Contents
On The Road
It has been over two months since an update has gone out for several reasons, the main reason being that I am on the road trying to find out exactly where in this great country I want to call home. I apologize for the delay, from the emails I have received, a lot of you good folk are worried we have all been locked up or killed, not so. The company has been so occupied trying to fight legal battles with Paul Pantone and eight State AG offices that it makes it very difficult to progress. With the lack of foundation in any of the charges, it is pretty obvious what their intentions are, still motions have to be filed and appearances made or you lose by default. Great Just-Us system they have devised to protect themselves and shear the sheep.
Paul Pantone and GEET
As Paul has been bragging all over the Internet, he was awarded a injunction against UCSA / BWT by a Federal judge in Salt Lake City. This hollow victory for Paul was based on deceit and skullduggery, not on the merits of his case or the facts of what had transpired. Notice was sent to 7 or 8 individuals at UCSA by his attorney, all packaged in the same box with first class postage, addressed to the company with no attention to anyone, and no notice the package contained legal documents. The package ended up in the mail room where it sat for a week before someone got around to opening it, that was the same day as the hearing. Needless to say, the judge granted the injunction based on the fact no one was there to represent the defendants.
Dennis and his counsel was in Salt Lake City at Federal court on January 17th and explained why no one was present at the earlier hearing. Upon hearing the circumstances involving the service process, the judge delayed the proceeding for ten days to allow UCSA the time needed to present their evidence and affidavits in regards to what actually transpired between UCSA and GEET.
We expected to be converting a large number of America and Canadian cars by this time through a well trained network of mechanics. Thanks to Pantone's failure to even put forth the slightest effort to honor his contract obligations, that has not happened. Also, thanks to Paul's short comings, we now have 4 different ways to roast the same pig at about a 1/3 of the cost and installation time to our patrons.
Stay tuned, we have some surprises for Mr. Pantone, UCSA, unlike Paul, keeps very accurate records, especially regarding payments on contract obligations. All subscribers to the Tech Update will be kept informed.
Engine Modification Updates
BWT is currently researching 4 different technologies for modifying engines not including the GEET technology we first introduced. The new method of conversions is being referred to as the TEEG (opposite of GEET) conversion. As of Jan. 18th there has been 6 vehicles converted at the New Jersey Training Facility and we are experiencing a 300 to 500% increase in mileage. The 300% would be running on a straight fuel mixture during cold weather and the 500% in warmer weather with a fuel water mix. The TEEG is also based on a plasma reaction, but will be a much simpler installation in that there is no rod assembly to be maneuvered into the exhaust system. The TEEG will be compatible with all three fuel delivery systems; carbureted, throttle body and port injection. The team is working very long days tweaking the technology with the goal of producing a universal reactor assembly that will be easy to manufacture and adaptable to all applications. As you can imagine there are numerous problems to overcome like unit placement (not much spare room under a lot of those hoods) and the different fuel ratio requirements to name just two. The word from UCSA is that we expect to have everything worked out and ready to manufacture parts kits within the next 60 days. The goal is to get the parts kit down to around $500.00 total cost to the patron and that will include the license and plans. That's a third of the projected cost of Pantone's GEET system. The installation time will also be greatly reduced to around 2-3 hours per conversion.
We are also working on a TEEG system for the big diesel tractor trailer rigs, while we still have some major tweaking to do we are already experiencing a 30 - 50% savings in the big rigs. For a rig that gets 6-8 mph it would not take long to recoup a projected $1,500.00 investment!
By mid to late summer 2002, we expect to have trained mechanics in all 50 US states and 16 Canadian Provinces to provide a local conversion facility for the general public. UCSA dealers will be notified as the certified mechanic database is established, subscribers of this Tech Update will be notified as this service becomes available.
Engine Conversion Training
UCSA is beginning their training courses for qualified mechanics for all of North America, the first class is to be held on January 28th through February 1st. The first two weeks of training was for UCSA dealers (Jan. 7th - 11th & 14th - 18th classes). The third week (21st - 25th) will be spent fine tuning everything and modifying the trainer's vehicles. The public may attend training beginning with the Jan. 28th to Feb. 1st class as an invitee by a UCSA dealer in good standing. You do not have to be a professional mechanic to attend and with prior approval you may modify your own car / pickup at the school (there will be an additional charge for the parts). The cost for this training is $ 1,250.00 payable in advance 7 days prior to attendance. A new class will commence every Monday and run through Friday at our New Jersey facility in Butler. You will be responsible for your own transportation, lodging, and meals. Upon successful completion of this training, you will be certified as either an installer or a trainer. As this is a new and evolving technology, all certified graduates will be kept updated via video tapes, as major enhancements are achieved, at no additional cost to the graduate. Certified trainers may be required to return to New Jersey periodically to maintain their trainer status.
