ABB Contract

Dave,

I am still diving into the depths of Tex-Mex, but cannot see a reason not to proceed with signing the ABB amendment as described in Salsa (4), as this amendment does not cost us anything up front and extends our build option to the end of the year.

There are a number of risks associated with the Presidential Permit process, the possible imposition of an open season by FERC, relationship with CFE, BPUB infrastructure enhancements and service charge structure, etc. which we should discuss prior to waiving our Conditions Precedent under the DeAcero contract on July 31.

Note that if we sign the ABB amendment and waive the Conditions Precedent along with DeAcero on July 31, we will want to immediately issue a Pre-Notice of the Notice to Proceed in order to ensure completion within the 502 day DeAcero commitment.

Dave