Subject: "Cost plus contract for Co Op City".

Body: As a follow up to my previous e-mail, here is the second request, which was in my opinion adequately addressed by John Schwartzenburg. I am frustrated with beginning the process over again. Kay

Subject: "CSA Amendments".

Body: Susan, Attached are redlined copies of the CSA Amendments. We made a change to the Monthly Contract Quantity to exclude Force Majeure events and Section 2.4 Shaft energy interruptions. Please review and call me with any questions. x-33512. Since we have circulated the prior amendment, I think it would avoid the most confusing by giving these amendments a new execution date. I also added a section which specifices that these versions replace the amendments dated June 18, 1999. The NBV letter values will also be redone. The numbers will have to be changed. The investors have asked that instead of a Contract Year Schedule, a quarterly schedule be included. I don't have the numbers from Mark yet, but will forward those changes as soons as I get them. Mark indicated that he had discussed these changes with both you and David.

Subject: "Additonal Information Concerning PG&E".

Body: On a related note, I spoke to Vector concerning the equipment which was suggested for cleaning on the PG&E system. It is as follows: 2 scrubbers, some underground C/S piping, filter separator, horizontal tank, 2-10.84 drip locations The Vector proposal for mobilization, demobilizataion and cleaning the above PG&E equipment will be approx. $ 75, 000. I approached Vector about the pipeline cleaning between our M/S and their C/S. They quoted a turn key price of $34,000. Because this piping belongs to Transwestern, we should contract this cleaning ourselves. If the decision is made to address this cleaning, I think we would want to have it done during the same time period as the PG&E cleaning activities. I will also need some lead time to notify Vector and determine an appropriate methodology to be used. Vector apparently has an approved methodology for cleaning pipes to 36". One additional note, apparently PG&E has discovered PCBs in their gas compressors. In wipe samples taken of the internal compressors PCBs were found at regulated levels.....

Subject: "EOL deals with Coral July-Oct 2000".

Body:
During June, Coral transacted on EOL. However, they selected a July thru October deal by mistake. The marketer immediately called the desk and we agreed to let them out of the deal, which resulted in the creation of a second deal in EOL. Coral is not reporting anything on the deal, since it was unwound. But, since EOL deals are automatically processed and are firm transactions, we cannot kill the deal on our side, even though they net to zero volume and price. Logistics will be brokering the transactions in MOPS. Please be sure that Coral is not invoiced or paid on these deals. Again, they will not have a record of the deals. The Sitara deals are: 287946 and 288653. Let me know if you have any questions. D