During the quarterly conference call with SoCal in which we discuss PCB costs 
on the SoCal system, for which Transwesten is 86% responsible, Ralph Komai, 
SoCal's PCB person provded some addtional information with respect to what is 
going on with the PCB activities on the SoCal system.  As a result of the 
PG&E press release, SoCal management directed additional sampling to be done 
at their interconnect with Transwestern and downstream of this interconnect.  
Ralph reported that a number of liquid samples came back at around 7 ppm, 
however one sample at their Kelso Station, near Barstow,  came back at 77 
ppm. 

Ralph had indicated that there has been an increase in the PCB's coming into 
their collection locations in the Needles area as evidenced by the following:

 Based upon 1997 data, almost no liquids greater than 50 ppm were revcovered

 Data collected in 1998 showed that approx. 8% of the liquids were greater 
than 50 ppm

 Data collected in 1999 showed that approx. 9% of the liquids were greater 
than 50 ppm

Based upon this, Ralph had stated that SoCal would be collecting additional 
sampling information and possibly entering into an internal montoring 
program, somewhat like PG&E is currently doing now.

I had informed Ralph that our Needles M/S facility had seen almost no liquids 
in the last 5 years, other than a recent accumulation of a one time pigging 
in early 2000 when a small volume of liquids (less than 55 gallons) had been 
collected.   We discussed that the accumulations seen on the SoCal system 
were probably from existing liquids on their system which had collected in 
low points in their pipeline and were moving downstream due to the increased 
flows from TW into SoCal.  

Ralph gave the impression that there were no immediate management tensions 
resulting from the recent "hits".  He just indicated that they would be 
watching their system and sampling at a more frequent basis.