U.S. SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 48572 / September 30, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11287

Commission Initiates Administrative Proceeding Against Larry R. Crowder and
John R. Powell

   On September 30, 2003, the Securities and Exchange Commission
   instituted administrative proceedings against Larry Crowder and John
   R. Powell based on the entry of a judgment of permanent injunctions
   against them. The Division of Enforcement ("Division") in its
   Complaint in the injunctive action alleged that from 1993 to the
   present, Crowder and Powell raised $15.7 million from more than 600
   investors nationwide through their companies, Environmental Energy,
   Inc. ("EEI"), EEI's affiliates, and Irvine Securities, Inc. That
   Complaint further alleged that the respondents failed to disclose
   adequately the extent of the "profits" that EEI made selling oil and
   gas rights to the partnerships, and that the vast majority of the
   funds were diverted to the personal benefit of Crowder, Powell and
   others.

   A hearing will be held before an Administrative Law Judge to determine
   whether the Division's allegations are true, to provide respondents an
   opportunity to dispute the allegations, and to determine what
   sanctions, if any, are appropriate and in the public interest. The
   Commission directed that an administrative law judge issue an initial
   decision in this matter within 210 days from the date of service of
   the Order Instituting Proceedings.

   On October 10, 2002, in an action brought by the Commission, the
   United States District Court for the Central District of California
   entered an injunction prohibiting Powell and Crowder from violating
   the securities registration and antifraud provisions of the federal
   securities laws, Sections 5(a), 5(c), and 17(a) of the Securities Act
   of 1933, Section 10(b) of the Securities Exchange Act of 1934, and
   Rule 10b-5. On August 5, 2003, a federal grand jury indicted Powell
   for making false statements to the Commission, and the indictment was
   subsequently amended to add wire fraud charges. For more information,
   see Litigation Release Nos. (August 8, 2003), (June 9, 2003), and
   (July 29, 1998).

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Modified 10/01/2003