Proposal to Caithness Big Sandy

Attached for your review and comment is a broad outline of a rate proposal to
Caithness for the construction and operation of the 40-mile lateral to the
Big Sandy project. This non-binding proposal was requested by Caithness'
consultant, George Briden, as a starting point for modeling the economics of
the project's gas supply and a basis for further discussions aimed at
designing an appropriate deal structure. For your information, James
Centilli calculated the transport rate based on the (+/- 30%) $20.33MM cost
estimate with a ten-year (contract) amortization.

I plan to put this in the mail by the close of business tomorrow. If you
have any suggestions, please let me hear from you by mid-day. Thanks.