RE: Operational Issues - Memo Attached

Rich / Larry / Earl:

I sent a letter to Mike Katz, copy to Rod Boschee, that formally restated
what I had requested at our last meeting in San Francisco. They responded
with what they agree to, which I believe we can (and will have to) live with.

I will not be attending the meeting this Thursday due to conflicts, but will
be available to attend via phone.

1. TW will fund in year 2000 the installation of the necessary PG&E customer
filter separators and the additional costs related to PG&E's PCB testing.

action items
GQC: Thoroughly review PG&E customer F/S sites and costs. Formally get
agreement.

Earl: Prepare a new work order for $3,000,000 naming specific sites and costs
related to sampling and analysis.

Note: I have requested an additional $3,000,000 for this years Capital Plan
to do this work, which Bill has received verbally from Stan.

2. PG&E will lift the 250 / D limit and move to market driven conditions of
up to 300 / D at Topock on May 15 with on-going monitoring to ensure no
further migration of PCB's. They wish for a six month test on this condition.

action item:
Rich: Review formal pigging and sampling plan with Tiny and Needles Team.

Rich / Larry: Increase or reinforce pigging and analysis on Topock Lateral,
as well as any mainline pigging and analysis required due to Gallup increase
volumes.

3. PG&E will delay / defer consideration of deconning the Topock Compressor
Station until 2001. Tests in 2001 will determine further consideration.

4. Establishment of a gas quality committee (GQC): Larry, Rich, Earl. (I will
continue as the lead on this with Louis Saldano available)

GQC: Take and distribute formal minutes with agreed action items.

Mike

---------------------- Forwarded by Michel Nelson/ET&S/Enron on 05/08/2000
09:25 AM ---------------------------

"Boschee, Rodney" <RAB9@pge.com< on 05/05/2000 12:58:39 PM
To: "'Michel.Nelson@enron.com'" <Michel.Nelson@enron.com<
cc: "'Louis.Soldano@enron.com'" <Louis.Soldano@enron.com<, "Katz, Michael"
<MAK9@pge.com<, "Johnson, Kirk" <MKJ2@pge.com<, "Russell, Curt"
<GCR4@pge.com<, "Kirkpatrick, Eric" <EGK1@pge.com<

Subject: RE: Operational Issues - Memo Attached

Mike,
In my haste I failed to attach the letter. Just one of those senior
moments.

<<twpcb37.doc<<
Rod

< ----------
< From: Boschee, Rodney
< Sent: Friday, May 05, 2000 10:53 AM
< To: 'Michel.Nelson@enron.com'
< Cc: Louis.Soldano@enron.com; Katz, Michael; Johnson, Kirk; Russell,
< Curt; Kirkpatrick, Eric
< Subject: RE: Operational Issues - Memo Attached
<
< Mike,
< Mike Katz suggested that I respond immediately to your draft letter
< outlining the key points of your conversation and our previous discussions
< regarding the ongoing attempt to contain PCBs in PG&E's Line 300 A & B
< downstream of Topock. Attached is you letter with PG&E's modifications
< and clarifications that reflect our understanding of the arrangement. If
< you or Lou have any questions please give me a call. Otherwise,I will see
< you on the 11th in Las Vegas.
<
< Rod Boschee
<
< ----------
< From: Michel.Nelson@enron.com[SMTP:Michel.Nelson@enron.com]
< Sent: Thursday, May 04, 2000 9:41 AM
< To: Katz, Michael
< Cc: Louis.Soldano@enron.com; Boschee, Rodney
< Subject: Operational Issues - Memo Attached
<
< <<File: MA Katz-5-5-00.doc<<
<
<
< (See attached file: MA Katz-5-5-00.doc)
<
< If you are unable to read the attachment, call Judy Kudym at
< 402-398-7601.
< Signed original will be mailed.
<
<
<

- twpcb37.doc