PG&E/Southwest Gas Meeting

On tuesday of this week, Lou Soldano and I attended a meeting between the
above referenced parties concerning the issue of PCB's which had migrated
into the PG&E system. Southwest Gas is a customer of PG&E's and recieves
natural gas from PG&E for delivery to its customers, PG&E has prepared a
media statement which it is going to be sent out to those parties which
receive gas from interconnects testing positive for PCBs. As of today, only
the customer base around Needles, California will see the PG&E statement.

The two issues of note. First, Transwestern was able to make some minor
changes to the media statement to more clearly show in the statement that
this release of PCBs was an isolated incident and that all parties are
diligently incorporating measures to contain and manage this release.
A copy of the revised media statement is available upon request from Louie
or myself.

Second, PG&E and Southwest Gas have jointly agreed to conduct immediate
sampling activities at downstream interconnect locations on the Southwest Gas
system to determine if the PCB's have spread into parts of their system.
Results of this sampling will be presented in a meeting tentatively scheduled
in a couple of weeks. Transwestern will probably atttend this meeting.