Subject: "Credit Watch List--Week of 5/21/01".

Body: Attached is a revised Credit Watch listing for the week of 5/21/01. Please note that The Paralan Company and SGL Carbon, LLC were added to the Credit Watch List. Also, Southstar Energy Services, LLC had been moved to "NO TRADES". If there are any personnel in your group that were not included in this distribution, please insure that they receive a copy of this report. To add additional people to this distribution, or if this report has been sent to you in error, please contact Veronica Espinoza at x6-6002. For other questions, please contact Jason R. Williams at x5-3923, Russell Diamond at x5-7095, or Veronica Espinoza at x6-6002.

Subject: "Carthage GAS DAILY MONTHLY INDEX".

Body: Dale/Melba, I need a gas daily monthly index to be set up for both Carthage Hub and Agua Dulce Hub. We will be trading basis swaps off of this differential. Call with questions. Thanks,

Subject: "Property tax - Caledonia".

Body: Hey Warren: Here are a couple of questions we are working on for Duke on the 99's. If you could take a look at these that would be great. Thanks! Ben 3-7998

Subject: "Gas Sale Docs. and Revised Agency Agreement".

Body:
We have accepted your suggested revision to Article 13 of the Agency and Management Agreement. Attached is a new executable with the language revised. Also attached for execution are the gas purchase confirm and associated GTC for the gas purchase through Monday June 4. The GTC was revised to remove the $0.15 per MMBtu liquidated damages. Thanks.