Ed,

Here are the updates for the following contracts:

MCV contracts have been cured for the month of February 2002. Supply was purchased from MidAmerican Energy. A prepayment of $1,158,864.00 was wire to MidAmerican on January 30, 2002.

Locations Price Volumes Total $
PEPL-field $2.02 5,000/d $ 282,800
ANR-SE $2.05 4,000/d $ 229,600
Trunkline-ELA $2.08 11,100 $ 646,464
$1,158,864

January 31, 2002 Gas Daily publications posted Nymex settlement for March 2002 at $2.08. Daily cash posting were as follow for gas flow January 31st. PEPL-OK at $2.02, ANR-SE at $2.03, Trunkline-ELA at $2.06

Based on our meeting with Kinder Morgan regarding NGPL-NSS storage contract# 114786 and #114846. They are expecting demand payment for the month of December (They are allowing January charges to be paid at a later date) from ENA before allowing us to do a permanent release and/or an in-field transfers. Ruth C. is in the process of filing out a cash request and wire transfer form. She will then submit it for approval and to the cash management committee. This process normally takes 5 days. We are recommending that the process is expedited so that we can get the storage service and inventory sold. If we pay today, we could potential sell these assets as soon as Friday.

I will be out on Monday. If this deal does not close Friday, I will give Joe Parks the necessary information to close the deal on Monday.

Sylvia