Re: Lost Creek Docs

Gerald, one thing that Chris asked for was an expansion of the area in which
Lost Creek would agree not to compete for gathering. They asked to include
Long Butte in the area in addition to Madden. Both Mark and I have rejected
this idea as I have already had discussions with the operator of Long Butte
about gathering their gas on Lost Creek. That really wasn't the deal to
begin with anyway. Also, have you drafted the ENA IT gathering agreement
with Lost Creek? We really need to execute that thing in the next two weeks!

I just got off the phone with Chris at BR. He has reviewed the agreements
with Lee and Lee had a couple of points. One is if the Administrative
Manager goes to a cash-out method of balancing the system for some reason,
and Lost Creek owes under the balancing provision, where do the funds come
from? I know that it would come from the sale of the excess gas that has
been delivered to Lost Creek but I guess it is now clear how the gas is sold
and how those funds are handled. The same would apply to funds received from
a shipper who is under balanced. Again, Lost Creek would use the funds to
purchase gas to restore line pack but what about the excess funds? How does
Lost Creek purchase the gas? Actually good questions. Also, Lee had some
clean up language he wanted to propose on the fuel disposition issue. Would
you call Chris to get that and discuss it directly with him? If you want me
on the call, just let me know.

Thanks...James