We have received an executed First Amendment to Master Agreement by and between Kerr-McGee Energy Services Corporation (f/k/a HS Energy Services, Inc.) ("Kerr-McGee") and Enron North America Corp. dated effective as of November 1, 2001, which amends a) the cross-default threshold for Kerr-McGee, b) the collateral threshold for Kerr-McGee, c) the delivery and return amounts, d) the material adverse change clause for Kerr-McGee, and e) provides for a new Credit Support Provider for Kerr Mc-Gee, as well as a new Guaranty from such Credit Support Provider (such Guaranty has also been received).

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Stephanie Panus