USGT
Sold 20,000 MMBtu/d of Daily Firm space moving gas for the weekend from PG&E 
Topock to SoCal Needles at $.10/MMBtu.  This was somewhat of a novel deal in 
that the California price spreads opened up and gas became trapped at PG&E.  
Once our station 4 compressor becomes fully operational, this opportunity 
will likely dry up.  

Enron N.A.
Representatives contacted us this week to discuss our possible participation 
in a gas storage field using a depleted reservoir on Navajo land near 
Farmington, NM.  Third party developers approached ENA looking for assistance 
in moving the project forward.

New Tariff Services
Marketing consensus was reached to delay any further development of 
Transwestern's Hourly Firm Service until the potential markets of power plant 
loads become operational.  During this interim period, Park 'n Ride services 
provided on an intra-day basis shall be priced incrementally higher than Park 
'n Ride services provided on a timely basis.  Any resulting market response 
will provide indications of market willingness to pay premium transport rates 
for hourly transportation service.

El Paso 
El Paso Merchant Services needs to re-scrub their verbal offer to 
Transwestern of a $15 Million lump sum "pre-payment" option of fuel 
monetization for their combined 65,000 MMBtu/d of San Juan to California 
capacity.  El Paso did not take into consideration the different termination 
dates of the two contracts (25,000 MMBtu/d PG&E permanent release contract, 
and 40,000 MMBtu/d Gallup expansion contract) in their analysis.  A revised 
proposed lump sum payment offer is expected mid-next week.

El Paso Field Services
Met with EP representatives to discuss a possible interconnect near WT-1.  
The I/C would be sized for 40,000 MMBtu/d.  EP proposes to pay for and set 
compression to flow this gas into our high pressure line and has agreed to a 
volume commitment of 20,000 MMBtu/d for up to 2 years.  An added advantage is 
most of the volume would come from the constrained Atoka area which would 
allow Agave to increase deliveries to TW.

Caithness Corp.
Caithness has decided to move forward on their 1000 Mw generation project in 
Northwest Arizona.  The 2-phase project would initially consume 80,000 
MMBtu/d of gas.  The proposed location is 40 miles south of TW's line near 
Wickieup, AZ.  We are meeting with Caithness reps next week.  Projected 
in-service date for the plant is early 2002.

WT-2 Cooler Expansion
Level B cost estimates are being prepared.  Revenue / cost savings 
assumptions predict $500,000 annual revenue to support the expenditure.  Once 
installed, the project would give TW an additional 50,000 MMBtu/d capacity on 
the east end.  Financial evaluations will be done once the cost estimate is 
received.