Gil,

In addition to the changes to the original document that I gave you, there is a couple other change(s) that should be made to the revised document that you and Jeff have been preparing:

The transportation rate refunds are covered under the Gas Supply Asset Agreement.  "Gas Purchase Agreement" in Section # 3 needs to say "Asset Agreement".
I think that any mention of "refund" should be replaced by "Reimbursable Refunds", a defined term under the Asset Agreement.  See Sections # 2, 3, and 4.
I may have misunderstood you last night, but didn't you say that the settlement payment has been separated from the Reimbursable Refund in this letter agreement.  If so, why does Section # 2 say "... are resolved including, without limitation, any issues relating to refunds ...".

FYI--I am meeting with Jeff to get his OK to add in the BUG and Lilco Transco imbalance volume numbers to the Transco settlement letter agreement.

Ruth
x31667