Welcome to the first Circle C Oyster Ranchers Association Inc. newsletter. This communication will be sent out following every other Circle C board meeting in order to keep our investors current with the proceedings and developments of, not only Circle C, but also of the aquaculture industry on the local, state, and international levels as well.

   We, the directors of Circle C, maintain the view that well informed shareholders are fundamental in making Circle C prove to be one of the most lucrative investments in the aquaculture industry.

   The format of the newsletters will include a "Word" from the CEO; excerpts from the most recent board meeting; entries from the directors; a 'developments in the aquaculture industry' column; letters and advice from Circle C ranchers; and a 'for your information' section with related events and educational items.

   I would also personally invite input and suggestions from you - our stockholders - so as to improve the quality of this newsletter and, in turn, the Circle C organization.

   Thank you for your time and continued support.

   As CEO of Circle C and for me personally, there has never been a more exciting time to be in the Aquaculture industry and, more specifically, involved with the many new developments in oyster growing.

   First of all, as many of you know, we have been so busy with the growth of our business, the addition of new ranchers and new accounts, and the continual expansion of our political agenda, that we have been operating without an active board of directors for some time. As president of the company I took it upon myself to ask several associates to serve on the board and act as directors until elections could be held-in accordance with company bylaws. I have no doubt that our stockholders will be very pleased with their performance and vote for them to continue serving our company. Without exception, the members can be described as engaged, intelligent, highly motivated, and enthusiastic individuals with a broad range of experience, all of whom share the Circle C vision. With these directors, I now feel confident in taking our company to the next level.

   Secondly, we have patented our Circle C floating oyster reef systems as 'Biological Nutrient Control' systems (BNC) for removing and managing certain nutrients within the water. This BNC system is fully protected under U.S. Patent number 6,391,201 B1, which is good until November 9, 2020. Short-term international protection remains in place while we decide in which countries to export this technology. We will work to identify those overseas businesses we wish to license. BNC exists because, for the first time, it gives managers solid control over open water nutrient levels. Working like a thermostat, the desired levels of fertility can be set and maintained to optimize the productivity of areas like the Chesapeake Bay. This is equivalent to what happened within the farming industry, so now we may look forward to similar improved gains from our estuaries, lakes and rivers.

   Again, it is an exciting time and I am pleased to be able to share my enthusiasm with our stockholders and friends.

   Formalization of the board and defining the areas of representation for the members was the main theme for this meeting. The new board and corresponding areas of concentration is as follows:

   The secondary issue was discussions on the BNC (biological nutrient control) and incorporating into the existing Circle C business plan. This is a rather involved and sensitive subject and will be discussed in more detail in future meetings and newsletters.

   Also discussed was ways to educate politicians, bureaucrats, and the general public about the advantages of supporting aquaculture for the environment as well as the economic stimulus it is capable of producing. This inspired Don Statter to get the Ehrlich campaign to visit the Circle C ranch - well done Don!

   It was unanimously decided to create this newsletter and work to keep our stockholders and ranchers more informed about Circle C.

   Overall it was a positive gathering and the personalities of the board members melded together extremely well. We were all optimistic about future meetings and all the possibilities for the Circle C Corporation.

   As a new member of the board I want to say that I am very gratified to be part of the Circle C Team and will do everything in my power to support the interests of the Corporation and its stockholders. We are at the starting point of a new industry. To understand our potential for the future we need to refer back to the industries that transformed our civilization with new modes of transportation and communications over a century ago. Cars, trains, and phones are now a major part of our lives. The new industries that will impact the next century and create new wealth will be related to environmental improvement.

   With hindsight we look back and think the success and growth of the new industries of the 19th and 20th Centuries was a forgone conclusion. But beyond capital development and market potential, new industries also need political support. Trains, automobiles, and telephones were not always politically popular or universally legal because rails, roads, and poles impact the look of the landscape. Oyster aquaculture has related problems and we have a legislative agenda to address these issues.

   Regulatory bureaucrats continue to be a serious obstacle to our growth and success. But elected political leaders appear to have visionary interest in supporting the aquaculture industry. On May 16, 2002, the Governor of Maryland signed into law HB-1098, sponsored by Delegate Anthony O'Donnell, District 29C, that gives a $500.00 tax credit to home owners that purchase floating oyster reef systems. This bill passed unanimously through both houses of the Maryland legislature. The goal for next year's legislative agenda is the passage of a bill that will regulate the use of floating oyster reefs as Biologic Nutrient Control (BNC) devices for the removal of harmful nutrients from the Chesapeake Bay. Richard Pelz, Circle C Director, now holds a patent (US 6,391,201 B1) on this technology.

