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<br />Two pipelines, as well as electrical transmissions facilities, require relocation. Estimates are <br />expected from all three by February, 2004. It is anticipated that relocations will take place in spring <br />2004, with plans and specifications completed, and the Project bid, by early summer 2004. <br /> <br />Harris County has indicated that it will participate in this Project. We have begun preliminary <br />discussions with them on a formal agreement. Once estimates for all relocations, updated costs <br />for construction of roadway and drainage improvements, and utility installation are available, the <br />Agreement with Harris County can be finalized. It is anticipated that this will be completed in <br />Spring 2004. <br /> <br />If you have any questions, please advise. <br /> <br />. Page 2 <br />