Following up on my "To Do" from our conference call, the information below 
may be useful as we attempt to justify capital / operational expenditures on 
the TW system:

Objective:  Try and quantify in revenue terms the lost value of decreased 
west throughput to TW

First a few assumptions:
Fuel prices used were: Permian = $4.785/MMBtu and San Juan = $4.14/MMBtu
Baseload volume flowing west was assumed to be 1,090,000 MMBtu/d
Fuel consumed = 2%
Revenue impact is based upon current contracts and assumes lost fuel and 
commodity charges only.  TW continues to collect the reservation charges.

Result:
Based on current gas fuel prices, for every 1000 MMBtu/d delivery we lose on 
the west end, this translates to approximately $150/day of lost revenue.  If 
we assume the pressure drop at station 1 is preventing us from delivering 
25,000 MMBtu/d into SoCal, then the lost revenue for TW would be $3,305 per 
day or $1,206,000 per year.  To give you an idea of the significance of the 
fuel value, of the $3,305 daily revenue, approximately $3,072 of it is fuel 
related.

One More Thing:
We assume here that TW continues to collect the reservation charges.  
However, on a long term basis, if the west condition continues, we run the 
risk of losing the reservation as well.  Based on 25,000 MMBtu/d, this value 
equals $2,500,000 per year.

Let me know if you have questions.  I can be reached at 713-853-5559

KH