Re: Reorganization/Promotion

We did talk about the creation of these new positions within gas support. I
have also discussed this at length with Brent, and agree that the shift of
manager positions to front to back looks across each region (eliminating the
OA and Deal Validation manager roles) makes sense. Upon the recommendation
of Susan and Brent, I am comfortable with appointing Jeff Gossett as the
manager of the West region.

Kim Melodick
04/17/2000 10:46 AM
To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Reorganization/Promotion

Susan indicated that she had a conversation with you about these promotions.
Are you comfortable going forward with them?
---------------------- Forwarded by Kim Melodick/HOU/ECT on 04/17/2000 11:38
AM ---------------------------

Susan Harrison
04/14/2000 03:49 PM
To: Kim Melodick/HOU/ECT@ECT
cc: Sally Beck/HOU/ECT@ECT, Brent A Price/HOU/ECT@ECT, Steve
Jackson/HOU/ECT@ECT
Subject: Reorganization/Promotion

We are in the process of reorganizing several functional groups within Gas
Operations. With this change, we want to promote Jeff Gossett to Manager
effective May 1. The following describes the reorganization and
justification for the promotion.

The Risk Management, Operational Analysis, Transport Rates and Deal
Validation groups will be realigned into four regional teams and managed by
Business Controllers. There will also be a centralized Controls group with
2-3 individuals that will be managed by a different Business Controller.
With this realignment, we are creating five new manager positions (four
regional and one Controls) and eliminating the two manager positions for the
Deal Validation and the Operational Analysis/Transport Rates groups. The
regional Business Controllers will be responsible for managing the day-to-day
activities of their regional teams, including interacting with the Trading
Desk Directors, and the Controls manager will work across the regional teams
to ensure consistency and efficiency in our processes.

The new Controller positions will be filled as follows:

West - Jeff Gossett
Central - Carrie Hollomon
East - Will Kelly (Senior Specialist)
Controls - Kathryn Cordes
Texas - TBD (Brenda Herod to hire)

We are promoting Jeff Gossett at this time due to the responsibilities he
will be carrying in the Controller role in addition to his current
responsibilities for the NGP&L and Benchmark functions.

Will Kelly's performance will be evaluated during the next few months to
determine if he will be the permanent Controller for the East region. If he
performs well in this role, mid-year promotion will be pursued.

Please let me know if you have any questions. I will follow-up next week to
discuss a salary adjustment for Jeff Gossett.

Thanks,

Susan