Project Triple Lutz/Tarantula

Guys, as a follow up to our meeting today, I thought I would put together a
list of deliverables agreed to in the meeting. The goal would be to have a
definitive strategy for HPL and storage assets by the end of July that could
be acted upon.

a) Elimination of the Entex contract - current value - John L.;
b) Storage value algorithm incorporating spread values, increasing intra-day
and monthly volatility and blowdown values - Jean M, John L, Jim S.;
c) Storage acquisition targets and issues surrounding value/execution - top
5 to 10 for blowdown and tarantula strategy - Jean M, Julie G.;
d) Structure, value, cost and issues surrounding Bammel "header" - Jean M.;
e) Project Torque - definitive balance sheet, income statement and
contribution margin statement for HPL - Wes C.;
f) Establish viability of selling HPL assets - small private placement -
working with Lehman to finalize value, exection risk, timing, structure et al
- Patrick W.

I would like this group to get back together in the fourth week of July to
determine a final action plan.

Regards
Delainey