Steve,

Attached is a term sheet showing price indications for the products that we talked about.  The market it down today so they may appear to be a little high.  I am still working on a structure term sheet for the pipeline capacity that we breifly discussed.  Please give me a call and we can update these prices for you or we can adjust the structures if these are not the products that fit your needs.

I would like to be prepared in the case that we are able to put physical or financial transactions together.  In order to do so, we would like to put both a physical purchase/sale agreement and perhaps an ISDA master swap agreement in place.  One thing we would need is someone to contact for financial or credit information so that we can insert the appropriate credit language in the contract drafts that we send to you.

Please let me know if you have any questions and I will be in touch with the transport structure.

Thanks,

Kim Ward
Manager, West Gas Origination
713-853-0685