King Ranch Gas Plant- 12/2000 Election

Subject: King Ranch Gas Plant- 12/2000 Election

HPL has elected to be kept whole with respect to processing during the month
of December 2000 on its gas delivered from the Three Rivers Gathering
System. There should be no reduction for shrinkage and fuel at the plant for
December 2000.

HPL will be kept whole with respect to ethane recoveries from the Big Cowboy
gas being processed at the King Ranch Gas Plant during the month of December
2000. This election will reduce the shrinkage percentage from 20% of the
inlet MMBtu's to 15% of the inlet MMBtu's.

If you have any questions please give me a call.

Thanks!

Blanca