Texaco has short paid us by 1.5 million for Socal cuts.  I believe that they claimed a penalty on the net out for the amount.  We do not agree with this short pay and stand by the description of the Socal product in which it states that there will be cuts due to operational constraints on the upstream pipelines.  I would like to return the short pay favor to Texaco.  Please let me know how we should proceed.

Mike Grigsby