Toledo Bend
Bi-State
Alliance

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Letter From SRA




January 21, 1999

Ms. Janna Lehman
Mr. Larry Kelly
Toledo Bend Bi-State Alliance
C/o Rt. 1 Box 1069
Hemphill, Texas 75948

Dear Ms. Lehman and Mr. Kelly:

I am in receipt of your letter of January 15, 1999 and assure each of you that we will be happy to work with the Bi-State Alliance in any way possible.

In reference to your presentation at the Authority's December 8 meeting, the Sabine River Authority of Texas Board of Directors has discussed with the Authority legal counsel the legal ramifications relative to the contract with the power companies. It was his advice that since the present Operating Guide is not deficient in any way (Brown & Root Study, 1998), the Authorities should operate the reservoir in such a manner as to stay in compliance with our contract (power releases between 172 msl and 162.2 msl during peaking period months, May through September). This is similar to the legal advice you indicated was given to the Board of Directors for Sabine River Authority, State of Louisiana. We will be happy to review this issue in April 2001. Until that time, there is no justification to call a special meeting to address this subject.

In response to your comments on the press release for the December 8, 1998 meeting not mentioning the attendance and presentation of the Bi-State Alliance, your attendance and presentation at the meeting was recorded in the offrcial minutes for the Annual Board of Directors Meeting. These minutes are available to all citizens once the Board has approved them.

Even though we cannot accommodate your request for a special meeting at this time, on behalf of all members of the Board I want to thank you for your comments and interest in the operation of Toledo Bend Reservoir.

Sincerely yours,

SABINE RIVER AUTHORITY OF TEXAS



Jerry T. Stallworth
President, Board of Directors

JTS/WJL:ss



Xc: Board of Directors
Jim Graves, Attorney


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