Clay,

We expect to get Eco's OK, on Thursday, to give Cabot notice that Eco has the opportunity to purchase "replacement fuel" rather than purchasing the Cabot contract 2002 Winter Cargo. Current Henry Hub prices indicate that diversion of the last 2001 Hoegh Galleon cargo to Puerto Rico makes economic sense. We are studying the logistical issues.

A second Hoegh Galleon size cargo will be needed, most likely in February. When can Dan and I visit with you to discuss the prospects for arranging this February cargo? We'd like to know about product availability, how long can we wait to set the load dates, and will the previous pricing formula used by OLNG apply to Puerto Rico?

Cabot has 10 days to respond to the notice. Eco can buy spot LNG, regardless of Cabot's response. Cabot's response primarily determines whether or not Eco must pay $4.7MM in demand charge and demand surcharge.

Best Regards,

Paul