Finance Committee Presentation to PPOA Board of Directors Authorization for Expenditure “AFE” Process October 25, 2006

Introduction Authorization for Expenditure (AFE) Authorization for Expenditure (AFE) Proposal to Formalize Pecan Plantation’s Capital Approval Process Proposal to Formalize Pecan Plantation’s Capital Approval Process Overview of Proposed Procedure Overview of Proposed Procedure Benefits to Pecan Plantation Benefits to Pecan Plantation Next Steps Next Steps

Instructions Commentary: As a Minimum, Each AFE Should Have Sections on the Following: Commentary: As a Minimum, Each AFE Should Have Sections on the Following: Project Title & Type (Section II) Project Title & Type (Section II) Project Description (Section III): Project Description (Section III): Summary - How Much Are We Spending and What Are We Spending It On? Summary - How Much Are We Spending and What Are We Spending It On? Financial Justification? Financial Justification? Alternatives and/or Impact of Not Investing? Alternatives and/or Impact of Not Investing? Estimates & Cost Range Estimates & Cost Range

Instructions Summary of Financial/Project Data Quotations (Section IV) Quotations (Section IV) Method of Purchase & Project Schedule (Section V) Method of Purchase & Project Schedule (Section V) Status in the Budget/Plan Including any Variances, etc. and Related Retirements (Section VI) Status in the Budget/Plan Including any Variances, etc. and Related Retirements (Section VI) Endorsements & Approvals (Section VII)

Benefits Creates Sound Business Culture Creates Sound Business Culture Culture Transcends Individuals Culture Transcends Individuals Creates Consistency Creates Consistency Provides a Management Tool & Documentation Provides a Management Tool & Documentation Encourages Involvement Across Organizational Levels Encourages Involvement Across Organizational Levels Creates a Healthy Thought Process Creates a Healthy Thought Process

Next Steps Board Must “Embrace” Process Board Must “Embrace” Process Management Commitment to Process and Endorsement with Employees Management Commitment to Process and Endorsement with Employees Training Meetings (Finance) Training Meetings (Finance) Implementation of Process FY 2007 Implementation of Process FY 2007