity between the site to be planted, and that on which the species is already successful, it is generally possible to proceed to large-scale planting with confidence. In practice, the data is seldom available, and planting on the new site becomes, (in effect), experimental and we should proceed on a small experimental scale. When this occurs, detailed performance records need to be maintained throughout the experimental planting period. The selection of a tree or shrub species through the use of analogous climates is as important as the first step; but this must be amplified by an evaluation of localized factors which can be more important, (for example, soil, slope, and biotic factors). However, the ability to match closely a planting site and a natural habitat may not preclude the need for species trials, since climatological or ecological matching may not reveal the adaptability of a species. It cannot be emphasized too strongly that, without such trials, the choice of tree or shrub species is, (in most cases), a risky business. Since planting in arid environments is normally an expensive undertaking, large-scale failures which result from the wrong choice of species, or the failure to test them, can prove costly. Preparation of the site When the trees, or the seedlings, arrive from the nursery, the site should have been prepared to ensure that planting can proceed without delay.

Arid zone conditions frequently demand more intensive and thorough site
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preparation than is necessary for planting programmes in moist climates. Objectives of site preparation Among the objectives of site preparation in arid zones are to: 1. Remove competing vegetation from the site. 2. Create conditions that will enable the soil to catch and absorb as much rainfall as possible. 3. Surface runoff should be reduced to increase the moisture in the soil. 4. Provide good rooting conditions for the planting, including a sufficient volume of rootable soil. 5. Hardpans must be eliminated. 6. Create conditions where danger from fire and pests is minimized. Site preparation should be directed toward giving the seedlings a good start with rapid early growth. In general, the methods used to achieve site preparation will vary with the type of vegetation, amount and distribution of rainfall, presence or absence of impermeable layers in the soil, the need for protection from desiccating winds, and scale of the planting operations. Additionally, the value of the tree or shrub crop to be grown is important in determining the amount of expense that may be justified in shelterbelt establishment. Methods of site preparation - in general, preparation of the site by hand is possible, but only economical for relatively small-scale projects where the labor of clearing the competing vegetation and working the soil is not too time-consuming. Under certain conditions, animal-drawn ploughs and harrows can also be economical for small-scale operations. Mechanical soil preparation, used increasingly in large-scale planting programmes, has become a common practice in many areas; often, because the supply of labor and the time available for ground preparation are too limited to permit large-scale projects to be undertaken by hand. Some operations, such as deep sub soiling and the breaking up of hardpans can only be done by machines. Whatever method of site preparation is used, a planting pit, (of an appropriate size), should be prepared. The objective of creating planting pits is to aerate and loosen the soil in which the plants will grow. When these planting pits are prepared, they should not be left empty with the excavated soil lying on the ground, but refilled immediately; otherwise sun and wind will dry out the soil completely. Planting holes - 0.4m x 0.4m x 0.4m at a spacing of 5m x 5m. Sometimes, spot preparation may be sufficient, but the spots should be
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Author John M Jeapes

Confidential

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large (for example, 1 to 1.5 meters in diameter). It is important that the work be done thoroughly. Other methods of soil preparation by hand are the ash-bed method, tieridging, contour trenching and terracing, and the steppe method. The ash-bed technique consists of piling the debris from harvesting or clearing the land into long lines or stacks. After drying, the debris is burned and vegetation is planted in the ash patches. Sometimes, the lines or stacks of debris are covered with clods to obtain a more intense heat when burning. Advantages of this method are that the burning kills the competing vegetation, the area remains free of this vegetation for an appreciable period, and the ash provides a useful fertilizer for the planted trees or shrubs. The tie-ridging technique involves the cultivation of the entire area and the establishment of ridges at specified intervals. The main ridges, aligned along the contours, are joined by smaller ridges at right-angles to create a series of more-or-less square basins which retain rainwater and prevent erosion. The ridges are generally 3 meters apart. The trees and shrubs are planted on the ridges. This method is suitable for flat or gently sloping ground and can be combined with an agricultural crop during the initial years of plantation establishment. Trenching techniques along the contours can be used in site preparation in hilly country. The trenches can be continuous, divided by cross banks, or consist of short discontinuous lengths, arranged so that the gaps between the trenches in one row are opposite those in the next row; in this latter instance, runoff from rainfall is caught. Trenches are formed manually or mechanically. On gently sloping ground, the herring-bone technique can be used. Terraces, which are wider and flatter than trenches, can be either manually or mechanically formed on the side of a hill by digging soil from the uphill side and depositing it on the downhill side. Usually, the bottom of the terrace is made to slope into the hillside. The purpose of terracing is to retard and collect water runoff between the terraces. Because of the improved soil moisture conditions, the terrace provides improved conditions for plant growth. Planting is done on the ridge of soil, at the base of the ridge, or in patches at the bottom of the trench, according to moisture conditions. Terraces are used widely on moderate to severe slopes. Terraces can be 2 to 3 meters or several hundred meters in length. If short, they can be staggered on the hillside wherever convenient. Sometimes, crescent-shaped terraces are constructed with the two tips of the crescent pointing uphill. The steppe" method of site preparation, is designed to promote the
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Author John M Jeapes

