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Non-Tech : Kelso Technologies VSE:KLS -- Ignore unavailable to you. Want to Upgrade?

To: Bill Potton who wrote (6)	3/5/1998 8:56:00 PM
From: John Carswell	Read Replies (1) \| Respond to of 73

In order for the JS 75 SRV to be considered by the Association of American Railroads (AAR), it had to pass testing at an independent test facility in Colorado (3 prototypes were successful in passing last December). The next phase was to present the valve and related technical and other documentation to the Tank Car Committee of the AAR. This was done in late January at one of the Committee's 2 yearly meetings. Now, it is in the hands of the Committee to review the documentation etc. and make a decision. We are led to believe that this process takes 8-10 weeks. If they approve Kelso's request for certification for testing on tank cars, we then proceed to install 25 JS 75 SRVs onto tank cars and they must travel a minimum of 5,000 miles over one year. Then, the AAR examines the valves or a selected few of them and determines how well they performed. Non hazardous materials valves take one year and hazardous valves take two years. While this is underway, Kelso management intend to pursue market opportunities in the petrochemical and oil/gas pipeline industries. Hope that sheds some light on the process. John