RE: Shut in comments and EOG....

This is true. They will not tell us for how long, but they did shut-in 45,000/d.

-----Original Message-----
From: Lavorato, John
Sent: Thursday, October 04, 2001 9:00 AM
To: Grigsby, Mike
Subject: FW: Shut in comments and EOG....

-----Original Message-----
From: Arnold, John
Sent: Thursday, October 04, 2001 8:51 AM
To: Lavorato, John; Gaskill, Chris
Subject: FW: Shut in comments and EOG....

-----Original Message-----
From: Abramo, Caroline
Sent: Thursday, October 04, 2001 7:44 AM
To: Arnold, John; Quigley, Dutch
Subject: FW: Shut in comments and EOG....

- first we are seeing of this.......will ask around if the downside level of $2.25 has been discussed with our guys ....
- Gas Daily this morning page 2 comments on potential shut in on Colorado Interstate Pipe due to too much water in the pipes.Finding out more about the volume, timing, likelihood etc.

Comments from SSMB E & P report.....

"LOWER NATURAL GAS PRICES LEAD TO "MODERATION" IN PRODUCTION

With the significant pull-back in natural gas prices, EOG Resources announced
that it has already scaled back drilling activities during the second-half of
this year and is also "moderating" production from existing wells, primarily in
West and South Texas where it has shorter-lived wells. Production "moderation"
of roughly 50 MMcf/d, or about 6.0% of the company's current total North
American natural gas production, commenced in September and is expected to
continue through at least November. On the drilling side, the company is
currently operating 40 rigs versus a peak of 51 this past summer and expects to
end the year with around 35 rigs operating. Nonetheless, the company is
maintaining its $800-900 million capital program for the full-year, although
actual spending is now expected to come in toward the lower end of this range.
Importantly, EOG management stated that prior to production "moderation" and
reduced drilling, the company was on course to achieve its previously stated
North American production growth target of 4.0%. With regard to 2002,
management is still optimistic that it can achieve a 4.0% production growth
next year if composite spot natural gas prices average at our current forecast
of $2.25/MMBtu."
<< File: gasdaily.10.04.2001.pdf <<