Organization

After my discussion with Cutty today, I think any discussion of the
organization should wait until we have a plan for the operations group based
upon our meeting tomorrow. I plan to have the conceptual discussion with in
the staff meeting tomorrow had show the attached chart without the suggested
reporting shown on the chart. My thoughts are that we need to focus on our
key business drivers and develop the organization around these thoughts. I
have listed the key business drivers as 1) Crude Oil Marketing and Trading,
2) Crude Oil Pipelines and 3) Cash Management due to our MLP format.

I have reflected the organization on the attached chart which is preliminary
and has not yet been shown to anyone other than via this memo. The specifics
of the operational group has not been defined pending the outcome of
tomorrows discussion. I have held discussions with those groups that are
spread across more than one business and have ask them to define their
organization using the concept above. All activities that do not directly
effect one of the three business drivers needs to be reviewed for importance
and priority.

I do have some concerns that must be addressed and still need some input.