I plan to attend the conversion training myself this May (after the weather warms up just a tad), I am driving a GM 454 cubic inch (7.4 liter) throttle body injection and do not pass many gas stations.
Conversion Mechanics
If you are a professional mechanic with your own shop, this UCSA dealer is seeking qualified people to start the conversion process in America and Canada. All certified installers / trainers in this technology must work in conjunction with a UCSA dealer. We are now in the process of authoring a contract that will spell out the exact relationship and obligations of both the installer / trainer and the UCSA dealer they are associated with.
Live Short Wave / Internet Broadcast
Dennis will begin a new live radio broadcast every Saturday afternoon from 5 to 7 PM Eastern Time beginning this next Saturday on January 26th. It will be available live on Christian Worldwide Short Wave Radio Network at 5.070 and on the Internet at Soundwaves2000. The format will be much the same as before on Truth Radio with Dennis updating the public the first hour and taking your calls the second hour.
TF Sealant (Dirtcrete) & Village Builder
There is now a Question & Answer page on site for the TF Sealant product and it's companion The Village Builder. Due to the large number of requests for more information on TF Sealant, formerly known as Dirtcrete, everything I have received from the company is now on site. The Village Builder is a companion product in the form of trailer mounted equipment that produces compressed building blocks made from your own dirt and TF Sealant. The manual unit will produce 210 - 230 blocks per hour with the automated unit kicking out 300 blocks per hour. The blocks may be used immediately or stored on pallets for future use. More information on the Village Builder page.
Kentucky Demonstrations
Despite Dennis being arrested before the scheduled demonstrations on October 8th of 2001 (Tech Update of 10/15/01), they were rescheduled for December 28th. The demonstrations went off without a hitch at the Galt House Hotel in Louisville. Due to the prior arrest and $50,000 cash bond being held on Dennis, Alison (Corporate Secretary, UCSA) conducted the demonstrations and there was no interference by the State Attorney Generals office.
Dennis was at court again in Kentucky on January 23rd for a preliminary hearing. It will be interesting to see if they feel they have enough evidence to proceed when the man was not even allowed on stage. As you may remember from an earlier update (Tech Update of 10/15/01) the charges were 1) Failure to display a business license, 2) Failure to register a business office in Kentucky ($75,000 bond required), and 3) Misrepresentation of a business opportunity (NASDAC).
Stay tuned, this is only one of the legal battles we are having to fight, the powers that be are doing everything they can to distract us, drain our resources, and impede our progress.
Update on the State�s AG�s
The information provided below is from my current understanding only and may change at any time. Legal action is now being explored to remedy the following restrictions.
As of now the following still stands, I have heard all the restrictions for the states of Washington, Alaska, and New Mexico will be removed, you will be notified via this forum once I have received written confirmation from UCSA.
Restrictions on the Free Electricity program as follows:
Maine and Vermont citizens may purchase any UCS of A literature item only (offer ended 4/24/02). People living in the states of Washington, Oregon, Alaska and New Mexico may purchase any UCS of A product or UCS of A literature item. I cannot issue a registration to anyone in the above mentioned 6 states at this time. All folks that qualify will be added to a database until the legal harassment in their particular state is resolved. If you are already registered and have received your certificate, this does not apply to you.
If you live in one of the 6 above mentioned states, please do not send any donation to be registered, I will have to return it to you. You may just purchase any literature item, or product as outlined above to be added to the database. Please be sure to note on your order "Hold me a registration in your Free Electricity program". Your certificate will be issued once the legal harassment in your state has been dealt with.
The COBI Program
For all of you who joined the COBI program during the '99 Nationwide Hummingbird Motor Tour, you have not been forgotten. Due to the work load at ITEC, most of you have not yet received your certificate, but be assured that your information has not been lost. If and when we are able to release Free Electricity, the COBI holders will be the first in line to receive a Sundance Generator on their homes.
In The News
Enron made a sound investment in Washington. Company spread cash to open doors, change rules.
By Jim Drinkard and Greg Farrell USA TODAY
WASHINGTON -- As Enron imploded last year, its cries for help from the Bush administration went unheeded, leading many to conclude that the company's heavy spending on politics and lobbying was just another bad investment.
But in reality, Enron's decade-long run as a Washington influence broker was highly successful. The company's aggressive lobbying drove the deregulation of markets for energy and other commodities that allowed it to escape scrutiny and outdistance its rivals. Its dominant position in the new market of energy trading helped it obscure the questionable investments and dubious accounting that led to its death spiral.
''They got a lot for their money," says James Thurber, who teaches lobbying at American University in Washington. "Their influence over keeping things off the public agenda was profound.
Lobbying works best when carried out at the obscure margins of public policy, where there is little public interest or understanding. Enron's goals -- achieving a zone of freedom from regulation in the arcane areas of commodities and futures-contract trading -- fit that rule perfectly.
