TD RECCOMENDATIONS

1. The TD recommends that the Commission approve Pacific's proposed replacement of thirteen NRF monitoring reports with the USOA summary report with the condition that it provide reconciliation reports for August 2000 through December 2000 as they become available.

2. TD recommends eliminating as a monitoring report the Pacific 10 Q annotated report.

3. The TD recommends granting Pacific's proposal to replace the two Pacific SEC reports (10K, and 10Q) with the SBC 10 K and 10 Q reports, subject to the following conditions.

a. Pacific should be ordered to follow the requirements of Asset Transfer Notification report.

b. Add to the Results of Operations Report (RO) a summary of asset and property right transfers.

c. The RO report should include a statement of cash flows in the same format and with the same content as the Statement of Cash Flows that has been provided in the past to the SEC by Pacific in its 10K and 10Q report.

d. The RO reports should be modified, to the extent necessary, to include a Management Discussion and Analysis of Results of Operations that is based on the form and contain the same content as that included in Pacific's 10K SEC report.

e. Pacific identify by year all asset and property rights transfers that have been made subsequent to 1996 and file this information as monitoring reports.

The above identified changes to the RO report should be reflected in the report for the calendar year 2000.

4. The TD recommends that Pacific's request to replace two MRs with two proposed FR's with the same information be approved.