. . . Roice Nelson, 10 January 2001

. . .

From rnelson@walden3d.com Sat Feb 10 11:33:07 2001 Delivered-To: rnelson@walden3d.com Date: 10 Feb 2001 17:33:06 -0000 From: rnelson@walden3d.com To: BENTZ@bentz-engineering.com, aboulang@ldeo.columbia.edu, leee@neosoft.com, mroulston@pdq.net Subject: Re: Thoughts Cc: rnelson@walden3d.com X-Status: $$$$ X-UID: 0000001318

Albert, Bryan, Lee, and Marc,

I've been thinking about the infrastructure issues for some time. It was good to talk to Albert, Bryan, and Lee Thursday, and I drew out some thoughts and went over them with Marc Friday. So this note is to respond to Bryan's note, and to attempt to put in words the picture that is in my mind relative to infrastructure.

First some philosophy.

Dynamic was formed to explore for natural resources in exchange for a % of what is found. To do this we will use the best people and the best technology available. These people and technologies form the Dynamic Professional NetWork. Dynamic will document everything and share it with the NetWork. Using web terms, where the network is the computer, the NetWork is Dynamic. Dynamic is not Roice Nelson, Richard Nehring, Bob Ehrlich, Sam LeRoy, Heloise Lynn, etc., rather it is the synergistic interaction among NetWork members and technologies.

There are several key players in the NetWork, some of whom have been given an opportunity to have an ownership of Dynamic:

01. Walden 3-D, Inc. and Roice Nelson, geophysics and team creation: Katy; 1 Power PC and 1 Sparc-10. 02. NRG Associates and Richard Nehring, database and a contractual commitment for 21 new exploration concepts in 2001: Colorado Springs; PC's, one dedicated for e-mail and web browsing. 03. Residuum Energy and Neal Brossard and Bob Ehrlich, data base cleaning, data mining, structural maps, and geohistory maps: Dickenson, TX and Salt Lake City, Utah; PC's. 04. EarthView Associates and Sam LeRoy, dynamic pressure shields and Team Leader Gulf Coast AOI: Westheimer in Houston; 2 PCs. 05. Lynn, Inc. and Heloise Lynn, azmuthal anisotrophy: Westheimer in Houston; PCs and Sun Sparc. 06. CES, LLC. and Roger Andreson, 4-D seismic, portfolio analysis, and suitability matrix: New York and Houston; SP2, IBM supercomputers, Suns, PC's, PowerMac, etc. 07. vPatch and Albert Boulanger, portfolio analysis, infrastructure, and visualization: New York and Houston; SP2, IBM supercomputers, Suns, PC's, PowerMac, etc.

There are others who are closely aligned with Dynamic, who will subcontract or work on projects for Dynamic, and who might get an opportunity for an ownership position at some time in the future:

08. Resource Technology and Dick Coons: Katy; multiple PC's working in a Beuwolf mode. 09. Klaveness Research and Alf Klaveness: Beltway and I-10 in Houston, no computers. 10. II&T and Dave Agarwal, Les Denham, and Robert Horner: downtown Houston, a dozen suns, and some PC's, 1 Landmark license, and a dozen GeoQuest licenses. 11. Infomanagement and Blaine Taylor: Rosenburg, TX; PCs and process modeling software as well as logging and drilling experience. 12. Mike McCardle; Houston, TX; seismic interpretation experience. 13. Energy Hunters and Ed Gray: Salt Lake City, UT; PC and experience finding oil and gas. 14. Mountain Eagle and Riley Skeen: Cody, WY; PC and experience finding oil and gas. 15. Applied Geophysics and Parker Gay: Salt Lake City, UT; PC and dozens of basement fault block Leads and Prospects. 16. Sautec and Christian Singfield: Brisbane, Australia; PC's, technology to scan cores and cuttings, and technology for handling TB of GB tiff image files and distributing them across the web. 17. Workstation Integration and Lee Ethetton and Marc Roulston: Katy, TX; system maintenance, upgrading, and solutions. 18. Bentz Engineering and Bryan Bentz: Conn.; PC and UNIX systems and experience in web security and systems development. etc.

One of the issues with the NetWork is to not let it grow too big before there is infrastructure and procedures in place. The goal is to be able to easily add and remove people from the NetWork, and when someone is removed to reset the NetWork and security so their are no compromises for those who are still participating. As Marc points out, I firmly believe that insufficient management of the NetWork up front will create lots of data which no one knows the quality of nor the value of. When the first project goes on-line there needs to be procedures in place to measure and monitor who accesses the project, who updates data files, what the value of those data files is, and allows project back-up, storage, purging from the system, etc. This same automatic cataloging of data type of process needs to occur within the offices of some of, or maybe most of, the members of the NetWork.

