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BACKGROUND ON CRUDE OIT ONTACTS WITH CHARTER of crude oil..Such contacts are often accompanied by a reference to a.specific. type of crude oil fron a variety of different oil production locations. Generally speaking, individuals bringing such propositions have as part of their proposal a commission fee'ranging from Sc a barrel to occasionally as high as 5% of the total cost per barrel. The proeedure of Charter Oil Coap-ary is to acknowledge such contacts within the framework of day-to-day business, and to evaluate each such proposal for its viability. In the oil industry it is coumon practice to handle such proposityns in this regard. Individuals brokering crude oil. are especially prevalent during periods of extreme sbort supply of crude oil worldwide. It is common practice in most oil-producing countries to distribute their crude oil production in three ways:. Through private oil coupanies that have production in that particular coumtry. 2. Through nationally owned oil companies within that country. 3. Through allocations of oil to various individuals.. It is this last distribution network that accounts for the vast majority of individual oil broker transactions. :SEQUENCE OF EVENTS: CONTACT FROM BILLY CARTER Billy Carter and Mr. Jack MacGregor, a former executive vice president of Carey Energy Company and currently a consultant to Charter, at some point Mr. Carter. Hr. MacGregor contacted The Charter Company anu sti up a meeting betwecn the president of Charter Crude oil Company, Mr. Lewis Nasife, and