Subject: "PB-KBB - Construction of Cavern #1 (Napoleonville)".

Body: Eric, As we discussed, we need to take the most recent invoice from PB-KBB (the contractor that is responsible for injection of gas into Napoleonville) and have them bifurcate the bill into pre-bankruptcy and post-bankruptcy amounts (using 12/2 as the date of bankruptcy). In the meantime, please prepare a Cash Use Request Form for the post-bankruptcy amount (Doug Sewell can assist you on this) for consideration by the Cash Committee. [CHIP PLEASE CONFIRM THAT THIS IS THE APPROPRIATE COURSE OF ACTION] Also, please forward Gerald's draft of new agreement to PB-KBB for their consideration along with any proposed changes to the scope of work description.

Subject: "Midway".

Body: Mark Haedicke approved the hiring of King & Spalding for this matter. I will drop Mr. Derrick a voice mail, but I would faint if he objected. John, we need to talk about the sale of the LLC, and the generation of a draft doc re same. Please let me know if you are available today to discuss this transaction with Sr. Jacoby and me. Additionally, it would be helpful to discuss the tolling arrangement with Ken. Thanks,

Subject: "Vacation day".

Body: I need to take a day off if you do not mind Tomorrow, Friday Feb 9 to look after my son who will be out of school. Dee will be traveling with Chelsea to a dance competition. Call me on my cell if you need me.

Subject: "More base gas questions".

Body:
Tracy: Sorry to bother you with this one again - in 1999 and 2000, what were the revenues and costs associated with the base gas sales - the footnote disclosure indicates $53 million and $34 million in sales but not the cost. In addition, going forward, how much of the 2001 and 2002 TG&S expense is solely related to this transaction (i.e. expenses that would not be incurred but for this transaction)? My question may be a bit confusing - call me if I am totally off base!