Teco's Indian Spring Plant

---------------------- Forwarded by Mary Poorman/NA/Enron on 11/08/2000 04:20
PM ---------------------------

Clem Cernosek@ECT
11/03/2000 02:28 PM
To: Sherlyn Schumack/HOU/ECT@ECT, Lauri A Allen/HOU/ECT@ECT, Jack
Simunek/HOU/ECT@ECT, Karry Kendall/HOU/ECT@ECT, Mary Poorman/NA/Enron@Enron,
Howard B Camp/HOU/ECT@ECT, Katherine Herrera/Corp/Enron@ENRON, Megan
Parker/Corp/Enron@ENRON, Jennifer D Pattison/HOU/ECT@ECT
cc: Rita Wynne/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON

Subject: Teco's Indian Spring Plant

A meeting was held on November 1, 2000 at 3 pm in EB3270 to resolve Exxon's
residue volume issue at Teco's Indian Spring Plant. Exxon's issue is that
the residue volumes that HPL is recording for Exxon's account for
transportation do not equal to the wellhead volumes produced and delivered to
PGE.

Items that were identified so that Exxon's Issue could be resolved:

1. HPL is responsible for any UA4 loss/gain and fuel consumed on PGE's line
attributable to Exxon's Big Sandy production.
2. If Exxon's production exceeds 500 mcf/d, HPL must on a monthly basis
elect to process or not process the Exxon Big Sandy Gas. If HPL elects
to process, then Teco buys the products from HPL.
3. If Exxon's production flows between 100 Mcf/d and 499 Mcf/d, then Teco
can process and makeup the shrinkage to HPL with their own gas volumes.
4. If Exxon's production is less than 100 Mcf/d, then HPL must terminate
the Processing Agreement. If HPL does not terminate and volume continue
to flow at less that 100 Mcf/d than HPL loses the shrinkage and must
pay to Teco an additional $500 per month.

Solution:
1. HPL will schedule and record the Gain/Loss Volumes at HPL Meter #986884
that is attributable to UA4 and Fuel on the PGE line.
2. HPL will schedule and record the sale volumes of PVR to Teco at HPL
Meter #986884.
3. The scheduling of the volumes for items 1 and 2 will allow for offset
volumes to be record as adjustments to Exxon's transport volumes.
4. The HPL Logistics dept. (Mary Poorman) will inform Assets Group (Jack
Simunek) when and if the volumes nominated for Exxon fall below 100 Mcf/d.

If any of the above does not reflect what was discussed or agreed to, please
let me know at X-36650.

Thanks, Clem