Subject: "Deer Lease Payment".

Body: Men: The dreaded time has come. Rent goes up and it is a month earlier. The initial $8,000 payment is due to Mertz on March 1, 2002. In addition, I paid Mertz $500 for the protien that he fed during the last hunting season. I need each of you to forward me a check for $1,071.42. Send to 815 walker, suite 1447, H/T 77002. Thank you. Erik.

Subject: "RFP Response".

Body: Donna, I am enclosing for your review our response to Southwestern Electric Cooperative, Inc.'s request for proposal dated October 5, 2001. We appreciate having the opportunity to respond and hope you will find the attached proposal of interest. We have submitted an offer for Energy with Imbalance Energy and an offer for Full Requirements Service for the June 1, 2004 to May 31, 2009 period. Additionally, we are prepared to discuss alternative structures with you if so desired. If you have any questions, please do not hesitate to contact me at (713) 853-7724. Sincerely,

Subject: "draft organization memo".

Body: All, Attached is the first draft of an EGM update and org memo. Please take a few minutes and review, add what is necessary for your section and return ASAP. Other comments are welcome as well. I would like to get this at on Friday evening or early next week. Please do so on a hard copy and have brought up. I will incorporate your changes. Some of the changes in the memo are still under consideration and need to be considered extremely confidential. This needs a lot of work and filler. Also add a one line update or positive statement about your business as an intro line of the section. Thanks,

Subject: "SDG&E OII".

Body:
On November 2, 2000, the California PUC issued an Order Instituting Investigation into the adequacy of Sempra's, SoCal's and SDG&E's planning of SoCal's and SDG&E's gas transmission system and what measures should be taken to correct any deficiencies. The parties have been ordered to appear and show cause at a hearing (to be scheduled by the assigned ALJ) demonstrating that: - SDG&E has adequate gas and transmission supply for the 2000/2001 winter heating season, as well as the longer term throughout the year. If such supply is not adequate, SDG&E shall submit plans for obtaining an adequate supply. - SDG&E's gas and transmission supply is adequate to meet anticipated need for gas-fired electric generation. If not, SDG&E shall submit plans for obtaining adequate supply. - SDG&E's gas transmission service is not being adversely affected by interests of its corporate affiliates. - Recently added demands on SDG&E's capacity are not negatively impacting supply for SDG&E's customers, and are otherwise consistent with representations to the Commission. - SDG&E's current gas curtailment rules are just and reasonable; if not, SDG&E shall propose changes. A written response from the three parties on these issues is due on November 22. Other parties may file comments on the response within 10 days after the response is filed. The Commission also ordered SDG&E to evaluate whether an interim, interruptible program, which will provide cost incentives to those customers voluntarily electing interruptible service, is needed this winter. If so, SDG&E must submit a proposal for expedited Commission consideration. The OII represents the Commission's response to an Advice Letter filed by SDG&E requesting emergency review and approval of its proposal to temporarily revise the gas transportation service level elections of its large electric generation customers. The Advice Letter was heavily protested and was withdrawn by SDG&E. In my conversation with Mark Baldwin regarding our pending consulting agreement for monitoring California regulatory matters for Transwestern, I asked him to watch for Sempra's Nov. 22 filing and to advise whether he believes Transwestern should file comments or appear at the hearing that is to be scheduled. I will follow up with Mark, and provide you with a copy of the filing.