Agreement with Rod Boschee (PG&E)

Following our conference call this morning and the consensus we reached, I
placed a call to Rod Boschee and we discussed the following items. One of
the key points Rod made is summarized at bullet four below. Evidently, they
want to take the maximum amount of gas from us for as long as they can.

We appreciated his phone call and the cooperative effort that was working
well. I told Rod that we were also very pleased with the results experienced
since the June 29 cleaning and testing of the separators. As far as we knew
TW's system was staying dry and we were moving no significant liquids into
their separator.
TW would go along with PG&E and agree that we would not take the system down
in mid-September to re-check the separators at this point since we were not
seeing any alarming numbers or quantities.
In place of taking the system down in mid-September, TW and PG&E would watch
for an upset and a large quantity or a higher concentration - if that occurs,
then we would immediately get together and plan a time to take the system
down and check things out.
PG&E is requesting that TW keep flow rates up the rest of the summer, all
fall and into the winter. PG&E might want us to take the system down and
check the separators sometime next year - but they want to talk about going
as long as we can before we do that.
Rod agreed that we would still meet as planned in October in Las Vegas.
(Caveat: Because of all of the EOTT things going on and other related
issues, it would help my schedule greatly if we could shift that proposed
meeting from October 10 to anytime the week of October 16 or October 23? I
would appreciate it if Mike Nelson or David Roensch could arrange the meeting
to be delayed a week or so). The agenda for the meeting would be related to
updating everyone on testing results, scheduling the down-time at a mutually
agreeable time next year for checking the separators, build-out of certain
facilities on their system related to receiving TW's gas, etc.
We would agree to do nothing about the 1800' of interconnecting pipe at this
point.
If you have any questions, please advise. John Shafer