EOTT concerns with Fuller's resignation

I had dinner tonight with a Robert Jacobs EOTT V.P. West Coast and Ed
Attanasio EOTT Senior Counsel. This dinner meeting was put together by Gary
Fuller. Both Jacobs and Attansio expressed serious concern about ETS's
abilty to provide environmental expertise and representation at the EOTT
Bakersfield facilities due to Gary's departure. They were concerned because
of the numerous visits by state regulatory personnel conducting unnounced
onsite inspections and the fact that EOTT may not have an onsite
environmental representative. They were highly complementary of Gary and
were aware of the good repoire he had established with the agencies and they
felt they would be losing this repoire and credibility if his position was
not filled with a person located in Bakersfield. As a courtesy to our
customer, I told them I would pass on this information to the powers to be in
Houston.

After a review of the environmental records and the compliance load for what
Gary has responsible for, Im wondering if we should fill the Bakersfield
position, or move that position to Midland and possibly use Gary as a
"temporary technical contact" for ETS. As you may or may not know, Gary is
accepting a position with a bakersfield consulting company which specializes
in providing operation services for energy companys. Gary will be in charge
of the environmental and safety responsibilities for those companies which
choose to use their service.

I understand that there is some environmental sensitivity in California that
does, at times go above what is required in other states. However, getting
the employees at the Bakersfield location on board with skill base pay will
alleviate much of the existing workload. What the employees can't handle or
issues that are above the skill base pay level requirements, can be handled
and addressed by Butch and myself with Gary's occasional assistance. Having
Gary as a technical contact living in Bakersfield will satisify EOTT's
concern of having an environmental expert available for those times when
agencies arrive unnounced and at the same time give EOTT the comfort and
security that they want by knowing that they will be represented by a person
of Gary's reputation and character.

In line with this, there appears to be a larger workload and work area in
MIdland rather than in Bakersfield. Remediation activites, permitting and
compliance will be a full time position with the EOTT, Transwestern and
Northern faciltiies which comprise the Midland area. In this area, there are
approximately 13 field teams to provide technical assistance and training
for. I feel this will be a full time job. I think we should give
consideration to possible using Gary's expertise on a part time basis in
Bakersfield and relocate and fill his position in Mildand, Tx.