Powder River Gas Purchases

Dear Art,

As we discussed, Enron North America (ENA) is very interested in purchasing
your Powder River gas supplies at Glenrock. The market at Glenrock is
forecasted to be very constrained over the next 12 months until the loop of
the WIC Medicine Bow Lateral is completed. Therefore, we are not able to
offer a firm price or firm takes during this period. However, ENA is the top
natural gas marketer in North America, and we hold firm transportation on WIC
and CIG which is complimented by our firm markets on KMI. These skills and
assets enable us to offer you competitive pricing and takes during this
difficult period. Aligning yourself with ENA will prove to be valuable as
you try to bring to market your estensive Powder River production.

We will work with you to develop a portfolio of daily and monthly pricing
which will mirror you production requirements. And as you get a better feel
for when your production will ready to flow we will be able to provide you
the market price at that time. For consideration, we are buying other gas
under similiar monthly arrangements and are offering the following terms for
the month of January.

Price: 80% of forecasted daily volume at Inside FERC CIG North System
first of the month Index minus $.12
20% of forcecated daily volume at Gas Daily CIG North System
Mid Point Index minus $.15

Generally if gas is expected to begin flowing during the month we will price
it at 100% Gas Daily minus the current market discount until a stable
production level is established.

As you get a better idea of when your gas will flow, let's discuss the
pricing at that particular point in time. It would be helpful if you could
provide us with a forecast of your production for the next year in order for
us to build your volumes into our planning forecast.

You should have received a draft contract from our attorney, Gerald Nemec.
Please review it and discuss any questions you may have with Gerald.

We look forward to doing business with you and your company in the future.

Sincerely

Mark Whitt