Please proceed with number one.  They withheld the money related to operational cuts in the west.  Please contact Accounting for Texaco's exact description of the penalty and I will have Patti Sullivan contact you with the details from our perspective.

Mike

 -----Original Message-----
From: 	Hodge, Jeffrey T.  
Sent:	Tuesday, October 23, 2001 9:04 AM
To:	Grigsby, Mike
Subject:	RE: Texaco

Mike:

	It seems to me that we can proceed one of 2 ways.  Those alternatives are as follows:

		1.  We could write a letter to Texaco and demand payment for the withheld amount.

		2.  If we are paying them this month, we could withhold the $1.5 million from the
		    amount we are paying them.  Of course, we would need to provide them some 
		    sort of explanation.

	My preference at this time would be to do the first item.  If you could have someone provide me with the details of the transaction they withheld the money on I could draft the letter.  If that letter brought no response, then we could consider taking the action outlined in the second item.

	I trust all is well with you.  I look forward to hearing from you.

Thanks,

Jeff

 -----Original Message-----
From: 	Grigsby, Mike  
Sent:	Monday, October 22, 2001 5:00 PM
To:	Hodge, Jeffrey T.
Subject:	Texaco

Jeff,

How should proceed with Texaco and their 1.5 million withholding?


Thanks,
Mike