Flow change for Fuels Cotton Valley Redeliveries into HPL

Saturday, March 3, the redeliveries into HPL from Fuels Cotton Valley for
the Eastrans deal will increase to approximately 19500 MMBtu/dy. This
change should continue through March 5th or 6th. The reason for the change
is an operational emergency. DEFS typically delivers approximately 12200
MMBtu/dy into TXU Lone Star. This delivery will not be able to occur
because the Alford B compressor needs to get into the shop for maintenance.
This compressor will be out of commission for the month of March. The
Busby compressor will compress the usual 7300 MMBtu/dy of Fuels Cotton
Valley redelivery gas as well as the 12200 MMBtu/dy of TXU Lone Star
redelivery gas. A different redelivery point with TXU Lone Star is being
established and should be available by March 5th or 6th. At this point in
time, we will take the HPL Fuels Cotton Valley redelivery gas to zero and
balance the redeliveries between the two points. Therefore, DEFS will not
change the delivery or redelivery nominations in place for Eastrans. After
the new TXU Lone Star redelivery point is put into place and the points are
volume balanced, it is our intent to have redeliveries of 7300 MMBtu/dy
from Fuels Cotton Valley and 22700 MMBtu/dy into PG&E (which is what is in
place effective 3/1/01) for Eastrans.