ET&S Hedged and Open Positions/Financial Exposure Positions

From: debbie.moseley@enron.com

To: bob.chandler@enron.com, paul.cherry@enron.com, john.dushinske@enron.com,dan.fancler@enron.com, jeffery.fawcett@enron.com, lee.ferrell@enron.com, drew.fossum@enron.com, steve.gilbert@enron.com, steven.harris@enron.com, rod.hayslett@enron.com, stanley

Subject: ET&S Hedged and Open Positions/Financial Exposure Positions

Cc:

Bcc:

Date: Mon, 30 Oct 2000 07:12:00 -0800 (PST)

Please Note:

We have excluded all Transportation Service Contracts from the calculation of
authorized limits. While some Transportation Service Contracts have price
risk, we currently do not have any that meet the definition of a derivative
per FAS 133.

If there are any questions regarding this change, please contact Dan Fancler.