Confidential

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02/10/2011

growth of trees and shrubs in extremely dry areas. The surface of the soil is modified by breaking-up and stirring the deep layers of the soil with rooters, rippers, or large discs, and then building widely-spaced, parallel ridges following the contour. Ridges are built with the topsoil, and trees or shrubs are planted on the lower half of the ridges facing the slope; here, the depth of moist soil is greatest, due to accumulation of water after rain. The purpose of the steppe method is to maintain a reserve of moisture in the deep layers of the soil. Spacing between ridges is greater with lower rainfall, as the catchment area between the ridges is increased. Time of planting - the planting season generally coincides with the rainy season; usually, planting is started as soon as a specified quantity of rain has fallen. This amount of precipitation must be judged on the basis of local knowledge. Planting can also be initiated when the soil is wet to a specified depth (approximately 20 centimeters). A common mistake is to start planting too soon. On the other hand, if planting is started too late, it may be difficult to complete a large planting programme in the scheduled time, and the plants will lose the maximum benefit of rains after planting; this can be a serious matter where the rainfall is low and erratic. The planting of the containerized stock is usually done in holes that are large enough to take the containers, (or the root-balls when the plants are removed from the containers). It is essential that the surrounding soil is firmed down around the plant immediately after planting to avoid the formation of air gaps which can lead to root desiccation. A good practice for the preparation of planting holes is to surround the planting pit with a small ridge (15 to 20 centimeters in height) of soil, to obtain a small basin (about 80 centimeters in diameter); this is especially helpful when the plants are watered individually after planting. The small prepared basin can also be covered with a plastic sheet (held in place on the ground with stones or earth), with an opening in the center for the plant. The plastic sheet impedes evaporation of ground water from the planting hole; also, dew collects on its surface and runs to the central opening of the sheet to irrigate the roots. Through conservation of soil moisture, plastic films facilitate more rapid establishment and growth of trees and shrubs during the initial and most critical years. Another benefit of opaque plastic films is that they inhibit weed growth by reducing light penetration. With the suppression of weeds in the immediate vicinity of the plants, labour also can be saved.

A threat to newly-planted trees in arid zones is the high rate of


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Author John M Jeapes

Confidential

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transpiration. Unless the plants can establish themselves quickly and compensate for the transpiration by taking water through their root systems, they will wilt soon after planting. This explains why even a single watering immediately after planting can be useful. In general, containerized seedlings have a distinct advantage over bare rooted seedlings, in that the earth ball surrounding the roots provides protection during transport and enables the plant to establish itself quickly and easily. The restriction of lateral root extension, a result of using containers, can cause root malformation, coiling, and spiraling. In extreme cases, the coiling can lead to strangulation of the roots and the death of the plant. In other situations, it may reduce wind-firmness or lead to stunted growth. Unfortunately, the symptoms may not become apparent until 4 to 5 years after planting. To reduce the damage of root malformation in containerized plants, a common practice is to remove the container from the soil cylinder before planting and make two or three vertical incisions to a depth of one centimeter with a knife to cut strangler roots. As a further precaution, the bottom 0.5 to 1 centimeter of the soil cylinder can be sliced off. Care must be used to ensure that the soil does not disintegrate and expose the roots to desiccation. By observing trees and shrubs growing under natural conditions, it is often found that plants grow widely apart in low rainfall areas. Therefore, wide spacing of plantings in arid zones generally should be practiced to avoid competition for soil moisture. The amount of water available to a tree or shrub in a shelterbelt is proportional to the stand density. On dry sites, it may be necessary to plant widely apart and to remove all competing ground vegetation; this increases infiltration of rainwater and decreases water losses through transpiration by plants and evaporation from the soil. When irrigation or mechanical cultivation is practiced, it is necessary to adjust spacing to the width of the machinery used and to ensure that plants are placed in straight rows. Actual spacing varies with species, site, and the purpose of the forest plantation. In fuel wood plantations, for example, one might prefer closer spacing than employed in other kinds of plantations. Seldom can a spacing of less than 3 x 3 meters be applied, however. The number of trees per hectare, according to the spacing between the lines in a plantation and the spacing of plants within a line, is given in Annexure. For example, with a spacing between lines of 3 meters and a spacing of
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

