For the purpose of preventing and rectifying illegal or inappropriate specific administrative acts and regulating the administrative reconsideration and litigation of the environmental protection administrative agencies, on December 19, 2006, the State Environmental Protection Administration of China (SEPA) passed the Measures on Environmental Administrative Reconsideration and Responding to Environment Administrative Cases (the “Measures”), which took effect on February 1, 2007.

The Measures provide that the administrative reconsideration organ shall be the competent environmental protection administrative agency (the “Reconsideration Organ”). According to the Measures, individuals, legal entities, or other organizations may apply to the Reconsideration Organ for the administrative reconsideration where the specific administrative action or omission by the environmental protection administrative agency infringes their legitimate right. The Reconsideration Organ may dismiss the application where the time limitation prescribed has run and the applicant does not showed any reasonable cause; or the application is made in respect of the mediation decision to the monetary liabilities or disputes made by the environmental protection administrative agency; or the applicant has submitted the application to other Reconsideration

Organs or has instituted the administrative litigation before a court. According to the Measures, the administrative reconsideration shall be a documentary review and be completed within 60 days upon admission. Such 60-day period may be extended, but in any event, cannot exceed 90 days.