II NAVAJO - CURRENT STATUS First, and certainly of primary importance to our long range outlook, was the signing of the Letter of Intent in May relative to the Navajo II Fuel Agreement. Negotiations relating to this agreement have occupied a good deal of time and effort during the past two years, probably necessarily so in view of the magnitude of deliveries which the agreement provides for and the long term of its duration --35 years and extendable to 50 years at the buyer's option. While there still remain a few legal problems to be resolved before the Agreement is signed, we are confident that these will be worked but in the very near future. As you know, this agreement will provide for fueling two new generating units totalling 1510 MW capacity which will be constructed at the Four Corners mine site with the first unit to be in operation in late 1969, and the second in 1970. When both of these units are in operation, our annual i II - Cont'd. coal production will have increased from 2. 6 million tons annual rate at present to 8. 6 million tons, and revenues from that operation will increase in about the same proportion. Utah presently is doing the excavation work at the plant site, and the dedication ceremony for the new facility is scheduled for October 11th of this year. I might add that even with this expansion, less than half of our total estimated reserve of 750 million tons is committed, and we are hopeful of developing additional sales from the Navajo Mine.