Its plunge into bankruptcy court has Congress, the Justice Department, tort lawyers, creditors and employees all demanding answers. As Congress opens a long season of hearings today -- a day after Enron Chairman Kenneth Lay resigned -- one question looms largest: Did Enron's ability to operate outside the harsh regulatory spotlight that shines on Wall Street, stock exchanges and commodity boards allow it to trip in the shadows of its own unregulated marketplace?
Don't expect a quick answer. Investigators won't know the truth behind Enron's collapse until they have sifted through all of the firm's internal books and grilled the company's embattled senior executives. Until then, Congress has to wrestle with an uncomfortable fact: Over the last decade, Enron achieved much of what it wanted by getting members of Congress, the White House and federal regulators to advance its agenda.
It didn't attain every goal. But Enron got enough favors from government to allow it to create its own unregulated marketplace for the buying and selling of energy futures contracts and a host of other products. The company's message to the public, in a slick TV ad campaign touting its innovative spirit, was "Ask why." But its message to government overseers often seemed to be "Don't ask."
Congress now will start asking hard questions, beginning with hearings today before the Senate Governmental Affairs and House Energy and Commerce committees. At least four more panels will hold hearings in the weeks ahead.
"I'm hoping we'll see a national debate over what's best for consumers and the American economy," says Glenn English, a former Democratic congressman from Oklahoma who now heads the National Rural Electric Cooperative Association. "Is there a balance to be struck between regulation and the free market?"
Even those predisposed against Enron are reluctant to blame deregulation for the company's downfall. "At the end, it's not going to be found that trading in a deregulated world brought them down," says Neal Wolkoff, executive vice president of the New York Mercantile Exchange, a highly regulated energy commodity market that stood to lose business to Enron's trading operations. "Sometimes it's not a lack of rules, but a lack of people following rules."
How to buy influence The story behind Enron's transformation from staid energy company to America's seventh-largest corporation is a case study in how to use legally available tools to buy political influence, then apply it to create new market opportunities.
Starting in the mid-1980s, Lay realized that no matter how well his company did at producing and transporting natural gas, there was more money to be made buying and selling it as a commodity. By the early 1990s, he wasn't alone. Several corporations -- including oil giants Exxon and Mobil as well as J. P. Morgan and Chase Manhattan -- were clamoring to get into the energy futures market.
In November 1992, some of those companies asked Wendy Gramm, chairwoman of the Commodity Futures Trading Commission, to exempt energy derivative contracts and related swaps from government oversight. Gramm acted quickly, scheduling a vote on the rule for January 1993, days before the Clinton administration would take over. Boosted by her support, the proposed rule passed.
A Republican appointee and wife of Texas Republican Sen. Phil Gramm, she stepped down when Democrat Bill Clinton took office. A few weeks later, Lay asked Wendy Gramm to sit on Enron's board of directors and be a member of its audit committee. She was initially paid in company stock, which she cashed out for more than $200,000 in 1998. Since then, she has made $50,000 a year in director's salary, plus thousands more in attendance fees. She lost another $686,000 in a deferred compensation fund when the company went bust.
Despite the appearance of a trade-off, even Gramm's critics concede that the commission's ruling was a smart move. The energy derivatives market was growing rapidly, and there were worries that without an exemption, the Chicago Board of Trade might sue anyone selling an energy derivative outside of its centralized market.
"I think her motives and actions were forthright," says Richard Breeden, a former chairman of the Securities and Exchange Commission who clashed with Gramm on a variety of issues.
Enron's victory before Gramm's commission marked a significant step forward in its transformation from an energy company into a trading company. It envisioned a world where energy contracts for electric power, oil and gas could be traded, swapped and sold just like stocks. But while gas and oil were commodities that could be shipped and sold across the country, electricity was another matter.
Regulatory victories
Enron lobbied Congress to deregulate the electricity market nationally, but those efforts were doomed by strong opposition from regional utilities. So Enron adopted a two-tiered approach to electricity deregulation: It lobbied aggressively at the state level while getting the Federal Energy Regulatory Commission to adopt rules that favored its interests.
The strategy began paying off in 1996 when federal energy regulators adopted a new rule, Order 888. The rule forced reluctant local utilities to open transmission lines to power being shipped from one state to another. In effect, Order 888 turned the nation's electricity transmission grid into an interstate highway system for energy.
With this infrastructure in place, Enron worked hard at the state level and got California, Massachusetts, New York and Pennsylvania to deregulate their electricity markets. When they did, Enron was at the center of a new market for wholesale electric power. It bought power from generators across the country and sold it to utilities in the deregulated states, using the newly deregulated transmission grid.
In December 1999, Enron won another significant decision from federal regulators: Order 2000. Under this order, the commission asked local electric companies to join "regional transmission organizations" to coordinate the flow of power from state to state. That led to a less cumbersome system of electricity transmission, eliminating some of the "tolls" on the energy superhighway and making the trading of energy contracts even easier.
