RE: Transwestern - Dispute with SoCal Gas

Bill good questions. Lets discuss. Do you know what the statute of limit=
ations is and when the clock starts. Your insight would be appreciated. T=
o date, TW has only filed at FERC based on the thought we thought the issue=
s were FERC issues and thought the FERC process would provide the least exp=
ensive and most expeditious forum. The belief was that a state court would=
defer to the agency. TW's real hope is to get a settlement through mediati=
on or, if we need to, some other form of FERC ADR. =20

-----Original Message-----
From: =09Rapp, Bill =20
Sent:=09Wednesday, October 24, 2001 5:03 PM
To:=09Porter, Gregory J.
Subject:=09Transwestern - Dispute with SoCal Gas

=09
=09Greg,

=09=09Thanks for sending me copies of the pleadings in the enforcement acti=
on that we've filed against SoCal Gas at FERC. Just a quick question. Shoul=
d we initiate a state court action against SoCal Gas now so as to minimize =
any claims that could potentially be cut off by the applicable statute of l=
imitations? I notice that the controversy goes back to 1996. It may take a =
while for FERC to resolve this. Have we concluded that even if FERC rules i=
n our favor we would have to file a separate action in state court to enfor=
ce our rights under the transporation agreement(s) with SoCalGas? Even if w=
e file a state court action now, SoCal Gas would probably argue that the st=
ate court action should not proceed until FERC reaches its decision. I don'=
t know how strong an argument this is, but even if SoCal Gas keeps us from =
moving forward with a state court proceeding, would merely filing suit in s=
tate court stay the statute of limitations? I'm sure you've thought through=
these issues already. I'm just trying to get up to speed. Thanks.