QUESTION: Randy, this is a short summary of the environmental findings that were identified during the records review conducted at the Corpus Christi Koch facility offices on May 1st and 2nd of this year. All environmental records which were available in the file data room at the Koch office were reviewed. Assumptions were made that the environmental records were complete for all assets included in the sale. Primary emphasis was placed on those environmental issues which are normally associated with a sale or purchase of assets dealing with distribution and transmission of crude oil. In particular, pipeline and tank farms were the most critical assets which were reviewed. Based upon the data review, the Koch assets were in compliance with the following: Air permitting, permit by rule, standard expemtions, recordkeeping and fee payments were documented NSPS recordkeeping and inspections for VOC control on large crude oil tanks were documented Oil Pollution Act-OPA 90 plans had been prepared and were up to date SARA compliance and reporting had been completed SPCC plans had been prepared for each site which qualified under 40 CFR 112 Spill reporting history and notifications to the state agency were available for review There are ongoing groundwater and soil remediation activities at one site included in the asset for sale (permits for the remediation activity is in place) Hazardous waste notifications, annual reportings and fee payments were documented Based upon the above review, there were no issues which could be identified which would be condsidered a major environmental limitation or would be a considered a major environmental liability. This statement is again based upon the assumption that all environmental information was present in the data room for the assets in question. It should also be stated that this analysis of Koch's environmental compliance is based upon the fact that Koch has not held back or provided false or misleading information or knowledge during their presentation or informaiton contained in the facility files. Pending further development and interest of this potential purchase, a recommendation is made to conduct a phase I due diligence and site visit to each location to verify findings from the records review. Also, due to the past history of Koch's operating practices, it is recommended that contract conditions be implicitly stated that EOTT will not be held liable for discoveries of past deficiencies or releases of contamination which have occurred on any of the Koch assets purchased.
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ANS: Environmental findings, Koch South Texas Records Review

QUESTION: To our IBS Customers that are still hanging in there: We understand your continued frustration and express our sincerest apologies for our inability to give complete and accurate answers to your questions. The problems that we are seeing are one of three (3) possibilities: 1) You have entered your password incorrectly (or what you thought was the correct password) and been given the error message that you have exceeded your opportunities for today, and you receive the message "You have failed to correctly login three times today; please try again tomorrow, or contact the bank at 830-379-5236 to have your password reset." This is the easiest problem to correct and we can fix this one quickly with you online (on the phone). Should you receive this message, please call our Computer Department and ask for either myself (Howard Gordon) @ 830-401-1185, Christina Kirby @ 830-401-1189, or Lora Robles @ 830-401-1182. If you reach our voice mail (or another employee), please leave your Name, Account # and call back #. 2) You are not using the last six (6) digits of your ssn# (this is the ssn# or tin# of the primary account holder). Please try again using the last six (6) digits, or call us to determine who we have recorded as the primary account holder. 3) If you see this error message "Invalid login; please try again" (after three [3] or more tries), then you possibly fall into this last category. Your account is one of the few that did not convert correctly (we will not release any information about these accounts until we verify that all information is correct and accurate). We are finalizing these accounts today and should have them available for access this afternoon (late) or this evening. Once we release these accounts for IBS access, you will have to again use the last six (6) digits of your ssn# (this is the ssn# or tin# of the primary account holder), then you will be directed to a screen that asks for information such as: Name Address City, State Zip+4 Phone # E-Mail Address After entering this information and clicking submit, you will then be instructed to change your password to anything that you desire (you can at this point change your password back to what it was before). Always remember that your password is case sensitive. Should you get into IBS (before early evening [6:00pm]), the balance and transactional information displayed is as of 11/16/01 (Friday night). We will have this information updated by 6:00pm (hopefully), and then information will be as of Monday (11/19/01). Again we want to thank you for your patience through this (trying) ordeal, and we look forward to continuing to service your IBS needs in the future. Sincerely,
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ANS: Internet Banking

QUESTION: Patti, Attached for your review is a draft supplement to the Gas Price Letter which increases the gas that TW delivers to the LLC by 2585 mmbtu per month. We need to move forward and have TW execute ASAP to capture existing gas pricing, therefore I am only forwarding this document for your review at this time. There will be more to follow. Please contact myself at (713) 853-3512 or Mark Knippa at (713) 853-3463 with any questions. Thank You.
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ANS:
TW Gas Agreement