MY FIRST NOTICE FROM KISD:

I was elected to the KISD School Board in May of 1991.  I received this "memorandum" in my Board Packet in July 1991.

                                 Katy Independent School District

                                          Memorandum

To:  Dr. Hugh Hayes

From:  Ken Leach

Subject:  Natural Gas Storage Facility

Date:  July 2, 1991

=========================================================================

Please review the attached letter.  There appear to be some implications here that may need to be addressed by Waller County Appraisal District.  We will monitor (and provide any information on) any proposals to lease any of our interests.

KL/ar

Attachment

c:  Bill Moore

     Mike Griffin

                            Western Gas Resources Storage, INC.

                                3131 West Alabama, Suite 530

                                     Houston, Texas 7709

                                          (713)526-0140

                                        FAX:  (713) 526-2363

June 19, 1991

RE:  Application to Operate the

        Fulshear (Hillebrener Sand)

        Field as an Underground

        Natural Gas Storage Facility

Dear Owner:

You will receive (or have already received) notice from the Texas Railroad Commission about the referenced application.  This letter will provide more information about the proposed facility.  It is being sent to all surface and mineral owners even though most owners know about the project as we have acquired leases covering most of the mineral and surface interests. Your first contact regarding this project was probably with Alcorn-Texas Properties and its partners.  Last Fall, Western joined as a partner, and since then has taken over operations and has executed a contract to purchase the Alcorn interests in the partnership.  After closing with Alcorn, all leases acquired by Alcorn-Texas or Alcorn-Western will be assigned to Western Gas Resources Storage, Inc. ("Western").

The Texas Legislature has endorsed natural gas storage facilities as being beneficial to the state.  The demand for natural gas fluctuates greatly due to weather, industry conditions and other unpredictable factors.  Underground storage facilities, such as the one proposed for Fulshear Field, inject and store gas during periods of lower demand and withdraw it when demand increases, thereby providing more reliable supplies for both residential and industrial users.

As a substantially depleted gas field, the Fulshear Feild is a good candidate for gas storage because of its reservoir quality, location and size.  The reservoir sand (Hillebrenner sand of the Yegua formation) is approximately 7000 feet deep and has produced the Fulshear Field since 1952.

The total reservoir area covers just over 2000 acres, although the portion of the reservoir where most gas will be stored is only a fraction of that area.  Surface operations for injection and withdrawal will be conducted at one central location on our tract of land near the intersection of Green Busch Road and Roesner Road.  All wells are planned to be drilled from the site and our field office and injection/withdrawal equipment will be there.  Our site allows for a substantial buffer between our facilities and adjoining properties.  Our development plans include landscaping and fencing to reduce any visual or other impact on adjacent owners.

This project is subject to strict regulation and requirements addressing, among other matters, protection and safety of the local population and the environment.  Western will, of course, fully comply with all applicable standards and regulations.

At the hearing before the Railroad Commission, Western will present its proposal, including substantial technical evidence such as well histories (with logs, native pressures, initial production, production volumes and pressure declines, and drilling and plugging details), reservoir calculations and Western's proposed operations.

Please note that the storage zone is approximately 7000 feet deep, and the injected gas will never exceed the initial pressure of the native gas prior to production.  Also, all surface and subsurface equipment and operations will meet or exceed applicable standards, and the safety and integrity of wells previously plugged, but penetrating the storage zone, will be studied and, when appropriate, wells will be monitored and/or replugged.

In summary, we believe that by providing a reliable gas supply for residential, commercial and industrial users in the Greater Houston area and in other areas, the benefits of the proposed facility are substantial.

We expect to be contacting unleased interest owners in the near future.  Whether your interest is leased or unleased, however, if you have any questions about this project, or about Western, please call us at the number on this letter,

Sincerely,

WESTERN GAS RESOURCES STORAGE, INC.