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Confidential

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plants within a line of 3 meters, a planting density of 1311 trees per acre will be required. Some of the other applications that help in planting and can be resorted to help the regeneration process are discussed briefly as following: Mulching can be accomplished before or after seeding and is important for preventing water erosion, reducing wind erosion, reducing soil crusting, decreasing rainfall impact, insulating the soil surface, and decreasing evaporation. Mulching will be most critical on slopes where erosional concerns require temporary stabilization prior to establishment of seeded or planted vegetation. Mulching materials include straw, native grass, erosion control fabric, and others. Application of straw or grass mulch should be performed in low wind conditions to allow for uniform application. Noxious weeds are non-native weeds that invade an area of vegetation, and then compete with the native species, sometimes replacing valuable native vegetation with useless weedy vegetation. Generally, wildlife do not eat noxious weeds, so they are forced to leave invaded areas in search of food. In addition, livestock do not generally eat noxious weeds that invade rangelands. Erosion is often times more severe in areas infested with noxious weeds due to decreased cover. Because of these serious impacts, reclamation activities should take rigorous precautions against the infestation of noxious weeds. Prevention of noxious weed invasion at each site will require integrative management of many different factors including, preexisting weedy vegetation, proximity of weed seed source, density of vegetation established during reclamation, grazing practices following reclamation, competition between other species present, herbicide control programs, biological controls indigenous to the site, and other factors. Lime Application: In order to incorporate lime amendments for soil acidity neutralization, application is accomplished prior to soil tillage. Not all soils will be acidic therefore, lime addition will only be necessary on a site by site basis. In the event that lime amendments are necessary, superficial application may be accomplished by a variety of equipment. Independent of the choice of application equipment, amendments should be spread uniformly on the soil and carried out in patches, strips, or by complete cultivation. Careful cultivation is necessary for tree and shrub species which are
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

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02/10/2011

intolerant of competition from grass, forte, and woody growth (such as most eucalyptus species). As a result of the adoption of aforementioned measures, a vast expanse of degraded land can be separated and encircled by green ecological Pongamia shelterbelt enclosures. Land degradation is a complex process caused by human impacts and natural factors. For a sustainable development in regions affected by the process, prevention and remedy of land degradation is an arduous task which should and must be accomplished, and it can be accomplished since the effect of using shelterbelts is a well known afforestation process. 1. Select appropriate tree species to grow within the Pongamia shelterbelt enclosures, and grass species for afforestation. Allocate tree species properly. Native tree and grass species with high adaptability such as, sugar hackberry and huisache should be considered as should other trees, which rise to dominant status depending on location, include eastern cottonwood, post oak, live oak, cedar elm, anaqua, honey mesquite, pecan, black hickory, shagbark hickory, Texas persimmon, Texas ebony, mustang grape, and muscadine grape. 2. An essential guarantee to accelerate vegetation rehabilitation to combat land degradation is to integrate combating land degradation with management to practice tree preservation. 3. After enclosure and afforestation, vegetation coverage is expected to increase from less than 10 percent to more than 50-60 percent. Millettia Pinnata = Pongamia Pinnata Pongamia, unlike Jathropha, has no known Carcinogenic effects. The Seeds: Pongamia seeds are the source of the oil, and for many the most important part of the plant. The seed in shell contains between 3040% oil but this is quite variable, and is one of the selection factors to be employed in choosing elite plants. The Shell: The shell is a waste product, however when burnt, it has similar energy to brown coal, so it can be used in either in a gasifier, or simply thrown back onto the soil as a fertilizer. The Meal: is what is left of the seed after the oil has been extracted using a conventional screw press and constitutes approximately 60% of the seed by weight. This can be put through a steeping process to remove the remaining oil with its unpalatable alkaloids, and fed as a protein meal at up to 37% of the ration for cattle. To avoid the need for steeping, solvent extraction of the oil will also
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

