Subject: "Results of 11/14/01 Duke Meeting".

Body: The following Items resulted from our meeting with Duke on November 14, 2001. 1. Resolve issue concerning January 2001 Reservation Charges by end of 2001 (Shawn Davis, Robert, & Penny) 2. Duke to return signed Confirmation Letter for K# 21047 and remit amount due NNG ($283,109.51) by November 19, 2001. 3. Duke and NNG will schedule a monthly meeting (after NNG Accounting Close) to allow the identification of any issues in a timely manner. 4. A meeting to be scheduled in December 2001 to discuss the Bushton Audit Process between Northern Natural Gas, Mobil, and Duke. If you have any questions, please contact Harry Woodson, Joe Linhart, or myself. Robert

Subject: "California update".

Body: Jennifer --are you able to put together a one page update on where things are in California? I need to give Ken Lay a brief update his packet of information for a meeting on Thrusday. Jeff Dasovich is terribly busy, but said he would review and edit an overview if you put something together for him. Let me know if you cannot. Thanks

Subject: "2001 Group Expenses".

Body: Guys, attached you will find a final cut on the ENA 2001 expense budget. Please review and make any adjustments to your existing plan that are appropriate to hit the net ENA target. In order to stay flat year on year, I split the remaining positive variance equally across the groups. As we had discussed earlier, these costs will not be allocated to the business units and will be tracked on the ENA income statement below the line and the accountability managed by each of you. All outside variable costs, specifically related to specific deals, will be charged to the business units eg) outside legal and tax, outside technical expertise, facility costs, outside research support, incremental back and mid office support for specific asset management deals, specific entertainment, etc. I look at this cost structure as the minimum capacity charge we need to operate our business and evaluate/manage our risks. Wes, can you please finalize the one page plan (expenses and headcount) for each group with these changes. Regards

Subject: "Employee Memo re: Corporate Secretary".

Body:
Attached is a draft employee memo, which has been reviewed by both Rebecca and Paula. Please review, and let me know if you have any comments or changes. Thank you.