Subject: Bullets 8/18
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Fri, 18 Aug 2000 02:00:00 -0700 (PDT)

Deals Closed--
 --Arizona Public Service - We sold 14,000 MMBtu/d to APS for April  - Oct, 
2001 from EOT - Topock for $0.23.  This was the space we had tried   to sell 
using the IOS last week.  The high bid then had been $.138/MMBtu and we 
rejected the offer.  APS had not been a bidder in the IOS.

 --CIMA Energy agreed to an IT agreement for 5000 MMBtu/d on the Crawford 
lateral.  This is an East-to-East deal at $0.065 plus fuel for 14 months   
beginning Sept 2000.  This new shipper on TW will generate additional revenue 
(had shipped under a Duke FT for $0.02).

 --Texaco has agreed to extend its contract from Red Cedar to Blanco from 
January 1, 2001 through December 31, 2002 at $0.045.

 --Red Cedar - We have a verbal agreement on a 5 year deal with Red Cedar.  
Final details are being negotiated but the volume would range from  100,000 
to 150,000 MMBtu/d.  We will need to spend approximately $375,000 to expand 
the metering capability of the Arkansas loop.

 --Sempra has agreed to an FT agreement for Ignacio to Blanco for 30,000 
MMBtu/d.  The term is calendar 2001 for a $.06 rate.  We have approximately  
30,000 MMBtu/d of remaining space available.

Burlington Resources - Burlington claims we are limiting production from 
their Val Verde Plant because TW is unable to fully accept all the 
nominations of gas under the current operating agreement.  They claim 
approximately $135,000/month in lost revenues.  We are pulling together the 
data on exactly which days we have not been able to take BR's gas.  Thus far 
BR has rejected our revised wording in the interconnect amendment, 
specifically "best efforts" and "subject to operating conditions on TW", so 
we will need to revise this further.  We offered alternate receipt point 
flexibility at Ignacio and alternate delivery point flexibility at El Paso 
Blanco on their Jackrabbit contract but they do not think this is sufficient 
to agree to amend the interconnect agreement.  They have suggested we 
consider giving them a deeper discount on their San Juan - Waha contract 
(80,000/d, $0.14, term 11/30/06) but this is not acceptable to TW.  We are 
evaluating all options.

SouthWest Gas notified us they are within 90 days of being capable of 
receiving gas through the new interconnect in Nevada.  Under the terms of the 
agreement, we are now obligated to pay SWG the remaining CAIC of $417,500.

Transport Options Tariff--  Meetings were held this week with customers and 
internal personnel to flange up remaining details of how the  program will 
function.

Mid-year Employment Reviews were completed for all Team Members this week.