Phone Conversation with TNC

Today I spoke with Jean Calhoun of the Arizona Chapter of The Nature
Conservancy about the proposed Sundevil Pipeline Construction Project. She
was very cordial and appreciative concerning Transwestern's proactive efforts
to contact not only her office but all federal and state agencies which may
have jurisdictional lands impacted by the project. Although the proposed
route of the pipeline corridor has not been firmly established, she did
offer some general, yet valuable information concerning the geographic area
which exists south of Flagstaff into roughly northern Phoenix.

The area south of Flagstaff into Phoenix crosses of three major ecological
regions identified by the TNC with major biological diversity of plants and
animals. The TNC has completed published studies on two of the regions. The
TNC has requested that should this project be apporved, these publications be
used to assist in the environmental studies which will need to be completed
prior to construction and approval by FERC. To the south and east of
Flagstaff is a sensitive portfolio consisting of the Verde River which is of
ecologic interest due to the abundance of endangered fish and bird species
which live in and around the area of the River. This river could be
impacted by the pipeline due to its meandering in a southwesterly direction
across Arizona.

I have contacted other state and federal governmental agencies, in addition
to the TNC, and all parties have expressed difficulity in assessing the
environmental impact of a project of this magnitude without knowing the
pipeline corridor route. Part of this concern is due to the extensive and
unique biological diversity of Arizona. I think we will have a better handle
on how we address the environmental concerns and opportunities when this
piece of the puzzle is completed and also how much more specific and helpful
the agencies assistance will be when identified areas are known.