Here is another incident stemming from the A-S 30 inch pipeline rupture of 
December 4, 2000.  Although the facts are still being developed, this 
customer was also being supplied off of the A-S line and when it went down, 
HPL had to activate another pipeline to serve this customer from a different 
source or direction.  This line may have had some liquids settled in the line 
or other sediments which became dislodged and ultimately may have caused a 
failure at Ameripol's boiler.  This resulted in a fire which they claim 
caused equipment and product damages.  Liquids are not identified in the 
quality specifications for the gas to be delivered to Ameripol, only not more 
than 20 grains of sulfur or 7 pounds of water vapor.
Additionally, the contract does contain a waiver of consequential damages.  
Gary indicated to me that they told him that about $130,000 of the loss was a 
result of lost sales due to the inability to produce product.  They have 
faxed us a written demand or notification which I will forward as soon as I 
receive it.
----- Forwarded by Dan J Hyvl/HOU/ECT on 12/21/2000 04:41 PM -----

	Gary W Lamphier
	12/21/2000 02:18 PM
		 
		 To: Dan J Hyvl/HOU/ECT@ECT, Gary A Hanks/HOU/ECT@ECT
		 cc: Greg Brazaitis/HOU/ECT@ECT, James McKay/HOU/ECT@ECT
		 Subject: Engineered Carbons/Ameripol Synpol

I was informed of a situation where Ameripol was receiving liquids in our 
gas.  They claim they suffered losses of $180,000 in equipment and product 
damage.  They are asking for reimbursement.  Please let me know what happened 
Gary and Dan what damages they could collect.
Thanks,

Gary