PG&E Market Center - The first "true blue" California Market Center deal has 
been completed.  200,000 MMBtu/day was borrowed from PG&E in the month of 
September and sold to USGT as a Ride and Park deal at $.10/MMBtu/day.  TW has 
completed payback to PG&E as of September 19th.

Market Services Roundtable - Our monthly roundtable discussion with TW Market 
Services was held this week.   We gave a brief presentation on the proposed 
Transport Options tariff filing and its impact to the TW system.

Sempra Energy Trading - We attended Sempra's weather derivatives briefing 
chaired by their chief meteorologist Dan Guertin.  Dan's forecast for the 
winter of '00-01 seems to track with the CPC's.  Dan also believes that this 
will be an "oceanographic neutral" winter with no El Nino or La Nina 
influences.  He sees slightly above average temperatures for the western 
marketplace and a relatively "normal" winter pattern (30 yr. avg.) for the 
mid-continent (i.e. cooler than last winter).

As far as monthly variations, he is predicting a cooler than usual November - 
December, and a slightly warmer than usual pattern for the remainder of the 
heating season.  He has promised to make his presentation information 
available to the briefing attendees.  If we can secure a copy, we'll pass it 
on.

El Paso Blanco Mis-Measurement - The settlement letter to net out the 
imbalances between TW, NNG, and El Paso was drafted and sent to El Paso this 
week for their signature.  El Paso has indicated they will respond next week 
as most of their management is scrambling with the recent reorganization 
announcement.

Burlington Resources Val Verde Plant - Facility Planning indicates it will 
take another 1000 hp compressor costing $1.8 - 2.0 million in order for TW to 
be able to meet our contractual requirements year-round with Burlington in 
San Juan.  With this uneconomical prospect, we will try and negotiate a 
yearly average receipt capability versus a daily receipt capability.  
Burlington reported in Gas Daily this week that their overall production will 
be down for the third quarter due to "processing and treating efficiency 
problems associated with summer heat in the San Juan Basin and continued 
mechanical downtime."

Koch - An initial meeting was held with Koch Midstream Services Company 
regarding the Coyanosa plant currently connected to Transwestern's most 
southern area of the West Texas lateral.  Koch does not have equity gas of 
their own at this plant but has offered to provide us the names of companies 
who do process gas at the plant.   Tailgate gas from the Coyanosa plant is 
currently sold at the Waha index.  Koch's Coyanosa plant is one plant which 
would potentially provide additional supplies (150 MMcf/d total plant 
capacity) to Transwestern as part of the Gomez to Puckett tie-in project.