Capacity Options on TW

Attached is a preliminary draft of a filing for capacity options on
Transwestern. The attachments include a filing letter, proposed tariff
language and a proposed form agreement.

Obviously there are still quite a few details to be worked out. I am
distributing a draft at this early stage in hopes of initiating a dialogue
about the larger issues first. A few that come to mind are whether we want
to commit to selling options online, how best to explain or justify the
option fee, and what specifically in the industry has changed such that FERC
should depart from existing policy and allow TW to essentially reserve future
capacity for shippers. Please let me know your thoughts on these and any
other issues.

I would prefer to wait to discuss comments on wording, other conforming
changes to the tariff, and other comments concerning form until after we have
resolved the substantive issues. Thanks.