Subject: "Nipsco".

Body: You may already know this, but I heard from guys at Nipsco that they did their first nom on Vector yesterday. Also, Border interconnect expected Dec. 15th. The heater hit a bridge so they are trying to do some field repairs. Not much else to report.

Subject: "June EPE Buy-Resales".

Body: Holden & Lisa - Per Holden, I've changed deal 630176 from a price of $170 to $197. Terms and reasons are as follows: 6/4/01 STSW buys EPE 49 mw/HLH The other side of this deal is a sale to El Paso for $204. Kathy questioned the invoice she received from Houston this month, because the breakdown of transmission costs and fees we had given her (regarding buy-resales done by your desk on 6/1, 6/2, and 6/4) amounted to a spread of $14.06. The deals we entered into our system, and subsequently billed El Paso for, amounted to spreads of $14.06 for 6/1, $11.06 for 6/2, and $34 for 6/4. To remedy this, and extend a gesture of apology for the mistake, we've changed our buy from El Paso on the 4th to a price of $197, leaving a spread of $7 to cover our transmission costs. I've explained this to Kathy at El Paso and Amy in Settlements, and wanted to give both of you a record of the change as well. Please let me know if you have any questions. Thanks,

Subject: ""Postponement" language to add to confirmations".

Body: Please take a look at the proposed language. You will need to consider the time period before which a Market Disruption Event will kick in. : Postponement: For the purposes of the definition of "Price Source Disruption," as set forth in Section 7.4(c)(i) of the Commodity Definitions, the Maximum Days of Disruption shall be [thirty-two/sixty-four] days after the last date of publication of World Pulp Monthly, or any successor publication, published by Resource Information Systems, Inc. or its successor for the applicable Calculation Period.

Subject: "Results of Meeting on Storage Allocation Changes".

Body:
The following summarizes the results of our meeting......If you want to discuss further, please call me. Break Field Area in 3 Regions / Allocate by point The decision was made to sub-divide the Field Area storage group into two regions; South of Plainview and North of Plainview, rather than 3 regions or allocating by point. If it is determined that additional divisions are necessary in the future, such changes can be made at that time. Changes to CAS are required. I have discussed the changes with Bob Johnson and Doug Aschwege and have learned that the changes are not difficult to make and could be made in a couple days. Gary Spraggins and I will determine which deferred delivery points are in these new field regions and then provide the information to Bob and Doug. Question: Should this change be implemented immediately or should it wait until the beginning of the withdrawal season? Change from 'net zero' approach / Provide minimum level of activity The decision was made to table this concern for now. The scheduled activity that drives the allocation process does not guarantee physical pipeline operations. In most cases, the flexibility provided by the Cunningham Field allows Gas Control to adjust operations to maintain the required minimum level of injections/withdrawals into Redfield and Lyons. Further analysis is required. Steve Thomas, Larry Swett and I will continue to monitor the system conditions/operations that effect physical storage to determine if and what additional changes maybe warranted. Send "Notice" when final scheduled number exceeds operational capacity The IT group will modify the scheduling cycle to add a procedure where the final net scheduled storage quantity is compared to the operational capacity set for storage. If the final scheduled quantity exceeds operational capacity, I will receive a notification via e-mail. The purpose here is to monitor occurrences to determine the magnitude of the problem. I will get with Gerry Medeles to finalize the matter.