Potential Write-offs

This is a follow-up on our efforts to identify potential write-offs in 2000
to utilize the possible availability of non-recurring earnings at the
Corporate level. Attached are spreadsheets for the 2nd quarter noteholders
reports balance sheets, including detailed breakdowns of balance sheet
items. We reviewed these schedules for possible additional write-off
candidates. This review confirmed that the big items had already been
identified (reg assets and south-end impairment reserve). However, reviewing
the spreadsheets reminded us that we have DOT safety user fees due in
December (~$1.1MM) and a $1.5MM annual payment to Mobil due by 1/1/2001.
While both of these items would more appropriately be charged to expense in
2001, we could probably accelerate them into 2000 without too much visibility.