Crescendo / Wildhorse

The Wildhorse Operating Team met yesterday (Thursday 08/10) and I was
informed this morning that Wildhorse has decided to present us a formal
proposal to gather Crescendo's Entrada gas from San Arroyo. Wildhorse told
me to expect the proposal by Friday 08/18; I'll continue to monitor next week
to ensure they do not delay any further.

The nature of the project would be similar to what Wildhorse discussed with
NG Resources in the past...Wildhorse will construct certain pipeline segments
in order to isolate a seperate low Btu gathering line from San Arroyo to
Crescendo's proposed plant location at Badger Wash.

Obviously, when Ken (or myself) receives the proposal, a group meeting would
be very beneficial as I'm sure there will be numerous questions/issues for us
to contemplate.....gathering capacity, structure, contract issues, plant
issues, etc.

Talk to everyone at the Tues. meeting.

Dan