Napoleonville Storage - Down and ESC

Ned, I reviewed our work with John Griffith. He pointed out that I was
pricing the option and all commodity prices at "MID". He suggested that I
remind you of that fact. I have not gotten from the traders, or made an
estimate of, the differential for bid/offer spread. I can incorporate that
information into further updates if you like. We can discuss this at our
next meeting.

Please be sure to inform Jean and Chris that the numbers you currently have
DO NOT include the above factor.

John did not have additional ideas on how to hedge this transaction given the
current agreement in place with Dow. He suggested, as we have discussed,
going to Dow to get their cost for a firm delivery schedule. While we have a
maximum that we would be willing to pay, they may offer something
less--largely based on their own understanding of their future brine
obligations.

Let me know when you need more information.

Thanks