FYI.  Section 13(h) does state 3 months prior to expiration and 07/31/02 is 3 months before 10/31/02.

 -----Original Message-----
From: 	Y'barbo, Paul  
Sent:	Wednesday, December 19, 2001 6:43 PM
To:	'susan.jones@neg.pge.com'
Cc:	Lokay, Michelle
Subject:	ROFR Capacity


Susan,

Per our conversation today, Transwestern Pipeline and PG&E Trading can wait until after the upcoming holidays to discuss PG&E's right of first refusal on the 61,000 MMBtu per day that is currently posted. In fact, Section 13 (H) of Transwestern's FTS-1 rate schedule indicates that Transwestern could wait until July 31, 2002 to notify PG&E Trading as to the terms of the best offer. PG&E Trading would then have two weeks to notify Transwestern of its desire to match. I, however, suggest that we begin discussions of the outcome of the posting sometime in January.

I hope that your Holiday Season is everything you are hoping it will be. Merry Christmas and Happy New Year!

Best Regards,

Paul