Good News

Louise,

Some good news for the weekend.

1. Unocal wants to enter into a LOI within the next 2-4 weeks based on a Term Sheet presented to them this September. It is a Storage/Transport/Compression deal being led by Ned Higgins. (Look in your Compression section, Upstream Products folder for more details.)

2. Eva Rainer has received four bids for the Napoleonville. At a minimum, we call sell all 330 acres, get it off the balance sheet and still make $800,000. Eva wants to do a counter proposal of $8500/acre. How badly do you want to get this deal done this quarter?

Julie is going to come in on Sunday to look at my Storage/Transport presentation. I plan also getting feedback from regional gas heads (Luce/Tyc/Vickers) as well as Neal and Hunter before meeting with Lavo on Monday afternoon. I guess I will have a busy weekend and Monday, but I think it will be well worth it. I have already briefly spoken to Hunter/Neal today - Neal is a much bigger supporter - Shively will do whatever Lavo wants. I would also like to show you the presentation prior to the meeting with John.

Don't worry - I already have next Friday registered as a vacation day.

Regards, Mrha