I guess two things and the first is on the J. Ray side. Your backlog roll-off in the third quarter is kind of lower than it was three months ago and I am just...can you help us in more detail kind of understand what went on exactly? I mean, the first quarter you had a lot of weather disruptions. In this quarter, it seemed like there were some other issues. I mean, did you just book too much work? Is there...just trying to get a grasp on kind of how to think about it in more detail and how to think about the margins going forward at J. Ray?

Bruce W. Wilkinson

Well, I think and weakly, I touched some of this with Andy''s question. I think it''s a...it looks like it happens all at once, but in fact, in reality, it sort of...it happens sequentially kind of step at a time and, in fact, some slippages on the contractor too, going all the way back to ''07 really what it...when it puts you from an expected good weather window into an anticipated bad weather window, then you''re suddenly confronted with the reality that''s in the twelve-month cycle, some of the months are better than other months. So, it really is...again, if you think about every time when we bid the work, we look at the projects and we have a...just whether it''s a fab work or marine work, we don''t...we certainly don''t bid work where we have no capacity to deliver it. We bid it based upon existing known-schedule, other bids outstanding and win those where various work barges are open, and then the competitive marketplace when we price that. So, in a steady state, it''s a perfect world on an ask-bid basis, but what we really describe to you is in a full construction market like this, it is not a steady state, it is very, very dynamic, and there are constant shifts and changes. So, it''s not a case of...I mean, the great irony is right now we...if you take our fab business, we have...I can count 12 to...11 to 13 million man hours of under-utilized capacity as we sit here today in a very busy marketplace, as well as there are even some places where we have a few days here or there, where the marine barges are not fully utilized.

So, it is just in the various areas of world where we work, it''s a constantly changing marketplace and we are trying to change with it. So, I think it just a...it''s compounded, as I said, right in the Mid-East right now, and I think we working through it and it will improve.

Stephen Gengaro - Jefferies & Company

So, is it a contracting issue, is it an execution issue, is it both?

Bruce W. Wilkinson

I don''t think it''s a...again, I don''t think it''s a...I would consider it a contracting issue. If you price something too low, not enough margin, not enough contingency or when you are fully booked, that is clearly a contracting issue. None of that is happening or has happened. What it really is it''s…the construction industry is a challenge on any day and in the water it''s more challenging than it is onshore. I think what we''ve had here is a case where certain slippages of projects actually where you then are ahead of the game in your onshore activities and you have a full fab yard overcrowded with product ready to go and a need for all the barge activity to happen at once, which is sometimes fortuitously at the request of the customer to move the schedule and in some cases it has been execution as well. I mean there is no question, you have to execute perfectly to not have some of these issues today and being perfect is difficult in the offshore business as it is in golf. In my opinion it is not...it''s not a very forgiving world when you, the difference between six-foot sea state and four-foot sea state makes a huge difference in the way you do your welding for instance.

So, the fact is it''s not a perfect static state out there and we have had challenges with it. We have mentioned that it is true, I am the last guy around it, I want to put blame on events like weather because I am always first to take blame where I feel like we have had blame to reassess, but it is true that we''ve had extraordinary unusual weather conditions all at once, like kind of the opposite of year or so ago where everything worked perfectly. And it is also true that it may not sound much to you but when we were beating the margin expectations that all of you had, our downtime...downtime in a project can be due to our own equipment or due to sub-contractors. And so when you...so again it all has to be perfect but going back a year or two years ago, we have reduced that downtime by investing in our own barges by having more spare equipment, updating everything we could before we went out on a marine campaign. We have reduced the downtime to call it 2%, 2.5%, that number is closer to 4% these days, which is partially what we can control but it''s partially when you bring in once again in a full construction business environment, you bring in sometimes sub-contractors whose equipment itself is on the ragged edge and then you suffer that. So, this is a long way of telling you. It is a full market out there and everybody is working stressed to the help and it''s not a game of perfect right now.

Stephen Gengaro - Jefferies & Company

This is the final follow-up. When you look at the work you are bidding on right now, are you asking for demand in getting better terms, better contingencies, and how are you going about bidding work in this kind of an environment, or you obviously have good visibility, you are pretty busy already obviously? I mean are you--?

Bruce W. Wilkinson

Yeah, we are taking into account knowledge that''s gained daily, for instance, we, everybody thinks that the $140 barrel of oil only affected the airlines and the travel industry. Well, the fact is it''s...our barges fill up the DB50, used to be maybe three quarters a million, it''s probably a million quarter now just for fill-ups. So the fact is that even some of the big numbers that we…most of these projects were bid in...those are in the marine phase were bid most likely in ''06 and went through the fab phase in ''07, and are now in the marine phase, and so we put big numbers...we thought they were pretty bullish numbers and yet we miss some of those, and we are...so we are taking that into account. We also are taking into account the reality of this downtime phenomenon I mentioned and we are trying to anticipate all that. So, but the fact is, we are sitting there still projecting that our fuel cost will be on the rise that it''s been on in the last three weeks and certainly permitting the other way so we might pick some of that up. So, yeah, we, every day''s experience gets reflected in our bids for the further going forward.

What I would always hope of course is all the competition figures that are out like we do because what you always worry about is the other clearly, it doesn''t and it continues to be at something low when in fact the reality in the marketplace suggests it to be the other way. So we are certainly trying to compensate forward in our thinking.

Stephen Gengaro - Jefferies & Company

Okay.

Bruce W. Wilkinson

And I would say to that I think...the way to look at this is that the ask-bid, ask- margins, the ask-bid, the backlog, the way if you have looked at it a year or two ago and look at it now, there is really not any sea change at all in that. What is going on is the phenomenon that all of us have really grown below is when we don''t need the...when we estimate all the cost correctly and we don''t need the contingency and the contingency becomes profit. And today we and everybody in this industry are finding that some of that contingency actually goes to cost, which is not uncommon and is more typical on a long...long look back at the industry.

Stephen Gengaro - Jefferies & Company

Okay. Thank you.