Peoples

Here is what I'm looking at for July 1. Paul Leanza (Clinton) has a customer
that can take around 1,000 day. I don't know if that's dt or mcf. I will
use mcf for this email until someone corrects me. This customer has a
special deal where the pool operator gets a fuel credit on every mcf the
customer pulls. For July, assuming the gathering fuel is 5%, and this
customer pulls 95 mcf from your production pool, you will get a 5 mcf
credited back to your imbalance account the following month. I don't know
how this works with trading imbalances. But, at a NYMX of $3.95 that works
out to $.21 - sounds good to me. Paul said this customer is looking for a
CNG Index Flat price or and equivalent basis number. Marde will not sell at
that price but I will.

Marde said she would charge ENA a $.03 fee for all the volumes flowing.
Actually, I would prefer to move all the pool and production gas to EES,
settle up financially with EES and be done with it. What we could do to test
Paul's statement, is have the customer pull 300 mcf/day out of CES's pool for
July. It would be easy to see since that is the only deal. AND, have EES
take over the pool deal with Power Gas Marketing. Comments / Questions?

Questions
John
1. Heidi (EES) said you already have some Phillips production in EES's
pool. Does CES still have metered production from Phillips in CES's pool?
If yes, how many meters?

2. Please give me the following info for the activity behind Peoples
Phillips Power Gas Marketing
Term
Price
Volume

Heidi (EES)
If we find out from John that there is still metered production in CES's
pool, please call Peoples and see if we can move the metered production to
EES's pool for July. Heidi Boyd with CES said you could tell them that CES
is going out of business and they may make exceptions for that.

Marde
I would prefer to move both supply customers over to EES, where EES makes the
payments and bills either Clinton or Clinton's customer. At what price will
you take these deals? I assume we need to get this info from John before you
can anwser this.

---------------------- Forwarded by Chris Germany/HOU/ECT on 06/20/2000 02:51
PM ---------------------------

From: John M Singer @ ENRON 06/19/2000 01:52 PM

To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Peoples

As of today, Power Gas Marketing volume has decreased from 7,500 per month to
4,000 per month, until further notice, due to Peoples regulating the volume
of production into their system.

Phillips Production is also down..

For July, I would sell 4, 000 per month supplied by Power Gas Marketing (pool
to pool), and 300 MCFD x 1.03 = 309 Dth/day metered production from Phillips
Production. The Phillips Production meters are in CES's pool. It will cost
$100 per transaction to do a pool to pool transfer. If Paul Leanza can use
the gas through November, we should move the Phillips meters to his pool
(309/Day). The Power Gas volumes go through October.

John