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produce a feed of the same quality. However, for a small scale operation, solvent extraction would not be practical. If steeping or solvent extraction is not used, it is still safe to feed the crushed meal at a rate of up to 10%. Seed in shell can be used whole as a boiler fuel (replacement for coal or other solid fuels). Will it work? One thing is certain . . . .if you dont try It, Youll never know! What will it cost? The cost of cultivation depends upon labour availability, but figures suggest around US$ 550 -1200 per hectare The cost maintenance of Pongamia Shelterbelts is expected to be about US$ 100-200 per year per hectare The cost of oil extraction from year four onwards roughly comes to about US $ 0, 12 / kg The cost of Bio Diesel is largely dependent on the choice of feedstock and the size of the production facility but the fuel produced after year four will cost approximately US$ 0, 40 per litter plus tax when applicable. Annex 1 Biofuels Unit Cost The cost of cultivation of Pongamia pinnata in one hectare at an espacement of 5m x 5m per ha has been worked out at between US$ 550 to 1200 per ha (unirrigated condition). The details of various items of expenditure are viz., land preparation, digging of pits, plant and material, manure and fertilizer, interculture, watering & plant protection, etc. The cost break down of Pongamia shelterbelts, per hectare, is as follows: ESPACEMENT: CASUALTY REPLACEMENT: NO.OF TREES/HECTARE: SURVIVAL/HA: Site preparation per hectare: Initial ploughing: Alignment & staking: Digging of pits: Refilling of pits after mixing: FYM, Fertilizer & insecticides: Cost of FYM @ 2 Kg/pit 5M x 5M 20% 441 400 10 Man Days 6 hrs. 5 Man Days 13 Man Days 3 Man Days 50 pits/Man Day unknown

This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

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Cost of fertilizer @150 gm./plant unknown Cost of plants including transport $US3/plant Planting and replanting 100 plants per Man per day = 5 Man Days/ha Weeding, soil working, application of fertilizer, etc. (3,2,1,1) 10 Man Days Plant protection measures Yield and income per hectare Mature Pongamia Shelterbelt Plantations of one hectare should produce 3-5 tons of seeds which can bring an income of US$800-1400 per hectare per year for the individual farmer. Especially when planted where no other crop can grow without substantial inputs and reclamation. Therefore growing the hardy pongamia as a Shelterbelt enclosure appears to be a viable option for Texas. The financial BENEFITS of growing Pongamia for Biodiesel Pongamia is seen by many to be the perfect crop. It can be grown in very poor soils, actually generating top soil as it goes, it is drought and pest resilient, and it has seeds with up to 40% oil content. Here are some facts and figures about Pongamia relating to its growth as an oil product: - Pongamia grows well on low fertility soils; however increased yields can be obtained using a fertilizer containing small amounts of magnesium, sulphur, and calcium. - Pongamia can be intercropped with many other cash crops such as coffee, sugar, fruits and vegetables with the Pongamia offering both the fertilizer and protection against livestock. - Pongamia needs at least 600mm of rain annually to thrive, however it can survive three years of drought by dropping its leaves. - Pongamia is excellent at preventing soil erosion, and the leaves it drops act as a wonderful soil enriching mulch. - Pongamia prefers alkaline soils. - The cost of growing 500 pongamia saplings (enough for one hectare with replacements is $US3 each. - The cost of 1kg of pongamia seeds from India is 6 Rupees (equiv to around 0.07). - Each pongamia seed should be given a 3m x 3m area to grow into seedlings. - 20% of seedlings, when transplanted, will not survive. - Pongamia seedlings yield seeds in their second year i.e. one year after planting, which are best used to grow more trees. - After the first five years, the typical annual yield of a pongamia tree is 3.5kg of beans. - Pongamia trees are productive for up to 30-40 years. - 500 trees can be planted per hectare (approx 1,250 per acre).
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

