Letter of Credit Format

fyi
---------------------- Forwarded by Mary Jo Johnson/HOU/ECT on 08/01/2000
09:50 AM ---------------------------

From: Russell Diamond
08/01/2000 09:48 AM

To: mlannou@hilcorp.com
cc: Mary Jo Johnson/HOU/ECT@ECT, Brad Schneider/Corp/Enron@Enron
Subject: Letter of Credit Format

Mike,

Please see the attached L/C format to cover physical delivery of natural gas
for one month.

As discussed, the L/C amount should be $1.6 million to expire Oct. 15, 2000.
In addition the L/C should be in the name of Hilcorp Energy Company. I also,
left you an additional voice mail, stating that once we have received a faxed
copy of the L/C from your bank, we will then be willing to flow gas.

Regards,
Russell