Overall, the results from Thursday's open season on our Sun Devil Project were very favorable (see below).  Contract terms ranged from two to sixteen years.

San Juan 	84% subscribed	at targeted transport rate
Phoenix		97% subscribed	at nearly targeted transport rate
Cal Border	77% subscribed	at 61% of targeted transport rate

We obviously have some work to do on the California piece but overall, the market interest supports our efforts to move forward with all due haste to the next level.  With that in mind, we'll begin working on the next steps below:

Next steps-
	 - Finalize Level A hydraulic study (9/7)
- Prepare Level B estimate  (9/30)
	- Schedule on-site ROW reviews (9/10)
- Schedule briefing session with FERC in September
- Issue press release on open season results (week of 9/3)
- Mobilize commercial teams to firm up contracts (week of 9/3)

For now, please regard this memo as highly confidential.  We appreciate everyone's support and hard effort thus far--  now the real fun begins!  Look for more info to follow soon and regularly scheduled project update meetings to begin in September.  

Please call me with any questions / concerns at 853-5559.
Best Regards,
Kevin Hyatt