Informal Budget Dispute Resolution Process
Effective June 1, 1998

  1. The Informal Budget Dispute Resolution Process ("Process")
    is intended as the preferred, first, quick, and low cost
    method to resolve informally individual budget issues and
    disputes prior to commencement of any legal or formal
    administrative proceeding.

  2. The Process will be optional and non-binding for both the
    United States Trustee and the Standing Trustee (the
    "Parties").

  3. Upon the request of either Party, initiated as hereinafter
    provided, a two-member Panel will be named, consisting of
    one United States Trustee and one Standing Trustee from
    outside the region (the "Panel"). At their option, the
    Parties may have a one-member Panel.

  4. The Standing Trustee Panel member will be selected by
    the Assistant Director of the Office for Review and Oversight
    ("Assistant Director of ORO") from a list of three (3)
    Standing Trustees named by the disputing Standing Trustee
    from the roster of qualified Standing Trustees, each of whom
    has had formal mediation training and agreed to serve.

  5. The United States Trustee Panel member will be selected by
    the NACTT Chair of the Informal Budget Dispute Resolution
    Process Committee ("NACTT Chair") from a list of three (3)
    United States Trustees named by the disputing United States
    Trustee from the roster of qualified United States Trustees,
    each of whom has had formal mediation training and agreed to
    serve.

  6. The Process will be initiated by either Party completing and
    serving a "REQUEST FOR INFORMAL BUDGET DISPUTE RESOLUTION"
    in the form of Exhibit "A" hereto. Service shall be by FAX
    on each of the following:

    1. The other disputing Party;
    2. Assistant Director of ORO (EOUST at (202) 307-2185);
      and
    3. The NACTT Chair (call the Administrative Assistant to
      the Board of NACTT at (501) 753-6135 for name, fax
      number, etc.).

  7. Within five (5) working days after receipt of such notice,
    the other Party will complete and similarly serve a "REQUEST
    FOR INFORMAL BUDGET DISPUTE RESOLUTION" in the form of
    Exhibit "A" hereto.

  8. Within five (5) working days after receipt of notice of
    their selection, the Standing Trustee Panel member will call
    the United States Trustee Panel member and the Parties to
    schedule a Dispute Resolution Conference (DRC) at the
    earliest practical mutually convenient time and date, to
    discuss: (a) How, when and what documents or information
    are to be exchanged prior to the DRC; (b) the estimated time
    needed for the DRC; (c) whether the DRC will be telephonic
    or in person; and (d) any other procedural matter related to
    the DRC. The Panel shall have thirty (30) days from the
    date of its appointment to attempt to mediate the dispute.
    This thirty-day period may be extended only upon the
    agreement, in writing, of both Parties, prior to the
    expiration of the thirty (30) day period.

  9. The Process shall be conducted in accordance with the
    decisions and procedures established by the Panel pursuant
    to paragraph 8, and the "Suggested Procedure For Conducting
    Informal Budget Dispute Resolution," Exhibit "B" hereto.

  10. If the Parties resolve their dispute, the Panel will assist
    the Parties in reducing to writing a description of that
    resolution for signatures. That document will become part
    of the United States Trustee's proposed budget submission to
    the Director. The submission will conclude the Process. In
    the event the Parties are unable to arrive at an agreement
    to resolve the dispute, the Panel may, on unanimous
    agreement of the Panel, within five (5) working days of
    conclusion of the attempted mediation, issue a non-binding
    joint written recommendation to the Parties. The Parties
    may either accept or reject the recommendation or use it as
    the basis for further negotiation between themselves. The
    issuance of the recommendation by the Panel will conclude
    the Process. At the conclusion of the Process, the Panel
    will complete and serve on the Assistant Director of ORO and
    the NACTT Chair a "Report on Result of Informal Budget
    Dispute Resolution Process," Exhibit "C" hereto.

  11. The expenses of the Process approved by the Panel, including
    telephone, travel, etc., will generally be paid by the
    Standing Trustee out of his/her expense funds subject to
    approval of his or her United States Trustee as reasonable
    and necessary.

  12. Pending final resolution of the dispute, the United States
    Trustee shall submit to the Director, or the Director's
    designee, for approval the Standing Trustee's budget,
    excluding any disputed amount(s). The Standing Trustee
    shall not expend trust funds for any disputed portion of a
    budget line item. In the event the Parties reach an
    agreement in the budget dispute, and that agreement is
    approved by the Director or the Director's designee, the
    budget will be deemed amended to reflect the agreement.

  13. The Parties and the Panel shall sign an agreement that
    evidence of (1) furnishing or offering or promising to
    furnish, (2) accepting or offering or promising to accept a
    valuable consideration in compromising or attempting to
    compromise a claim which was disputed as to either validity
    or amount, or (3) any recommendation that may be made to the
    Parties by the Panel is not admissible in any subsequent
    administrative or legal proceeding in which the issue is the
    budget dispute being mediated. Evidence of conduct or
    statements made in compromise negotiations are likewise not
    admissible. This provision does not require the exclusion
    of any evidence otherwise discoverable merely because it is
    presented in the course of compromise negotiations. This
    provision also does not require exclusion when the evidence
    is offered for another purpose, such as proving bias or
    prejudice of a witness, negating a contention of undue
    delay, or proving an effort to obstruct a criminal
    investigation or prosecution. The agreement will not apply
    to documents, work papers and other evidentiary materials
    related to the underlying dispute and prepared by the
    Parties in the ordinary course of business and not generated
    in connection with or in anticipation of the Process.