---------------------- Forwarded by Chris Germany/HOU/ECT on 05/04/2000 07:11
AM ---------------------------

Angie Zeman@ENRON
05/03/2000 03:55 PM
To: Chris Germany/HOU/ECT@ECT, Scott Hendrickson/HOU/ECT@ECT
cc: Colleen Sullivan/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT, Victor
Lamadrid/HOU/ECT@ECT
Subject:

Scott & Chris-

This is mainly just an FYI so everyone has all the same information. Earlier
today I had lunch with Ken Capp and Mike from CNG Sabine and they brought up
the point that Enron is the only customer that is not using Sabine any
longer. Most of their customers are using a combination of Sabine (IHT
Contracts) and CNG Transmission (TTT Contracts) for their daily business.
Ken is concerned about losing Enron as a customer since in the past we did a
lot of business through them. Ken is now interested in doing some
negotiating. As of today, CNG Transmission will not be charging any fees
until October at the earliest- if ever- for the service they are providing,
but after October, the fee could be up to 84 cents per transaction, applied
to the seller only. Ken said that he would be willing to talk about lowering
his rates for Enron if that's what it would take to bring us back into their
customer list. Of course, this is an exception to what they do for their
other customers, so Ken is requesting that we keep this negotiation process
confidential in the best interests of both parties. If you have any other
questions about this conversation, please let me know.

Scott- Ken's number is 713-752-4018, in case you don't have it.

Just as a side note: Ken also mentioned that they are looking into providing
a hub service for Transco right now.

Thanks! -Angie