   A floating oyster reef deployed with the intent for commercial harvest generates a net profit of approximately $100.00 for the farmer each year. The same system deployed for use as a BNC device is estimated to be worth well over $1000.00 each year. The bill we have in development will remove the bureaucratic hurdles associated with the deployment of floating reefs by regulating BNC systems as minor public utilities much like a telephone pole or a traffic light. The profit potential for floating reefs as BNC systems is enormous. Persons that weren't necessarily interested in floating reefs for food because of the modest income potential will be compelled by the enormous profit potential of floating reefs as BNC systems. And Circle C holds the patent.

   Circle C has taken the approach that since it controls the oyster strain, the patent on BNC, has a HACCP plan and is in a good position to negotiate the seed production and processing, it will contract out the hatchery and processing of the oysters to a start up company called Patuxent Oysters, Inc. Patuxent Oysters is pursuing several alternatives for sources of seed, from State to private both in and out of the State of Maryland. Current efforts are focusing on determining the best approach since the Department on Natural Resources last winter turned us down. Patuxent Oysters made a foray to procure a facility and business called American Soft-shell Crab Company on St. Jerome's Creek. However, it became obvious that the sources of funds were not materializing so Patuxent Oysters has terminated that effort for the time being.

   If and when Patuxent Oysters becomes a viable operation, Circle C will have 50% of the stock in Patuxent Oysters and for that will provide its seed production technology and broodstock for the oyster seed production. Circle C will continue to manage the ranchers and growers and will contract with Patuxent Oysters to process the oysters for the consumer market. Circle C will be the outlet for the retail and wholesale markets for the oysters processed by Patuxent Oysters.

   Initial funding opportunities have been stymied but Patuxent Oysters is continuing their search for grant funding for the project.

Let's hear from our ranchers! Email me at chipcropper@myexcel.com

Ridge, MD - One hundred enthusiastic voters greeted Gubernatorial candidate Bob Ehrlich as he arrived at the Circle C Oyster Ranch on St. Jerome's Creek in St. Mary's County. The crowd was energized as Mr. Ehrlich explained that he was confident of victory in November as he encouraged the crowd to continue to work toward his election; and the re-election of District 29C Delegate, Anthony O'Donnell. But Bob Ehrlich was not the only point of interest at the event as many of the visitors wanted to learn more about the oysters that are grown at the largest aquaculture facility of its kind in the state of Maryland.

Mr. Ehrlich and the crowd came down to see the future of how oyster aquaculture will be used to clean the Bay environment, produce food, and generate new wealth for the citizens of Maryland. The Oyster Ranch is a single long pier with approximately 100 floating oyster reefs that contain a total of 100,000 oysters. These oyster reef systems filter and clean 5,000,000 gallons of Bay water each day. The gross value of the oyster crop as food from this 1/10th of an acre facility is $50,000. But the real wealth generating potential of this technology is from the Biological Nutrient Control? (BNC) aspect the floating reef systems. A facility the size of the Oyster Ranch has the potential to generate $167,000 in BNC system income. If you extrapolate these numbers over a broader area you realize that oyster aquaculture has the potential to generate over $2,000,000 per acre, per year.

What is BNC and how does it work? Point source discharge pollution sites such as sewage treatment plants are currently paying an average of $28/lb. for the removal of nitrogen and phosphate nutrients. A floating oyster reef, such as a BNC system, can profitably and effectively remove nitrogen and phosphate nutrients from the water column for as little as $8/lb. The concept for this new approach, called nutrient trading, is described in a US Environment Protection Agency document titled "Proposed Water Quality Trading Policy". This EPA document encourages market based solutions that use nutrient trading methods to reduce the cost of improving the environment. Floating oyster reefs used as BNC systems could remove Maryland's current nutrient load at an estimated cost of $320 million, or 28% of the $1.12 billion needed to remove the nutrients using traditional methods. BNC trading with floating reef systems is a new industry that will create enough wealth for over 4000 new jobs in aquaculture, transportation, manufacturing, pollution control, research, and education. No wonder Bob is interested in what's happening at the Circle C Oyster Ranch.

This is a partial list of some establishments that use Circle C oysters. Support those that support your investment!

Café de Artist, Shulas, Blue Point Grill, Angelo & Maxis, and Pesce

Visit OysterRanching.com for more fine restaurants and directions to each.