TW Negotiated Rate deals

As you requested, following are the facts for the media regarding the
negotiated rate deals that TW has recently done at rates in excess of the
tariff max rate. Please note that the first two transactions are already
public and the following information can be disclosed now. The third deal
has not been filed yet and will not be public until it is. That filing will
be made before Dec. 1, 2000.

General: TW has done three deals in the last week at rates in excess of TW's
maximum tariff rate. Each of the deals was done pursuant to TW's negotiated
rate authority, which FERC granted TW in 1997. (Order issued April 11, 1997,
Transwestern Pipeline Co., 79 FERC Par. 61,021). Pursuant to that authority,
TW has filed negotiated rate tariff sheets with the FERC, which are docketed
at Docket No. RP97-288. Details on the specific transactions are as follows:

Deal 1: Counterparty: PG&E Energy Trading
Rate Schedule: ITS-1
Volume: 30,000/day
Rate: $.90/MMBtu, inclusive of surcharges
Term: the one day period of November 15, 2000
Receipt points: NNG Halley, West Texas Pool
Delivery point: SoCal Topock

Deal 2: Same as Deal 1, except term is one day period of November 16, 2000
and rate is $.75/MMBtu

Deal 3: Counterparty: Sempra Energy Trading
Rate Schedule: LFT
Volume: 10,000/day
Rate: $1.00/MMBtu, inclusive of surcharges
Term: Dec. 1-Dec. 31, 2000
Receipt point: Bloomfield
Delivery point: PG&E Topock

All of the above information is contained in TW's FERC filings on these
transactions. No other information is available as TW does not comment on
specific customer transactions.