SoCal Meeting with Southwest Gas

I wanted to let everyone know that the meeting between Southwest Gas and
SoCal concerning presence of PCBs on the Southwest Gas system will be this
tuesday. I had an opportunity to speak with Ralph Komai today during the PCB
quarterly management conference call that Transwestern has with SoCal to
discuss PCB related invoices. As a brief summary, Southwest has had isolated
hits of PCB in liquids (232 and 132 ppm) and in wipe tests (10-100 ug/wipe)
in regulators on their system and they have asked Ralph if he would assist
them in the management and disposal of PCBs on their system. He wil also be
providing thoughts on how and why PCBs move in a gas pipeline.

I had asked Ralph not to mention about Transwestern's agreement with SoCal
for which Transwestern pays SoCal for 86% of their PCB costs. I had asked
him to only focus on the Southwest system. Apparently Southwest is not up to
speed with the PCB regualtions, however, enough so that they do realize that
the mega rule will impact their operations and Ralph will probably provide
input for that as well from an LDC standpoint.

I asked Ralph whether Southwest seemed excited or worried about the PCB
discovery on their system and he indicated that they were more concerned
about compliance with the PCB regulations. Ralph said he will let me know
the results of the meeting.