Dominion Transmission Gathering Charges

---------------------- Forwarded by Angie Zeman/Corp/Enron on 12/08/2000
08:47 AM ---------------------------
To: Angie Zeman/Corp/Enron@ENRON
cc:
Subject: Dominion Transmission Gathering Charges

FYI
---------------------- Forwarded by Katherine L Kelly/HOU/ECT on 12/08/2000
07:46 AM ---------------------------

From: Bryce Baxter 12/08/2000 08:15 AM

To: Katherine L Kelly/HOU/ECT@ECT
cc:
Subject: Dominion Transmission Gathering Charges

FYI
---------------------- Forwarded by Bryce Baxter/HOU/ECT on 12/08/2000 08:14
AM ---------------------------

From: John M Singer @ ENRON 12/08/2000 07:13 AM

To: Wade R Price/HOU/ECT@ECT, Gloria G Barkowsky/HOU/ECT@ECT, LaShonda
LaDay/Corp/Enron@Enron, Mary Theresa Franklin/HOU/ECT@ECT, Jeanne
Wukasch/Corp/Enron@ENRON
cc: Nelson Ferries/Corp/Enron@ENRON, Bryce Baxter/HOU/ECT@ECT, James T
Javins/DUB/EES@EES, Heidi Griffith/DUB/EES@EES
Subject: Dominion Transmission Gathering Charges

On Thursday, December 7,2000, IOGA WV and Dominion Transmission (formerly CNG
Transmission) announced that they have reached a five year agreement on
gathering rates. Although this agreement is subject to FERC's approval,
there should be no problem having FERC OK.

This agreement becomes effective January 1, 2001. Under the agreement,
Dominion WILL NOT invoice either the producer or his agent (i.e. ENA) for
gathering or processing. Instead, Dominion will increase the gas retention
percentages to cover the costs of both gathering and processing. They are:

1/1/2001 - 6/30/2003
7/1/2003 - 12/31-2005

Transmission Dry
0 0
Transmission Wet
3.91% 3.51%
Gathering Dry
9.34% 9.34%
Gathering Wet
13.25% 12.85%

As of yesterday, Dominion was not sure exactly how they will communicate the
production information to the producer and/or his agent. My guess is that
they will send a monthly statement which willl have two volumes for each
meter. The first volume will be the wellhead volume delivered to the meter
(a gross volume) . This volume will be adjusted by the retention percentage
which will equate to the sales volume (gross volume less gathering and/or
processing). The sales volume will be the volume we will pay the producer
for since it will be net of gathering and/or processing. There will be no
additional charges. ENA will not be required send monies to Dominion.

As additional information becomes available, I will forward.

John