Julie,

The numbers for January are below:

Actual flows X gas daily spreads $ 463,000
Actual flow X Index spreads $ 543,000
Jan. value from original bid $1,750,000
Estimated cost to unwind hedges ($1,000,000)

Based on these numbers, I suggest we offer to pay at least $500,000 but no
more than $1,500,000. I want your input on
how to negotiate with El Paso. Do we push actual value, seasonal shape, or
unwind costs?

Phillip