The final step in Enron's transformation into an unregulated commodities exchange was the Commodity Futures Modernization Act. This law, quietly tacked onto a spending bill and passed Dec. 15, 2000, allowed Enron to expand its online futures trading operations. As a result, Enron Online, a commodity exchange run out of Enron's Houston headquarters, could compete against the Chicago Board of Trade and the New York Mercantile Exchange without submitting to the same level of oversight.
Two powerful Republicans from Texas, Reps. Dick Armey and Tom DeLay, were instrumental in pushing the legislation through the House. DeLay's wife, Christine, worked for a lobbying firm, Alexander Strategies, that Enron had hired for up to $200,000 a year to push energy deregulation.
Along the way, Enron also won hundreds of millions of dollars in federal subsidies to help finance its overseas investments.
From its base in the natural gas business, Enron had completely transformed itself into a middleman in markets from electricity to water, broadband capacity and newsprint. It even explored trying to break the railroad monopoly by turning rail capacity into a commodity that could be brokered by outside traders.
"They were a path-breaker when it came to the use of the futures markets and derivatives," says Dan Reicher, a former assistant secretary of Energy in the Clinton administration. "It allowed them to take a traditional industry and turn it into something different, finding new places to add value and make money in what used to be fairly standard, boring transactions."
Enron also had success lobbying the Securities and Exchange Commission. In 1994, it received an exemption from the Public Utility Holding Company Act. The Depression-era law was designed to prevent utilities from owning multiple plants in one geographic area, allowing them to jack up rates.
As a power producer, Enron's plant holdings were small. But as a power marketer, it was a force. It could buy enough energy-futures contracts in a region to create a virtual monopoly. Nevertheless, the commission issued a "no-action" letter that allowed Enron to sidestep the law's anti-monopoly provisions.
In 1997, Enron won an exemption from the Investment Company Act of 1940. The exemption allowed Enron to treat foreign power plants as investments, which let it leave debt from those power plants off its books. It is now known that Enron created more than 3,000 limited partnerships and other entities, many based offshore -- a revelation that led to the company's downward slide last fall.
Spreading money around
In Washington, Enron threw money around in a way that helped gild its aura of success.
Since 1989, it has spent $5.9 million on federal politics, including $3.5 million in unregulated "soft money" gifts to the national political parties. The company's giving has favored Republicans, who share its free-market ideology, a trend that intensified after the GOP won control of the House and Senate in 1994. Over the past 12 years, 74% of Enron's largesse has gone to Republicans.
The company was President Bush's largest benefactor, pumping $1 million into his campaigns for Texas governor and president and his inaugural celebrations. While the administration worked on a new energy policy last year, Enron had six private meetings with policymakers and saw many of its goals included in the final document. The White House won't say whether any other interested party had as many contacts. Bush economic adviser Lawrence Lindsey and Trade Representative Robert Zoellick are former Enron advisers.
Enron and Lay had worked hard to forge ties with previous administrations. Lay played golf with Clinton, and one of Clinton's top advisers, Mack McLarty, later joined Enron's board. Lay was also close to former president George Bush and spent the night at the White House during his tenure.
Since 1996, Enron has spent more than $7 million to run its Washington lobbying office and hire dozens of well-connected lobbyists. Among those who have worked for the company are Marc Racicot, just named by Bush to head the Republican Party, and former senator J. Bennett Johnston, a Louisiana Democrat.
Beyond those traditional lobbying approaches, the company rarely passed up a chance to do favors for the powerful who were the gatekeepers for its deregulatory goals:
* Enron paid for fact-finding trips for members of Congress and their staffs.
* Its name was ubiquitous at the 2000 Democratic and Republican national conventions as a sponsor of parties for senior politicians. The company was one of the secret sponsors of an opulent string of rail cars DeLay maintained as a private getaway for lobbyists and House Republicans near the GOP convention center in Philadelphia. It helped pay for an elaborate Mardi Gras party on the back lot at Paramount Studios in Los Angeles for Sen. John Breaux, D-La.
* Lay was a $250,000 sponsor of the GOP's fundraising gala in Washington in April 2000. He also helped raise money for a literacy charity headed by Barbara Bush, mother of the president.
Enron's spending didn't just help push changes the company wanted, says American University's Thurber. It also bought the company safety from the scrutiny of regulators and Congress.
"They had so much money that was flooding so many places," he says. ''That helped them immensely in keeping off the agenda.
That's all for now, thank you for your continued interest and support...
Jeff Otto, Secretary of Jeffotto.com Ltd.
Overseer of His Covenant Ministries, and his successors, a corporation sole
"There is not enough darkness in all of creation to snuff out the light from a small candle"
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