Increased Take-away at SoCal Needles

Based upon our understanding of the request from TW Marketing, here is our suggested position on the posting and awarding of potential take-away capacity at SoCal Needles from approximately 1/1/02 to 5/31/02.

TW would post on its website a notice in the capacity section that, based on information provided by SoCal regarding an expansion on their system, the take-away capacity at SoCal Needless may be increased by __Dth/day for the period of approximately 1/1/02 to 5/31/02. Shippers would be advised that the actual start date would depend on SoCal completing their system modifications. The posting would say that TW would accept requests for such capacity during a stated period of time (a minimum of 3 business days). TW would award the capacity to the shipper(s) willing to provide the greatest cost commitment. The greatest cost commitment would be defined as those revenues above and beyond the current revenues which Transwestern already receives from reservation charges being paid prior to the bid period.

Call me and I'll arrange for us to meet to discuss this further. sjk