I just thought I would send you guys the information I have on what is happening with the gas situation. The jump in prices was caused by the instability created when the Colonial Pipeline was shut down. Colonial pumps close to 100,000,000 gallons of product per day from Houston to New York fueling the storage tanks at the fuel depots. When the pipeline shut down it put everyone to using onsite storage reserves and created a panic. The line is now being repaired and we should see the market stabilize and correct itself once the panic subsides. We purchase our fuel to keep our trucks going straight from the central Alabama depot and they keep me updated on what is going on. Here is the latest update I recieved today and the news is pretty good.

COLONIAL RESTART SUCCESSFUL, CAPACITY SCHEDULED TO INCREASE

September 1, 2005

Colonial Pipeline has successfully completed restart of Main Lines 1 and 2 and safely resumed partial service around 6:00 p.m. Wednesday, August 31, 2005. Original estimates of 25% to 35% of normal operational capacity for initial return to service have been exceeded, and Colonial is now operating at about 40% capacity.


With the return to service of additional electrical power in Mississippi later today, Colonial anticipates that it will be able to operate at approximately 61% of normal capacity by the end of today (Thursday, 9/1/05.) Both gasoline and distillates are currently being transported and delivered.


"As always, our first concerns are for protection of people and our environment. With this in mind, we continue to work closely with the electric utilities as they re-establish service in Mississippi," stated David Lemmon, President and CEO of Colonial. "The devastation from Hurricane Katrina is tremendous, and I commend the men and women who are working diligently to restore the energy that we need and rely on."


With additional restoration of electrical service as well as connection of distributed generation equipment currently en route to Mississippi, Colonial anticipates that it will be able to achieve approximately 74% of normal operating capacity by Sunday, and 75% to 86% by early or mid-next week.


Colonial Pipeline, headquartered in Alpharetta, Ga., delivers a daily average of 100 million gallons of gasoline, home heating oil, aviation fuel and other refined petroleum products to communities and businesses throughout South and the Eastern United States. Colonial consists of more than 5,500 miles of pipeline, originating at Houston, Texas, and terminating at the New York harbor.

--------------------------------------------------------------------------------------------------------------------------------------

Here is a map of the Pipeline so you can see what I am talking about. Most people are not aware that this is where most of our fuels come from since they only see Tankers hauling it from Depots to Gas companies and from there company named trucks deliver to the station with the company name that sells product. Once the refinery and the power at the spur that runs to LA. is fixed capacity should be back to 100%.


Later

Tums