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02/10/2011

- 1 hectare should yield around 7 tonnes of seeds per year. - The oil pressed from 4kg of seeds is needed to make 1 liter of biodiesel. - 91%+ of the oil can be extracted with cold pressing. - 1 hectare should yield around 2.2-2.7 tonnes of oil. - Press cake (seedcake) left after the oil is pressed from the seeds can be composted and used as a high grade nitrogen rich organic fertilizer (green manure). The remaining oil can be used to make skin friendly soap. - One job is created for each 4 hectares of pongamia plantation. - Biodiesel costs around 16-20c per liter to grow and refine. - Glycerol, a bi-product of biodiesel refinement, can be sold for around 4570c per kilogram. - One hectare of pongamia plantation should yield a profit of 450$US at year five $US1012.50 by year ten. The following stats come from D1 Oils - the UK's biggest biodiesel company: - Crushing 1 tonne of Pongamia seeds costs around $40 (23). - 1 tonne of seedcake (the leftovers after pressing) can be sold for $100 (55). - The transport costs of shipping 1 tonne of pongamia from India to Northern Europe is about $100 (55). - The landed cost of 1 tonne of pongamia oil to Northern Europe is between $348 and $500 for oil contents of 29% to 40% (180 to 260).- Refining pongamia oil into biodiesel costs less than $125 (65) per tonne. - Filtered pongamia oil can be used as is in many diesel vehicles (as SVO) with only small modifications required to the engine. - Pongamia oil can be used as a kerosene substitute for heating and lamps. - Pongamia oil burns with a clear smokeless flame. About Abundant Biofuels Corporation. Management Team Our management team was responsible for planning, funding, and establishment of jatropha farming and biodiesel operations in West Africa. Abundant Biofuels management team is refocusing its efforts to profitably develop the rest of the world, beginning with the Western Hemisphere. The teams proven profitable approach will bring sustainable economic development to the target regions, paying a living wage to some of the poorest people in the world. Recognizing the differences among the target countries, we created a new entity Abundant Biofuels to adapt our business strategies to the particular circumstances in each of the various target countries. Abundant Biofuels principals have many years of corporate experience from startups to Fortune 500 companies. Perhaps most important is their
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

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02/10/2011

bias for action. This project is not a lab experiment, its a dynamic environment that requires fast, well-devised execution of plans and changes to them, and this team is more than up to the task. DR. CHARLES FISHEL, (Chairman and CEO) - Founding CEO and Director of Gold Star Biodiesel with a 40-year career in senior management, finance and legal roles in domestic and international entrepreneurship as well as multinational industrial ventures. JAMES LOVE, (President and COO) - Founding Vice President of Gold Star Financial LLC with more than 30 years of managing companies through all phases of development including concept, development, commercial growth, and maturity (United States and internationally). He was vice president of the U.S. Company that pioneered and developed jojoba. ABDEL SECK, (Vice President) - Mr. Seck joined Abundant Biofuels Corporation to open the Companys African Headquarters in Dakar, Senegal. Mr. Seck was born in Senegal and has spent the last 19 years in the United States. He brings with him an extensive international business experience. DON HARCUM, CPA, (Controller) - More than 30 years of management experience with CPA credentials, a degree in agronomy, and experience in forensic accounting. GARY L. TOMS, (Chief Administrative Officer) - Mr. Toms has over 30 years of experience in Risk and Insurance Management. He established the Risk Management Departments at the Fortune 500 companies of Intel Corporation, Amdahl Corporation and Anthem Insurance Companies, Inc. These departments have grown to be contributing business partners to the overall success and profitability of these organizations. RENE LACSINA, PHD, (Vice President Farming; President Abundant Biofuels Philippines Inc.) is a results-oriented international agricultural development specialist with demonstrated expertise in sustainable agriculture in tropical, subtropical, temperate and arid land production systems. He is a Certified Professional Agronomist (CPA), and a member of the American Registry of Certified Professionals in Agronomy, Crops and Soils. KEVIN C. SMITH, (Vice President Latin America) More than 30 years of experience in the energy and environmental sector involving project development and financing. Since 1992, Kevin has worked in Latin America for several companies and public agencies where he managed development of cogeneration and renewable projects in Mexico, Colombia, Brazil, and Peru. Primary efforts have been in the areas of natural gas and biomass cogeneration, methane recovery from landfills, ethanol and biodiesel fuels and wind energy projects. HANS EDSINGER, (Vice President Europe) has been interested in the
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 40

