Re: Peoples

OK. Different now. Is it ok if I send Lexi her own thank you card? I going
to try and print a picture of the cows to send with it.

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

Thanks! How are you doing? m

Chris Germany@ECT
08/21/2000 09:27 AM
To: Marde L Driscoll/HOU/EES@EES
cc:
Subject: Re: Peoples

We sold directly to Clinton for the term of our deals. Clinton (Latrove)
should have pulled directly from Power Gas Marketing's pool. The Power Gas
Marketing supply deal ends Oct 31st and the local production deal ends Nov
30th and then we will be out of the local production business. We've tried
to tell everyone but I bet you still get phonecalls until we are out of it.
Sorry.

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

Did we end up doing this deal or did you sell directly to Clinton? I'm
thinking that you sold directly to Clinton.... Let me know. Thanks! md
---------------------- Forwarded by Marde L Driscoll/HOU/EES on 08/16/2000
03:45 PM ---------------------------

Chris Germany@ECT
06/22/2000 07:40 AM
To: Marde L Driscoll/HOU/EES@EES
cc: Alain Diza/HOU/EES@EES, Heidi Griffith/DUB/EES@EES, Dick
Jenkins/HOU/ECT@ECT, Nelson Ferries/Corp/Enron@ENRON@ECT, Mary Theresa
Franklin/HOU/ECT@ECT, John M Singer/Corp/Enron@ENRON
Subject: Re: Peoples

Paul is out of the office today but I found the customer name in my notes -
it was right below all my notes on CanFibre. The customer is Latrove Steel.
I'm going to call Peoples myself to learn how this works. Does anyone object
to that? I will wait until this afternoon before I call.

Heidi
Do you think the production gas can be moved to EES's pool by July 1st? If
not, we can sell the gas to Latrove out of CES's pool for July. However, we
will not see the fuel credit until August(???) to verify if this works or not.

Marde L Driscoll@EES
06/21/2000 08:29 PM
To: John M Singer/Corp/Enron@ENRON@ECT, Chris Germany/HOU/ECT@ECT
cc: Alain Diza/HOU/EES@EES, Heidi Griffith/DUB/EES@EES, Dick
Jenkins/HOU/ECT@ECT, Nelson Ferries/Corp/Enron@ENRON@ECT, Mary Theresa
Franklin/HOU/ECT@ECT
Subject: Re: Peoples

Questions that I have:
1) I am assuming that the Clinton end-user will not go into EESs' pool. It
needs to be verified with PNG that I can do a pool to pool nomination to the
end-user (only a few stand alone customers are grandfathered to receive these
types of noms.) This is a critical issue for EES as we are already long gas
behind the gate and we don't need more production. If the customer can't
take my gas from my pool then I will have to bring it in via CNG which will
only make my pool longer.

2) If the production meters are moved to EESs' pool then I would suggest
just a flat index price between ENA and EES.

3) Will EES be supplying the full 1000/d to the end-user or just the amount
of the local production transferred to EESs' pool?

4) If the fuel credit works the way Chris explains it below then I would be
willing to sell all of the gas at index but I will need to confirm that with
PNG.

To: Chris Germany/HOU/ECT@ECT
cc: Marde L Driscoll/HOU/EES@EES@ECT, Alain Diza/HOU/EES@EES@ECT, Heidi
Griffith/DUB/EES@EES@ECT, Dick Jenkins/HOU/ECT@ECT, Nelson
Ferries/Corp/Enron@ENRON, Mary Theresa Franklin/HOU/ECT@ECT
Subject: Re: Peoples

1. ENA is responsible for purchases of 500 MCFD (515 DthD) Metered Prouction
from Phillips Production Company. This volume is will be decreased until
further notice because PNG has increased line pressures thus reducing the
production volumes to 50-60% of normal (Refer to attached schedule). There
are 7 Phillips meters in CES's pool beginning July 2000. Heidi Boyd @ CES
will have to nominate the production into CES's pool and away from the pool
until the meters are moved. EES should have 6 Phillips Production meters in
their pool beginning July 2000.

2. See Attached Schedule for Term, Price & Volume.

Note: PNG has increased line pressures which reduces production into the
system. Both Phillips Production and Power Gas Marketing are claiming Force
Majeure. Their volumes have been reduced to 50-60% of the original contractd
volume.

Chris Germany@ECT
06/20/2000 03:59 PM
To: John M Singer/Corp/Enron@ENRON, Marde L Driscoll/HOU/EES@EES, Alain
Diza/HOU/EES@EES, Heidi Griffith/DUB/EES@EES
cc: Dick Jenkins/HOU/ECT@ECT

Subject: 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