May PCB Meeting Notes ET&S and PG&E

1. Status of Mainline Filter Separator Project.

Earl Chanley has indicated that the June 1 target date for in service is on
schedule. There will be 2 mainline separators for each mainline system.
PG&E is also on schedule for June 5 & 7 pipeline tie ins to each bank of
separators. The only outstanding issue is an air permit for the 1200 gallon
tank at the separator installation site. This is a PG&E issue and will not
create a delay of the in-service date. All other permits and approvals,
according to PG&E, are in place.

PG&E has stated that after operation of the separators, they will want to
discuss maintenance issues with ET&S.

Post construction of the separators will result in 2-50 ft joints of 34 in.
pipe. PG&E will perform wipe tests on each piece to determine reuse and or
disposal. If the pieces test to be regulated by state and federal, PG&E
will consult their legal group to determine whether they will decon or
dispose as a PCB regulated material. If the decision is to decon, PG&E has
indicated that they will seek another contractor other than Vector to reduce
costs associated with cleaning the pipe.

2. Review Test Results of Ongoing Gas Sampling.

Update since last sampling discussion in San Francisco. Good news is that at
MP 353 (kettleman C/S), latest sampling showed non detect. The third round
of sampling taken at this location is not available. All other samples
collected at suspected liquids locations areas showed PCB liquids results to
be decreasing toward Hinkley C/S. Line 311 is a 12 in. line which travels
north to Ridgecrest, Ca also feeds IMC Chemical Plant. Previous testing
showed non detect. Most recent sample showed 22 ppm. Second sample has
been collected but results are not available. Samples are proposed to be
collected at the IMC Chemical Plant. There is a potential for the IMC Plant
to be PG&E's biggest single commercial customer and therefore, this site is
considered to be a sensitive area relating to PCB's.

Kern River Station continues to show PCB concentrations of 1-3 ppm. The
gas from this location feeds into a portion of the Southern California Gas
Co. system which is PCB free.

3. Discuss Future Sampling Process and Frequency.

West end of the PG&E system has not been sampled. The east end of the system
has at least 2 rounds of sampling conducted. Sampling frequency for these
locations is once every two weeks. When a sampling location is shown to
have liquids, it is resampled two weeks later and is included into the
sampling program.
Transwestern has requested to PG&E to increase the collection reservoirs
under the meters and valves to allow greater removal liquids from the
pipeline system. At the present time a small nipple is inserted into the
bottom of the valve and meter body for the liquids collection. By
increasing the nipple size, a greater collection container will be produced.

It was mutually agreed that until installation and operation of the two the
separators, PG&E will continue to sample each location once every two weeks.

4. Review Criteria Used to Determine Need for Tap Filter/Separators.

Originally 29 locations were identified to receive the small filter
separators. These locations were considered Priority 1 sites. The
determination of a Priority 1 site is based upon the following criteria: 1)
a location where liquids were collected twice and 2) ppm concentration of
the liquids collected was < 1.0 ppm.
Based upon these criteria, Ridgecrest and Bakersfield (Kern River Station)
have been added to the list of Priority sites. Flow through at the Kern
River location is 300-500 mmscf/day. Samples collected at this location have
shown PCB's in the range of 1-4 ppm. PG&E's agreement with SoCal at this
location is <1.0 ppm PCB's in the liquid phase. PG&E has indicated that
there is some sensitivity at both of these locations due to the large volume
of gas deliveries.

PG&E and Southwest Gas have been in discussions concerning 5 additional
filter separators on the Southwest Gas system due to substantial customer
load at these locations. Southwest Gas feels it needs additional protection
at these sites. PG&E has stated that Southwest Gas is beginning to express
additional concern for PCB's at their interconnect locations.

5. Review and Discuss List of Proposed Tap Filter/Separators.

a. Siting, Design and Engineering

b. Cost Estimates

PG&E passed out a booklet pertaining to 9 small filter separator sites, plus
an additional sheet for 16 sites with back-up to be produced in the next
week. . Four of these separators have been installed. A total of 45 filter
separators may be proposed for installation.

The cost estimates for the additional small volume F/S up to the 29
indicated at the last meeting is 1.2 to 1.3 million. The sampling costs have
not been included in this number. Estimates are being reviewed on a per sites
basis as PG&E presented.

One PG&E customer, a cement plant, has inquired about PG&E deconning portions
of their plant that has PCB's. PG&E is in discussions with the cement
company. PG&E has informed the cement plant that it will evaluate the
success of the filter separators to be installed on the line feeding the
cement plant prior to committing to any action. If the deconning occurs, it
will be a 2001 project.

6. Ongoing Consideration of Additional Customer Protection.

Compressor Oil Control. The majority of liquids collected at strategic
sampling locations is compressor oils. Transwestern has requested access to
the PG&E C/S to study lube oil systems. There are 22 compressors at the
Topock and Hinkley C/S's. Transwestern will conduct a study of technologies
to assist in reducing oil from entering the pipeline system. Earl will
coordinate site visits with Glen Riddle.

7. Other Issues or Concerns.

Earl requested additional information on invoices submitted after January,
2000. rod will send back up and support data of existing invoices sent to
Transwestern.

PG&E is considering increasing gas receipts from Transwestern to 250-300
mmscf/day cap by May 15. Over time PG&E will look into their C/S
configurations to handle the increased gas flows to 450 mm scf/day.

8. Next Steps.

The next meeting was proposed in 45 days. This time period will allow
inspection and operation of the mainline filter separators and collection
additional sampling data at new and suspected sampling sites. The location
of the next meeting was tentatively scheduled for Flagstaff AZ on July 13 as
some of the PG&E meeting attendees will be in Flagstaff during that week on
other business.