Re: Interconnect Agreement - Ferguson Pipeline

Jim,

Thanks for your assistance. As we discussed, all we need is our engineering
department to sign off on LCRA's measurement specs which are attached below
in Exhibit "B". I spoke withTom Fry today and he suggested that Sam Shaw at
Hanover is the one to review the specs and make sure they match ours. Please
contact me as soon as possible once we have confirmation on the specs. LCRA
is eager to sign as they are quickly approaching their commencement of
construction date. The documents are ready for execution as soon as we get a
"go-ahead" on the measurement specs. Thanks Again.

Eric Gillaspie
713-345-7667
Enron Building 3886
----- Forwarded by Eric Gillaspie/HOU/ECT on 06/13/2000 11:07 AM -----

Eric Gillaspie
05/25/2000 04:49 PM

To: dan.kruger@lcra.org
cc: Steve HPL Schneider/HOU/ECT@ECT, James R Haden/HOU/ECT@ECT, Gerald
Nemec/HOU/ECT@ECT
Subject: Re: Interconnect Agreement - Ferguson Pipeline

Mr. Kruger,

Again, it was a pleasure speaking with you today. Please find the attached
red-line versions of the LCRA -HPL Interconnect Agreement & Exhibit B with
the changes as discussed. As soon as I get confirmation from our Engineering
Department that your measurement specifications are acceptable, I will
forward execution copies to your attention.

Thanks,

Eric Gillaspie
713-345-7667
Enron Building 3886

---------------------- Forwarded by Steve HPL Schneider/HOU/ECT on 05/22/2000
11:35 AM ---------------------------
To: <Eric.Gillaspie@enron.com<
cc: <James.R.Haden@enron.com<, <Steve.HPL.Schneider@enron.com<
Subject: Interconnect Agreement - Ferguson Pipeline

I like the Interconnect Agreement that you sent. I have just a few
modifications. I also included a mesurement and quality Exhibit B which I
think we should incorporate. You may have some suggested changes in regard
to Exhibit B.

On another matter, I need a good faith cost estimate from Enron for
constructing the Tap Facilities. I need this in order to issue a purchase
order.

Please review and get back with me, Thanks!

- Enron-LCRA InterAgree 1.2.doc
- ExhibitB-interconnect.doc