Re: Phillips Production Co - PNG City Gate Production

Wade, I have decided that everything currently in our system is incorrect.
Please set up a meeting with all the people shown above and we will discuss
how to correctly handle this in our system. We also have some other supply
behind the LDC that we might as well handle correctly.
Wade, while we are at it, do you want us to look at NYSEG, CPA, and East
Ohio??? Any others?

People I need in attendance
Mary Theresa or Jeanne
Steve Gillespie
Angie
Sylvia Campos (or someone from the contracts group)

This is what I'm thinking, everyone please think about this before we meet.
I think I will have Peoples set up as a pipeline and we will move all the
deals to this new pipeline.
Steve, get the Peoples password from Angie. I need you to go into escript
(Angie can help you with this) and run anything you can get out of this
system. These are actually CES passwords. It is my intention to use this
information to set up transport or pooling contracts in Sitara.

From: John M Singer @ ENRON 08/30/2000 06:46 AM

To: Victor Lamadrid/HOU/ECT@ECT
cc: Wade R Price/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT, Angie
Zeman/Corp/Enron@ENRON@ECT, Gloria G Barkowsky/HOU/ECT@ECT, Mary Theresa
Franklin/HOU/ECT@ECT, Melissa K Ratnala/HOU/ECT@ECT, Bryce
Baxter/HOU/ECT@ECT, Katherine L Kelly/HOU/ECT@ECT, Jeanne
Wukasch/Corp/Enron@ENRON@ECT
Subject: Re: Phillips Production Co - PNG City Gate Production

Phillips Production has/had two seperate PNG deals:
1. 500 MCFD; $2.82/MCF; 1/1/00 - 6/30/00
2. 300 MCFD; $2.95/MCF; 1/1/00 - 11/30/00
To my knowledge, PNG does not send out production information to either the
producer or the pool operator. This information should be available on
E-Script.
Phillips gets their production volumes (which they use to create our
invoice) from the company integrating the meter charts. I beleive that this
is the same information provide to PNG.
John

From: Victor Lamadrid @ ECT 08/29/2000 05:47 PM

To: Wade R Price/HOU/ECT@ECT
cc: Chris Germany/HOU/ECT@ECT, Angie Zeman/Corp/Enron@ENRON, Gloria G
Barkowsky/HOU/ECT@ECT, Mary Theresa Franklin/HOU/ECT@ECT, Melissa K
Ratnala/HOU/ECT@ECT, Bryce Baxter/HOU/ECT@ECT, John M
Singer/Corp/Enron@ENRON, Katherine L Kelly/HOU/ECT@ECT, Jeanne
Wukasch/Corp/Enron@ENRON

Subject: Re: Phillips Production Co - PNG City Gate Production

Wade, Thanks for bringing this issue to our attention. But I need help
understanding this one. We have a process already to handle John's behind
the citygate deals

Since, the actual scheduling is done by CES in Virginia, we never nominate
this gas nor do we see actuals. We hear about them from John and Terry and
we are supposed to get confirms from the producer and CES. Whenever one of
these deals occurs, we have buys from the producer and sales to CES to
account for these transactions internally.

It's my understanding that whenever John cuts one of these behind the
citygate deals; that Terry puts it into Sitara for him. The offset also
entered by Terry is a sale to CES (Now the New Power Company effective Sept.
1) with commercial (usually Chris Germany) confirming the sale price. Angie
schedules it in Unify under CNG and we create, track and balance like usual.

Is that not the case here? Is this something that's getting reconciled in
Jeanne and Terry's project for CNG???

By cc: Angie, please get with Terry /Jeanne and Chris to help Wade. THANKS!
Please keep me abreast of the status.

Wade R Price
08/29/2000 02:53 PM
To: Victor Lamadrid/HOU/ECT@ECT
cc: Chris Germany/HOU/ECT@ECT, Angie Zeman/Corp/Enron@ENRON, Gloria G
Barkowsky/HOU/ECT@ECT, Mary Theresa Franklin/HOU/ECT@ECT, Melissa K
Ratnala/HOU/ECT@ECT, Bryce Baxter/HOU/ECT@ECT, John M Singer/Corp/Enron@ENRON
Subject: Phillips Production Co - PNG City Gate Production

ENA is being invoiced by Phillips Production Company for production on
Dominion Transmission (CNG) via Peoples Natural Gas. This is
behind-city-gate gas that we do not get documents supporting the volumes. I
have invoices and production statements from Phillips.

Per John Singer Notes Mail of 08/23 concerning the July production," Phillips
Production / Peoples: Price: @ $2.95/Mcf Term: 1/1/2000 - 11/30/2000 Est.
Volume: 500/MCFD (Actual Volume will vary.) I have no way of verifying
the actual volume. Chris Germany and Angie Zeman will try to get into CES's
PNG pool via E-Script. This may be the only way to verify actual volumes. I
have a call into Phillips to see if they might have a pipeline statement
verifying volumes." Joihn's call to Phillips read partially, " I just
talked to Sam Fragale @ Phillips. The 7,843 Mcf @ $2.95 is ENA's. "

Our deals have been using point 20200 on Dominion Transmission (CNG). Deals
for Jan 00 - Mar 00 were 210359 and 210364. These were copied to 226543 and
229733 respectively for April 00 forward Deal 226543 has April 00 only, but
should probably be extended through June-00 according to deal notes from John.
Here is our current status on this gas

Prod Invoice Invoice Current
Month Volume Price Unify Vol Sitara Deal

May-00 4801 @$2.82 163 226543 (has April-00 only, should extend through
June?))
9748 @$2.95 353 229733

June-00 5341 @$2.82 0 226543 (has April-00 only, should extend through
June?))
9394 @$2.95 0 229733

July-00 7843 @$2.95 9552 229733

We need to get our proccess together for handling this each month through the
end of the deal terms.

Please direct the appropriate parties to help make these invoiced volumes
available on the deal and in Unify so I can pay Phillips.

Thanks WRP