FYI - If this should happen, we should include it in the July Flash and also the Quarterly Functional Forecast (as a part of FA&A activity, right ???). 

 -----Original Message-----
From: 	Chandler, Bob  
Sent:	Friday, July 27, 2001 5:05 PM
To:	Zahn, Gary
Cc:	Jones, Dana; Kleb, Steve
Subject:	Deferred Gain on Sale of Part to Cooper Energy Services

Gary, I'm attaching an accounting memorandum I prepared at year end to establish the methodology for bringing the $4.5MM deferred gain on the Cooper parts sale into income.  The bottom line is that it is to be brought to income pro rata with the satisfaction of the $18MM minimum purchase obligation under the Blanket Purchase Agreement between  Co. 1195 and Cooper. So the amount to be transferred to income in July, 2001 will be $618,772.96 divided by $18,000,000 multiplied by $4,500,000 or $154,693.24.