To all,

For first and second quarter, the following margin and EBIT was recognized from the Pluto/MEGS project:

1. First Quarter		Margin: $3.027 MM	EBIT: $ 1.328 MM
2. Second Quarter	Margin:	$1.348 MM	EBIT: $   .707 MM

In addition, Duke Energy Field Services (Stephen Noe) has contacted Kevin Miller and is interested in acquiring this asset. DEFS has signed a C.A. and Kevin and Jesus Melendrez are preparing appropriate documents for their valuation.

Although these earning were initially recognized by Production Offshore, with its dissolution, the Pluto/MEGS EBIT currently resides in Upstream Products Executive.

Regards, 

Mrha 

 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	Wednesday, August 29, 2001 11:26 AM
To:	Killen, Faith
Cc:	Mrha, Jean; Josey, Scott
Subject:	MEGS

We have noticed that we are taking earnings on MEGs this year which is probably the wrong thing to do based on the fact that we know that future income is negative we should be using the income to write down the holding or against future income.

Can you reanalyse the bookings this year and ensure we do not book any earnings.

Thanks

Louise