Statement of Qualifications

Section 2.0
Corporate History

DSM Environmental Services was founded in 1989 by Joe H. Rafferty. The company operated as a Sole Proprietorship until August 15, 1990 when DSM Environmental Services was incorporated. From 1989 to 1992, DSM Environmental Services, inc. (DSM) operated primarily as a waste management engineering and consulting company. The waste management engineering group was typical of other "Engineering and Consulting Firms" in that DSM provided regulatory compliance consulting services, assessments, permitting, environmental audits and professional services for the design, development, engineering and installation of client-specific, waste management systems. Professional services were provided on a "rate sheet / time & materials" basis.

DSM successfully designed, engineered, installed and operated numerous waste process / treatment systems including a 150 million gallon/year secondary sewage sludge treatment plant for the City of Jackson, Mississippi; a 180,000 cubic yard hazardous organic contaminated sludge in-situ bioremediation field system for the major oil and refining companies in Louisiana; a sludge dewatering and treatment plant for Anhueuser Busch Co. in Alabama; waste minimization and portable dewatering units for several national environmental remediation contractors; and NPDES waste water treatment systems for the transportation industry.

In early 1993 DSM underwent a major restructuring. Part of this restructuring was a response to two (2) important industry trends or perceptions. The first trend involved the downsizing of industry operational and support staff to become more competitive in the domestic and world markets. In the area of environmental compliance, industry staff reductions have traditionally resulted in the need to contract with environmental consulting/remediation firms to perform specialized environmental projects. The "Environmental Project" approach does little to ease the increasing complexity of the day-to-day environmental compliance, record keeping, and reporting requirements faced by Company Environmental Managers with reduced staff.

The second industry trend is more of a growing dissatisfaction with the high cost of environmental consulting services. Almost without exception, the Environmental and Consulting Industry performs project work on a "time and materials" basis. Project billing is based on the number of professionals working on the project, at rate sheet price, for as long a time it takes to complete the project. Therefore, the more professionals that bill to a project and the longer the project takes to complete, the more profitable the project is to the Consulting Firm and the more expensive the project is to Industry. This system of "Time & Materials / Rate Sheet" billing inevitably rewards inefficiency by providing no economic incentive for efficient work.

In addition, to address the needs of Industry, DSM also restructured its operation to create a DSM scope of client services that combined day-to-day environmental compliance with separate Engineering and Technical Support Groups. This integration of Environmental Services with Process Engineering and Technical Support, resulted in the formation of a "full service" Company. Concurrently, the "rate sheet" concept of "time & materials" billing, typical of environmental consulting firms, was abandoned. In its place DSM instituted a contract based, "Fixed Cost" pricing structure to our client partners for an agreed upon scope of DSM provided services.

DSM, as a full service company, is now capable of addressing the outsourcing requirements of industry and provide a unique and economic alternative to the high cost of the traditional environmental consulting industry "rate sheet / time & materials" pricing structure. The name of the environmental group was changed to "ENVIRONMENTAL PROGRAM MANAGEMENT SERVICES" to identify more clearly the new DSM scope of client environmental services. Work outside the agreed upon Program Management contract scope of services, which may include Environmental Projects, Process Engineering, and Technical Support, are also priced to DSMís client partners on a "Fixed Cost" basis. DSM normally performs no "Time and Materials" Work.

In summary, DSM provides integrated environmental programs, engineering services, remediation engineering and implementation, process technical support, and an experienced staff of environmental and technical professionals, engineers, and field technicians to assist in the management of environmental compliance programs, engineering, and other projects.

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