Export of Gas From Alberta

For your information.
---------------------- Forwarded by Jeffrey T Hodge/HOU/ECT on 05/27/99 01:28
PM ---------------------------

Enron Capital & Trade Resources
Canada Corp.

From: Robert Hemstock 05/14/99 06:22 PM

To: Rob Milnthorp/CAL/ECT@ECT, Geoff Storey/HOU/ECT@ECT, Keith
Holst/HOU/ECT@ECT
cc: Peter Keohane/CAL/ECT@ECT, Morris Richard Clark/HOU/ECT@ECT, Juanita
Marchand/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT
Subject: Export of Gas From Alberta

If ECTR is buying gas in Alberta you should be aware that that the Alberta
Energy Utilities Board has permitting and reporting requirements for gas
produced in and exported from Alberta.

The AEUB is quite flexible on who has to hold the permit and report the
exports. Either the buyer or seller can hold the permit and do the
reporting. At the present time ECTR does not hold an AEUB Blanket Export
Permit (ECT Canada does but obviously ECTR volumes cannot be reported under
the ECT Canada permit). Therefore if ECTR is buying Alberta gas then it
needs to do one of two things: (a) agree with its counterparty that it will
report the exports under its AEUB permit, or (b) instruct me to get a blanket
permit in the name of ECTR (and then have Juanita Marchand in Houston do the
reporting for ECTR under this permit).

Please let me know if this is an issue that requires my attention.
---------------------- Forwarded by Robert Hemstock/CAL/ECT on 05/14/99 04:58
PM ---------------------------

Enron Capital & Trade Resources
Canada Corp.

From: Robert Hemstock 04/08/99 07:30 PM

To: Geoff Storey/HOU/ECT@ECT, Keith Holst/HOU/ECT@ECT
cc: Juanita Marchand/HOU/ECT@ECT
Subject: Import of Canadian Gas into the U.S.

I was recently contacted by Juanita Marchand who does all the reporting of
Canadian exports under ECTR's NEB Export Licences and U.S. DoE Import
Authorizations out of Houston. You guys need to advise Juanita of all of
the points at which you are importing Canadian gas into the U.S. so she can
ensure ECTR's total export/import volumes are correct. She will call you to
get this info from you.

Also, Juanita is reporting all the volumes you export/import under ECTR's NEB
Short Term Blanket Permit GO-75-98 and its U.S. DoE Blanket Authorization
1323. If you enter into any term deals that are longer than two years you
should advise me of this so we can consider whether the deal should be
supported by its own NEB and U.S. DoE permit.

Thanks.

Rob