Proposed Trade Limits

Rod and Dan,

As discussed in this morning's meeting, we have taken a look at the types of trades that we feel appropriately relate to our underlying transport and storage business (basis, spreads, fixed price) and recommend the following limits for the trade policy:

VAR: $2 million
Net Open Position: 15 Bcf
Maturity/Gap Risk: 18 Bcf

I will set up a meeting for later in the week to discuss the approval process related to the policy and procedures.

Kent