Subject: "Calif Lodi Storage Project Won't Start Up Now Until December 1".

Body: Second CA Merchant Storage Field Pushes Back Opening California's second merchant underground natural gas storage project near Sacramento began injecting supplies this month, but its commercial start-up date has been pushed back to Dec. 1, according to the California operations manager for Houston-based Western Hub Properties LLC, the developer. Although it is not fully subscribed more than half the capacity is under contract, according to Jim Fossum, the in-state manager for Western Hub, which was purchased last summer by a partnership of Aquila Inc and ArcLight Energy Partners Fund in a $220 million deal that is still several months away from approval from the California Public Utilities Commission. The Lodi Storage Project near the town of Lodi, CA, about 35 miles south of the state capital, will have "high-performance, quick-cycle-capabilities" in a project that stores 12 Bcf of natural gas with a 500 MMcf/d withdrawal rate and 400 MMcf/d injection rate. Fossum said Western Hub also is pursuing a second merchant storage project in the southern half of the state around Bakersfield in the Wheeler Ridge area close to the nexus of all the major interstate natural gas pipeline coming into California. That project, he said, is not included in the Aquila partnership purchase at this time, and will be developed initial by a still-to-be-named company using some of the same personnel that developed Lodi. The same group also has a potential storage site identified in Texas, near San Antonio.

Subject: "World Hunger- Section 9.6 Additional tests - text of attachment".

Body: 9.6 Additional Factory Testing . In the event that Purchaser reasonably determines that a factory test=20 conducted by Seller or its Subcontractors was not conducted properly or the= =20 results of the test were inconclusive Purchaser may required Seller to repe= at=20 such test in a fashion as to obtain conclusive results. =20 Purchaser may request Seller or its Subcontractors to perform one or more = of=20 its factory tests using more precise instrumentation than planned, or=20 conduct a test not in Seller=01,s or its Subcontractor=01,s standard factor= y test=20 program. In the case of a Purchaser request for an additional non standard= =20 factory test the conduct of such test shall be subject to mutual agreement = by=20 the parties. =20 In the event as a result of such Purchaser requested repeat test, ormore=20 precise instrumentation or non standard test the Equipment is found to not= =20 be compliant with the requirements of this Agreement, Seller shall correct= =20 such noncompliance and the cost and time associated with such testing shall= =20 be to Seller=01,s account. If the Equipment is found to be compliant with = this=20 Agreement, Seller shall be eligible for a Change Orderfor the cost and time= =20 associated with such testing.

Subject: "SoCal RLS/Peaking Tariff".

Body: In the CPUC's meeting today, the Commission approved the proposed RLS/Peaking tariff which provides for a bypass peaking rate when customers bypass their system except for peaking service. It appears they approved the June 19th Proposed Decision which establishes a cost based rate made up of four components--Customer Charge, Public Purpose Program charge, Reservation Charge and a volumetric Interstate Transition Cost Surcharge. As soon as the Order is published I'll review the final Order and advise if this is still true or if any changes were made. SoCal will have 10 days from the Order to file an Advice Letter with conforming tariff sheets.

Subject: "In Calgary Office - February 7 and 8".

Body:
I will be in the Calgary office with Peggy Hedstrom and her team next week on Wednesday and Thursday, February 7 and 8. Do either one of you have a specific issue that needs to be addressed that I could handle while I am in Calgary? My agenda with Peggy and her team is pretty full, but I can add to that anything that you know of that we need to address. Just let me know. That puts me in Calgary for the staff meeting on Wednesday. I will sit in with Rob Milnthorp on the video conference for the first hour of the meeting. I already had a meeting scheduled with all of Peggy's team during the second hour of your staff meeting. Due to location constraints, we will have to keep that meeting as scheduled. So I will have to step out of the staff meeting for the second hour.