Fuel Hedging - We hedged another 5,000 MMBtu/d of fuel for 2001 at $3.63.  
This brings our fuel hedge thus far to 15,000 MMBtu/d at an average price of 
$3.53 (basis adjusted).  We are evaluating doing another 5000/d and/or 
selling out-of the-money calls and collecting the premiums.

Interactive Open Season - TW has posted an announcement for an Interactive 
Open Season to be held August 10, 2000 for 14,000 MMBtu/d of East of Thoreau 
to PG&E/Topock capacity for the term of April 1, 2001 - October 31, 2001.  
With Topock values currently depressed relative to Needles, we'll attempt to 
add some value to the IOS by giving shippers alternative delivery capability 
at Needles and the new power plant at Citizens/Griffith.

Southwest Gas - has finally begun construction on the new interconnect 
between SWG and TW!!!  Per our Interconnect & Operating Agreement we must pay 
the remaining half of the CIAC, which is estimated to be $442,500, "...no 
later than 10 days following the date on which SWG notifies TW that the new 
interconnect will be in-service within 3 months."  SWG has not met this 
criteria yet.

Burlington - Burlington has requested TW respond to an apparent discrepancy 
in the physical volumes we can (or cannot) take from them at the Val Verde 
Plant versus the currently effective operating agreement.  The problem is 
current high temperatures in the San Juan region have limited our take-away 
capabilities and the summer / winter seasonality was not taken into account 
when we drafted the last amendment in January of this year.  We will meet 
with Legal, Facility Planning and Gas Control to craft a response for Richard 
Riehm.

Amoco - We have scheduled a conference call with Legal and Commercial Reps 
from Amoco for next Tuesday afternoon to discuss the Transport Options 
Program.

Red Cedar - Negotiations continue on the FT deal.  Red Cedar has requested an 
option to call on 35,000 MMBtu of capacity in year 2 of the 5 year 
agreement.   Working with Enron Risk Management, we determined the value of 
this option to be approximately $200,000 which may be rolled into the 
contract.

El Paso Field Services - In our efforts to move ahead on the new 
interconnect, we have responded to EPFS that TW would commit $100,000 towards 
the new interconnect as well as require a volume commitment from EPFS of 
20,000 MMBtu/d for up to 2 years.  EPFS is taking TW's offer to management 
for review.

El Paso Natural Gas - The letter to EP for Stan Horton's signature relative 
to our Blanco measurement dispute is going through its final iterations and 
should be ready to send by Friday 8/4.