HPL Meter #985579

Gary:

HPL received volumes at the above meter during 1/1/99 thru 6/99. Prior to
1/1/99, ENA was purchasing some of the volumes from I P Petroleum under
contract #016-44386-102; Deal #341832. This deal expired 12/31/99, but the
volumes continued to flow and be allocated to I P Petroleum by Pioneer.
Since there was no deal to cover these volumes, these volumes were allocated
to HPL Strangers Gas Contract.

Volume Mgmt had previously requested a deal to cover these volumes from
someone, but never received one.

Here are the months and volumes that need resolution:

Prod. Mth Mmbtus
Jan. 99 6,510
Feb. 99 6,395
Mar. 99 14,789
Apr. 99 16,866
May. 99 8,415
Jun. 99 13,858

Total 66,833

Possible Solution:

1. Need a Deal to cover the periods in question, or
2. Provide authorization to writeoff the volumes. (Print & return original
to Clem Cernosek)

APPROVAL to Writeoff the volumes to Unaccounted for Gas Loss

PS: My understanding is that neither I P Petroleum nor Pioneer have
addressed any issues concerning these volumes.