Mike I wanted to give a short update on the latest events related to the PCB
issue with PG&E. Transwestern met with PG&E this last Wednesday with an
agenda that included some sharing of sampling results collected downstream of
their first C/S (Topock) and on out west toward their main distribution
areas. With respect to the most recent sampling data, Low PCB concentrations
(N.D. to 38 ppm) have been detected in drips and interconnects between Topock
and Hinckley C/S. The good news is that PCB's have not been detected
downstream of Hinckley which is approx. 160 miles from the Topock C/S. PG&E
has also initiated construction and installation of some drips and small
separators at locations where their gas feeds into other lines or directly
into customers. the proposed installation date for the large mainline filter
separators is still on target for 6/1/00.

Now for the bad news. At the conclusion of the meeting, PG&E has stated that
they want their Topock C/S decontaminated. This includes all piping and
equipment. I stated to them the impractabibility and zero success rate of
removing all the PCB's from their system and that there would be no
quarantees that the deconning would be successful. The contract PCB
deconning companies only have permits which would guarantee cleanup to 10
ug. They were told that it would be impossible to clean everything and that
in all probability the PCB concentrations would be showing up as the gas
continues to move through the system. Additionally, the better remediation
approach would be to continue to remove PCB containing liquids at strategic
locations. Even with this, they were pretty insistent that their management
wanted the facility cleaned. Preliminary $$ estimates range to approx. 3-5
million.

I think that this is only the "tip of the iceberg". If they are successful
with this action, the pipeline system will be next. Their pipeline is not
piggable and to make it such would require replacement of pipe, valves etc.

Ill keep you informed on this,,,,,,,