Given this background thinking, to Bryan's question:

> Perhaps Roice could start this by giving us a few bulleted points as > to what will need to be available as far as infrastructure at the end > of the first year. We can then go back and forth with questions, and > successively refine our thinking. Dynamic Professional NetWork: -NetWork Software, Policy, Procedures, Encryptions, Security, etc. enclosing: - Site 1 - Applications, Encription and Security - CPU 1 - CPU 2 . . . - CPU L . . . - Site M - Applications, Encription and Security - CPU 1 - CPU 2 . . . - CPU N - Lotus Notes or equivalent NetWork database allowing whiteboarding, replicatable, shareable database for shared e-mail, MS/Word, MS/Excel, images, Applications from various NetWork members, etc. - Automated, or at least semi-automated Indexing of NetWork Projects, Knowledge, Information, Data, Project Reports, Best Practices (Skills, Resources, Processes, and Solutions), Case Histories, etc. - Suitability Matrix(SM), formulas and variable input which define Dynamic's Business. - Infinite Grid(SM), spatial indexing (check out

http://www.walden3d.com/E and www.walden3d.com/dynamic/AMI007

- Timedex(SM), temporal indexing (overlaying each spatial index and a function of: - Geologic Time (millions of years) - Historical Time (thousands of years) - E&P Project Time (tens of years) - Dynamic CLP Project Time (months to years) - NetWork Time (minutes to months) - Knowledge Backbone(SM), activity indexing, see

http://www.walden3d.com/knowledge_backboneSM

Right now, by the end of the first year Bryan's estimate that there be five sites on-line fits:

- Roice's home office and primary web site: Walden 3-D, Inc., 1307 Emerald Green, Houston, TX 77094, 281.579.0172, URL:

http://www.walden3d.com

- Dynamic's show and tell office, downtown Houston: II&T, Inc., 1221 Lamar, Suite 1305, Houston, TX 77010-3037, 713.650.0325, URL:

http://www.iiandt.com

- Central Salt Lake office for Residuum, Parker Gay, Ed Gray, Riley Skeen, and possibly Dick Coons: Applied Geophysics, Inc., 675 South 400 East, Salt Lake City, UT 86111, 801.328.8541, (note Parker's triplets run a major ISP in Salt Lake and are moving it to be housed in Parker's office of the last few decades), URL:

http://www.appliedgeophysics.com

- Infrastructure system control Houston: Workstation Integrations, Inc., 22028A Highland Knolls, Katy, TX 77450, 281.392.6700 - Infrastructure R&D, security and applications development: Bentz Engineering, 80 Wilcox Road, Stonington, CT 06378, 860.536.1477, URL:

http://www.bentz-engineering.com

I realize the key to Dynamic's success is at NRG Associates in Colorado Springs, Residuum Energy in Dickinson and Salt Lake, Chroma Energy in Sugar Land, EarthView Associates, and Lynn, Inc. near Westheimer in Houston. Each of these sites will have data and will be doing the real work, and they may choose to or not choose to get involved with the Dynamic Infrastructure. They each have the ability to do their work currently, to ftp files, or to put presentations on CD's. I do not want to distract them with this infrastructure stuff until it is proven to be working, until we know how much it is going to cost, what the measurable benefits are, and until each site is signed up to the cost and hastle of implementation.

For instance, Peter King at Cohere Technology, 713.688.0100x327, has an interesting distibuted solution based on storing data at central sites and allowing others to access this data via fiber from any other site. This is particularly useful for seismic data and some of the large arrays which will be used by Residuum. It is expensive, and yet the volumes of data Dynamic will be using can justify the expense if we are as successful as we anticipate. I like the idea of a mesh, where each node in the Dynamic Professional NetWork has the option to be connected directly to each other node in the Dynamic Professional NetWork, based on what the relationships between the nodes will be.

Anyway, hopefully this answers Bryan's questions and can be the start an infrastructure discussion for Dynamic. As mentioned on the phone, I do have a $200,000 budget in mind for this kind of work out of the first $2 million investment for the Gulf Coast AOI, and I expect Sam, as the Team Leader, will want to cut down on this infrastructure budget. Especially if he doesn't feel it provides him any benefit to run his project. Therefore I think it will be worthwhile to mature this discussion, maybe with some specific web page presentations as soon as possible. I will introduce the NetWork to ../dynamic/infrastructure after a couple of more e-mail iterations of the concepts. I expect lively discussion when we bring up the idea of a NetWork "tax" to cover infrastructure costs, and it is important to have our part of the conversation based on specific quantifiable measures of what the benefits or the return on this expense will be. It is my intention to use profits from Dynamic's success to implement new ideas, tools, procedures, etc. for Dynamic, for NetWork members, as well as for humanity (sorry if you didn't know what an idealist I was before this last sentance). We are having the next meeting of the NetWork from 10:00-2:00 on Friday the 23rd of February at II&T in Downtown Houston, and this is probably the ideal forum to introduce the discussion.

I will post this e-mail at: http://www.walden3d.com/dynamic/infrastructure along with the conversation which follows. Bryan, Lee, and Marc, I would like to get a signed copy of the Confidentiality agreement before we go too far on this path (http://www.walden3d.com/NetWork/NetWork_Confidentility.pdf).

Best Regards, Roice rnelson@walden3d.com; 281.579.0172; cell: 713.542.2207; facsimile: 281.579.2141 Dynamic Resources Corporation

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