Summary of Tom Brown Meeting

I wanted to provide a summary of my meeting with Tom Brown today. I met with
the Business Development Director, Bob Mustard.

1) Tom Brown (as 45% owner of Wildhorse) is pushing Kinder Morgan to come up
with solutions to the production problems (quality, pressure, et al)
currently being experienced in the Piceance Basin.

2) Tom Brown is also encouraging KMI to develop plans to take Crescendo (and
other producers) low Btu gas; they see these as a new business opportunity
for Wildhorse.

3) Tom Brown is focusing their drilling efforts in other regions of the
Rockies, therefore TBI would be interested in discussing Entrada development
ventures with Crescendo. Bob worked at Amoco with Ken Krisa and is very
familiar with the nitrogen treating technology. (I passed all this info on
to Ken/Jim).

4) Here's the interesting part...Bob discussed (confidentially) that for the
past 6-8 monthsTom Brown has been trying to negotiate a buy-out of Kinder
Morgan's interest in Wildhorse (they have a right-to-match provision in their
LLC agreement). The snag is on the last increment of valuation which is now
being negotiated by the very top mgmt (Kinder & Evans). If they are
successful, (which he thinks TBI will be), then TBI will turn-around and look
to spin off the non-strategic systems (like the Piceance Basin assets) to
third party purchasers.

This conversation with Tom Brown led me to a worst case scenario with regard
to our negotiations with Wildhorse..............Wildhorse has been
slow-playing negotiations since I first met with them in late May and #4
above may be the reason why. Now that we've sent the letter recently to
Wildhorse requesting (essentially) to clarify their understanding / status of
the contracts so we can get to work, my feeling (based on the transaction
between KMI & TBI) is that Wildhorse may try to continue stalling until their
transaction with TBI is complete, (how much longer will this take?). Of
course, if the transaction is completed, TBI has already made it clear they
would like to sell this system, so even if ENA is interested, will TBI
negotiate a gathering deal during this transition period or delay until the
system is divested?

The point is this......I'm anticipating a generic, non-commital response to
Crescendo's letter from Wildhorse. Although I realize there are no time
deadlines in the contract, could you suggest anything we can submit in
writing to encourage a quick resolution to our contractual issues in the
event my above worst case scenario begins to play itself out?

I'm off to Grand Junction to meet with Wildhorse. I'll keep you informed of
any developments.

Thanks.

Dan