Gas Lift Sales

As some of you may be aware, we have had a tremendous amount of problems with
Gas Lift sales customers. Gerald Lofton has been working with Ann Elizabeth
to resolve many of the issues that we inherited, from the simple collection
of outstandings funds due HPL to making sure contracts are in place. We are
the sole group within HPL that is now responsible for these types of
transactions. Anyone else making a request through legal should be directed
back to Gerald Lofton so that our efforts are coordinated.

It has come to my attention that HPL recently approved the assignment of the
LaMay contract, which did not come through this department for approval and
execution. We have been trying to collect old funds from this outfit for
several months, applying our offset language to recover funds due HPL. We
must be coordinated in our efforts in dealing with these types of customers,
making sure that all issues are in order before we grant assignment. I
absolutely need the cooperation of the legal department in making sure any
and all activities involving gas lift sales contracts are routed through
Gerald or myself, not through other sectors of the organization. Thank you
for your cooperation.