Correction

Sorry, the pipeline in question is the Bammel 30-inch line, which goes from
the Katy-Satsuma line to Bammel.
---------------------- Forwarded by Tom Shelton/HOU/ECT on 11/20/2000 02:43
PM ---------------------------

Enron North America Corp.

From: Tom Shelton 11/20/2000 11:29 AM

To: Merlin Moseman/OTS/Enron@ENRON, Gerald Nemec/HOU/ECT@ECT, Nathan L
Hlavaty/HOU/ECT@ECT, Jack Simunek/HOU/ECT@ECT
cc: Steve HPL Schneider/HOU/ECT@ECT
Subject: Katy-Satsuma Form T-4

I have learned that although HPL Compression Company owns the "Katy-Satsuma"
line, for reasons related to the Looper Trust deal there must be a
non-affiliated thrid party operator. As part of the deal, operating
responsibility was contracted out to Hanover Compression Company, but since
they do not really have any pipeline operating people they then subcontracted
the operatorship out to a Reliant company, the exact name of which I do not
know.
Merlin Moseman said that during a recent Railroad Commission field audit
there was, not surprisingly, some confusion about who is the operator of this
line. The T-4 currently on file at the RRC shows HPL as the operator (under
HPL's P-5 number), and HPL Compression as the owner. From what I now know,
it sounds like the Reliant company should file a T-4 showing them as the
operator of the line, although I am not sure exactly what they are doing in
that role. Such a change may well foster questions, both among the parties
as well as with the RRC, about other matters, such as responsibility for
safety, signage, reporting, emergency procedures, etc.
I, in the role of facilitator/meddler, will set up a meeting for late next
week to discuss this matter, unless someone else wants to throw out the first
pitch.