Subject: "Merger Letter".

Body: Sara, Further to my voicemail message of this afternoon, attached is the "merger letter". As it happens, both Chase and Morgan had ISDA agreements in place. The letter selects the Chase agreement (which, as you know, we amended earlier this week), as the preferred agreement, and terminates the Morgan agreement. Please review and call me (212-270-2673) if you have any questions. If the letter is acceptable, please call me and I'll arrange for execution copies to be sent to your attention. Thankyou again for you help.

Subject: "Kinder Morgan Makes Some Expansion Announcements for Rockies".

Body: Pipe Expansions Planned for Rockies Region With several pipeline companies well into addressing the pipeline capacity shortages that persist as natural gas production grows throughout the Rocky Mountain region, Kinder Morgan Interstate Gas Transmission LLC (KMIGT) announced two major projects Wednesday, and several other companies detailed expansions planned or in the works during the closing session at the 13th Annual Rocky Mountain Natural Gas Strategy Conference. Headlining the news was KMIGT's plans to use existing rights-of-way to build the Advantage Pipeline, which would fill the same needs as the Colorado Interstate Gas pipe, moving from the Cheyenne Hub to the Mid-Continent. An open season is scheduled on the proposed pipe this fall. Dave Scharf, business development director for KMIGT, said the 24-inch pipe, which would move gas primarily from the Powder River Basin, would have a capacity of 330 MMcf/d, delivering to interconnects on its way to the Kansas City markets. "It would have a smaller size, with about 40% less content," Scharf said, but it would be expandable to 450 MMcf/d, with access to liquid Mid-Continent pipes, local distribution centers and end-use markets. A smaller pipeline, NECO -- a 12-inch pipe, about 95 miles long -- would serve the northeastern Colorado market. Although small, Scharf emphasized that it would reduce some of the bottlenecks now evident in moving gas in that part of the state, and would also allow backhauls to Cheyenne. An open season on this line is also scheduled this fall, Scharf said.

Subject: "FERC Meeting on November 7".

Body: FERC's meeting scheduled for Wednesday, November 7, does not have any RTO dockets on the agenda. The generic docket "Electricity Market Design and Structure," which is the docket FERC is using for its "RTO Week" proceeding, is included on the agenda, but we do not expect any significant actions in this docket because FERC is still taking comments from the industry on the outcome of RTO Week. However, this new Commission has surprised us before, so if anything of import happens at next week's meeting, we'll notify you immediately. Please let us know if you have any questions. Sarah

Subject: "Blakes".

Body:
Jim: Here is the background of the "dispute" with Blakes. There is a lot of emotion on both sides. I believe we need Blakes on a going forward basis in Canada. Mark Haedicke