02/10/2011

production of biodiesel from Jatropha with special focus on Africa for production and European markets for off-take of neat oil or biodiesel. His business ventures provided him with experience in international trading and finance, production in emerging economies, global supply chain solutions and international brand building. TONY SETHI, (Vice President Refining) joined Abundant Biofuels from Menlo Energy and Green Line Industries where he was president and chief operating officer responsible for development, manufacturing, installation, and support of next generation modular biodiesel production plants worldwide. He has over 20 years of demonstrated leadership and general management acumen in the energy, chemicals, pharmaceuticals, and cleantech technology sectors. He has extensive application knowledge in manufacturing processes and he earned his MS (Control Systems) from Marquette University and his BSEE Electrical Engineering from Delhi University, India. MASHRUK ZAHID, (Strategic Analyst) has been driving growth-oriented strategies for industrial and retail businesses. He earned an MBA from the University of Chicago and a BA from College of Wooster. NADIR MINHAS, (Business Development) graduated from San Jose State University in May 2008 with a Bachelors of Science degree in Finance. He joined ABC in September of the same year and has been groomed by his more senior colleagues to be responsible for Business Development. JACOB DELINE, (Oil Sales) graduated from San Jose State University in December 2008 with a BS in Business Administration. He has done marketing and business development work for Indo Pacific Polymers and is working on different alternative energy projects in Australia, Peru, and the Philippines. John Jeapes Harvestgld@aol.com Tel 33 549 633 952 Press Release 02 May 2011 15:22:15 -0400 EDT BARBADOS and MONTEREY, Calif., May 2, 2011 BioJet International Ltd. and Abundant Biofuels Corporation announced their merger today. Abundant will become a wholly owned subsidiary of BioJet. Abundant and its affiliates (Abundant Habitats and Abundant Harvests) will continue to operate under the Abundant name and corporate identity. BioJet is a leading international supply chain integrator in renewable (bio) jet fuel and related co-products which include green diesel, etc. for the aviation and transportation sectors. Information: www.biojetcorp.com Abundant is an integrated renewable energy company and a world leader in feedstock development. Abundant controls more than four million hectares in ten countries in Asia, Latin America, and Africa. It has sufficient nursery seed stock to develop Jatropha plantations over the next three years
This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

Author John M Jeapes

Confidential

Page 41

02/10/2011

capable of producing more than 20 million barrels of green biofuel. The company is well known for its Philippine Jatropha project, one of the largest projects of this type in the world. Information: www.abundantbiofuels.com BioJet Chairman Mitch Hawkins said: The Abundant deal is a major step toward BioJet attaining its goal of becoming the worlds largest owner and developer of feedstock for renewable jet fuel and green diesel. Ownership and control of feedstock is the absolute key to all biofuels. The strategic additional bandwidth brought by the team and assets of Abundant form a major building block in the expansion of our Camelina, Jatropha, Algae and Biomass projects in Latin America, Asia, Europe, and Africa. This deal also fits in nicely with our plans for the recent US$1.2 Billion funding commitment we received from Equity Partners Fund. Information: www.equitypartnersfund.com BioJet operations throughout the entire biofuel value chain engage feedstock generation, technology, refining, logistics, sustainability certification, distribution, and eventual end use by the aviation and transportation sector user. BioJet is the first Alternative Fuels Strategic Partner of the International Air Transport Association. Abundant Group Chairman Charles Fishel said: The International Energy Agency projects that, by 2050, demand will reach $11-plus Trillion. Consolidation of our companies creates the first fully integrated global biofuel company capable of addressing that challenge. Fishel added that Competitors either focus solely on refining or, alternatively only on production of feedstock. BioJet will be one of the only (if not the only) international biofuels company that can control all of its feedstock. This provides BioJet with the ability to control its internal allocation of resources for a significant cost control advantage while other companies are subject to severe fluctuations in cost and availability of feedstock.

This document contains information confidential about John Jeapes and Abundant Biofuels Corporation. It is provided for the sole purpose of allowing the reader to evaluate the material here within. In consideration, on the receipt of this document, the recipient agrees to maintain such information in the strictest confidence. The recipient agrees not to reproduce or otherwise disclose the information to any person outside the group directly responsible for evaluation of its contents unless the information is publicly known through no fault of either party. All references to forecasts are estimates only and cannot be guaranteed

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