Subject: "Status of Online Amendments".

Body: Tana: As we discussed, here is my list of amendments that are according to my records in various stages of negotiation: 1. Allegheny energy - Patricia Clark sent to Frank Davis her comments on June 15th by e-mail. I responded on June 19th and have never heard back from her. Most of her comments we could not accept. None of her comments have been run by Dave. 2. Imperial Oil - Grant Oh was handling this. They had 3 comments. most of which we could not accept. I spoke with Grant about this around June 6th and have never heard back from him. None of their proposed changes have been run by Dave. 3. Kennecott Coal Sales Company - A draft amendment letter which Dave F. has approved was sent to them on May 15th. My contact there is Jim Sobule Wayne Gresham is alos involved in this. I have never heard back from Jim. 4. Arco - We received by e-mail comments from David Dyck at Arco in March. Tori Kuykendall and Grant Oh are involved from the Enron side. I responded to David Dyck by e-mail on March 10th and have never heard anything further on this. None of their comments or my response has been reviewed by Dave. 5. Chevron - Canada - I received a letter from Bruce Borwick on January 31st which I responded to and have never heard anything further from them. Dave has not reviewed their comments or my response. 6. Cargill - I sent to Mike Pederson a form of amendment letter which I don't think has been signed. They wanted a minor change to the confidentiality language. Dave has not seen this but in the event that Cargill comes back to life, i doubt that he will have a problem with it. 7. Cinergy - I sent a draft amendment letter which dave approved to John Dirheimer on May 15th. To my knowledge it has not been signed. 8. Duke Energy - I sent a draft amendment letter to John Puett on May 15th which Dave approved. To my knowledge, it has not been signed. 9. Talisman - we have been exchanging drafts of a revised ETA for months. My contact there is Ann Love. We are close to reaching agreement with them and mark has been involved in some of the early discussions. I am sending to Dave a mark-up of the revised agreement for his approval. All of the ETA amendment letters and the Talisman revised ETA are in my directory under specproj/online. Carol

Subject: "Nat Fuel".

Body: I just received a call from Damon Sykes at National Fuel. He said we have positive balance of 797,464 on our FSS contract, and we have a balance of (797,163) on our ISS. It looks like we paid back 301 dth too much. Damon said we need to do a nomination to reverse the storage balances and we need to take out the 301 dt. Would you guys speak to Nat Fuel about handling this please? Don't worry about doing it this weekend, take care of it early next week. Thanks

Subject: "update on Avistar".

Body: Sally, Thank you for your continued support of Avistar. As you probably know Brent Price has approved additional Avistar equipment for his direct reports in Houston, London and Singapore. We will begin to install these additional desktop conferencing units within the next couple weeks. I know we had also discussed a possible deployment to Stace and Jeff's groups. I am in Houston this week if you would like to discuss their possible project and get a sense of the budget requirements. Please feel free to reach me on my cell phone if you have any additional questions, 650.281.3860. Thanks

Subject: "Administration Wants to Talk to Me About CA's Gas Problems".

Body:
FYI. Just got a call from someone inside McKenzie & Co.. Seems the good Governor has figured out that the gas industry is a problem and want to talk to me about it. I'm scheduled to talk to them by phone Friday at 1:30. I called Kari Dohn to try to find out more. She told me that they've figured out that the gas industry is a mess, that "McKenzie gets it," and she asked to tell it like it is. Seems useful to get our view across to them. The name of the person from McKenzie that will be on the call with the Davis folks on Friday is Daniel Poller. Thoughts? Best,