Sun Devil Project

	Kern River - Williams announced a definitive agreement to sell it's Kern River pipeline system to Midwest gas and power utility MidAmerican Energy.  The sale includes the 900,000 MMBtu/d expansion project from Opal, WY to Southern California.  Last week, FERC gave Kern a positive preliminary determination on the non-environmental aspects of the expansion.  Now that the project's financing hurdles are apparently overcome, we expect FERC to approve the project shortly and construction will commence.  

	Assuming Kern delivers 700,000/d of 900,000 capacity into Southern California (200,000 would stay in Utah or Nevada markets), and the only other large California expansion is a 500,000 MMBtu/d lateral to serve Sempra's Baja California power plant, there may be an opportunity for TW to backhaul Opal gas to various Arizona markets.  If a Sun Devil lateral to Phoenix were constructed as a first phase, this could potentially reduce some of the effect of the negative price impact at the California border.    		

	Bowie Power Plant - contact was made with the plant's developers in Arizona this week.  After a positive ACC decision, they are moving quickly to get the necessary air permits.  RW Beck in Denver is the consultant for the plant's fuel requirements.  No determination has been made thus far on where (or how) the gas will reach the plant.

	Panda Energy - the confidentiality agreement was executed so Panda will begin sharing projected plant operating data with TW.

Gomez Lateral

Initial review of the line's property easements indicate no obstacles or restrictions in transferring the line to a new owner.  Maintenance records will be ready for review by March 15.  A brief offering memorandum is being circulated for review by other interested parties.
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