Effects to Wildhorse for Entrada Gathering

Gerald,

In response to your request to itemize effects to Wildhorse of moving the
Entrada gas from San Arroyo to the BWGP, I put together the attached list.
Audrey and I had a chance to review this yesterday (in untyped form), and
you may want to visit with her as well. Audrey also took back some maps
yesterday that show the "Mesa" pipeline and may be helpful in visualizing
the gathering system and the issues. Please reveiw and let's discuss.

Also, Joan asked another question (left on my voicemail). I think this
question may be from Scott - " Has Wildhorse been indicating that we can
flow to NWPL in the past? What is the history here? May answer is as
follows:

As far as the Entrada Gas, we have always discussed taking it to NWPL - and
only NWPL. Included in the Open Season Offering NG Resources made with
Wildhorse, we allowed IGI (a company that holds firm capacity on NWPL) to
include a gas purchasing proposal for this gas. We really never discussed
the Dakota gas delivery to NWPL until June/July. We could not change the
nominations until October due to the long term gas sales contract assigned
to us in the Enogex acquisition. We were under the impression that the long
term contract was the only reason that Enogex was not selling gas on NWPL.
(Wildhorse changed directions of flow along the old Mesa line in spring of
1988. See note 2. in the attached word document.

I will call you later today to discuss further.

Ken Krisa

- Wildhorse - affects.doc