1.0 ALL- The attached DRAFT letter is confidential and to remain with
addresses only, except as Kay Mann deems necessary to share for coordination
purposes.

2.0 ALL- I have had a couple calls with Jim Bouillion. He is personally
involved in facilitating the insurance inspector visit.

3.0 Per the results of the Wednesday Ben Jacoby meeting, as requested by Kay
and Ben I have prepared a first draft of a letter to SW responding to the 15
Feb SW letter.

4.0 Kay-

a. Per the meeting discussion I have put my name as the recipient of SW on
future correspondence on this matter. John S may discuss this with you, we
may want to change this now or at a later time.

b. I based the delivery LD on the max amount SW is liable to pay, 20% of
the PA. If they deliver by end April the total amount would be around $7.5
MM, but given the cap, they top out at $4.9 MM. You may want to examine the
demanded amount in light of when you were impeded.

c. I may want to change the letter signature name to Steve Stein in that
Keith Dodson has tasked him to be the execution lead responsible from an EPCC
perspective; mindful that EA has the lead as to where we go on this.

d. I look forward to your comments, fixes and direction.

Regards

John