Mark,

Zhiyong and I met with Geoff this evening, to run over the budget numbers.

Geoff was prepared to give the OK to the following items

CGS Physical			$ 2,065,308
Sitara/CPR/TDS Maint		$ 1,310,853
TAGG/ERMS Maint		$ 1,273,775
CGS Financial			$ 1,451,316
Gas Performance Upgrades	$   800,000
TOTAL				$  6,901252

Of the the other items in that section, the IT Commerical Co-ordination piece needs to be handled by Tommy Yanowski, the Global Valuation Mtce piece shouldn't be there and has now been corrected in the underlying sheets, and the Gas Fundamentals piece needs to move to Chris Gaskill's pot.

Zhiyong and I will meet with Chris Gaskill first thing in the morning to get sign off on the numbers for Gas Fundamentals. We don't anticipate a problem with this as Geoff Storey has already given him a heads-up on the costs. We have also cut around $700k off the Gas Fundamentals costs which didn't make it to the final printout today in the meeting.

regards

Steve