Medusa Proposal Final Draft

Gerald,

Attached is the final draft of the Medusa Proposal. Tom Byargeon and Kevin
Miller need to review the language one last time, but there should not be
substantial changes to the text. The numbers will be finalized tomorrow.
For your information, I have included a "term sheet" which I believe
summarizes the conepts of the proposal. the term sheet will not be sent to
Murphy Oil.

We have already reviewed the numbers and concepts with our VP Jean Mrha. We
will have our last pre-submittal RAC meeting with Brad Larson tomorrow at
9:00 AM. Our bid needs to go out by end of day Tuesday.

Please call me and let me know your estimated timing on the legal review.
Also, please call if you have any questions or comments on the proposal.

Thank you for your support.

Kenn Loch
713-345-8962