St. Mary's Production LLC VPP

Eric & John

ECT Merchant Investments Corp. has entered into a Volumetric Production
Payment agreement with St. Mary's Production LLC which provides for the
dedication of St. Mary's non-operated gas production from the Hunt Oil
Company operated Myette Point Northwest Field. ECT Merchant Investments
Corp. has arranged for the Enron North America Upstream Wellhead Desk to
manage the sale, nomination and transport of this production.

Could you please get us a quote to purchase this wellhead gas on a firm basis
based on the following:

a. 18 month term commencing 1/1/2001 and ending 6/30/2003

b. firm purchase and firm transport for 90% of the wellhead volume, starting
at 90% of 11,567 per day and declining as defined on the last tab labelled
"Volume" on the spreadsheet attached

c. gas daily purchase and interruptible transport for the remaining 10% of
the wellhead volume

Enron Upstream will keep the desk financially whole should volumes for the
90% firm component fail to show up on any given day of the 18 month term

Drafts of proposed Deal Tickets are attached.

George x3-6992