QUESTION: Kim & Frank, I received a call last week from a Brian Laurie with PG&E. Brian indicated that PG&E was splitting their Pipeline and LDC businesses into two separate units/companies. Brian was asking about what kind of agreements that NNG has in place dealing with our LDC business. I'm not sure how much or what kind of information that we feel comfortable in sharing with PG&E on this issue. Can you give me some insight into what information we may want to share or who may need to discuss this with PG&E.
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ANS: PG&E

QUESTION: Deer All: I have a person that might fit what we are looking for in the 8th spot or to fill a gap left by Joe (who is currently unable to provide a firm response). B.J. Johnson. Played football with Chad and I at Jesuit. Was a year a head of us. Met Zander at UH in College and hung with he and Brian while they were rooming together. Went to lawschool a few years after me. Is out and doing well with at a well known plaintiff's lawfirm. Nice guy. He mentioned a year or so ago to call him if we ever had a spot. His dad used to take him hunting and BJ wants to return the favor. Looking for a place he could take his dad once or twice a year, just to get out there not to shoot deer. He has two small girls, is busier than I am and would go no more than the rest of the Houston boys. He is a good guy. Don't know much about his deer hunting experience, but I don't care about that. Chad and Brian give him the stamp of approval. My thought is we could proceed as set with Chris and I splitting the 8th spot, but if Joe winds up taking a job out of state (which is a possibility) we would be left with two spots to fill and less time to do it. I think it might be best to offer this spot to BJ and fill up all 8 spots, then if we lose Joe, Chris and I can be the fall back plan. Thoughts and comments from the McComb guys please. Erik.
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ANS: Possible new lease member

QUESTION: Allyson, As you know, we have had discussions with the City of Rocky Mount regarding possibly buying gas from them for the new power plant in Edgecombe County. Evidently, the gas company has figured this out, and is not happy with this prospect. We would like your opinion concerning the City's ability to (a) require that a tap be made so that the power plant be served and (b) sell gas to Enron for this purpose. When considering these issues, please assume that the City would own and annex the land, and lease it to an Enron entity. We will need the gas by next March or April, so time is critical. Should the gas company decline, what is the appeal process and how long can it be expected to take? Do you have any suggestions for expediting the process? I am having the contracts between the gas company and the City sent to you, and you should have them by Monday. Thank you for your assistance,
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ANS:
VEPCO/City of Rocky Mount