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From:gerald.nemec@enron.com
To:eric.gillaspie@enron.com
Subject:Rio Nogales Operation costs cap
Cc:
Bcc:
Date:Wed, 14 Feb 2001 09:22:00 -0800 (PST)

----- Forwarded by Gerald Nemec/HOU/ECT on 02/14/2001 05:18 PM -----

Eric Gillaspie
02/14/2001 03:30 PM

To: Gerald Nemec/HOU/ECT@ECT
cc: Greg Brazaitis/HOU/ECT@ECT
Subject: Rio Nogales Operation costs cap

Gerald,

Greg and SCS recommended we put a cap in for our expenditures on operation
costs that HPL was willing to eat for the HPL Operated Facilities. I have
modified section 5 accordingly for your review:

5. Operation. RNP shall operate and maintain the RNP Facilities in
accordance with sound and prudent natural gas industry practice and shall be
fully responsible for the routine operation and maintenance thereof and for
all cost and expense associated therewith. HPL shall operate and maintain or
cause the operation and maintenance of the HPL Facilities in accordance with
the Standards and with sound and prudent natural gas pipeline industry
practice and shall be fully responsible for the operation and maintenance
thereof and for all cost, expense and risk associated therewith. HPL shall
operate and maintain or cause the operation and maintenance of the HPL
Operated Facilities in accordance with the Standards and with sound and
prudent natural gas pipeline industry practice and shall be fully responsible
for the routine operation and maintenance thereof and for all cost, expense
and risk associated therewith, except RNP shall be fully responsible for any
cost and expense associated with any repairs, maintenance, and capital
expenditures that are in excess of $3,000.00 for a single item (the
"Maintenance Items"). HPL shall invoice RNP for the Maintenance Items
performed by HPL on the HPL Operated Facilities, and RNP shall pay such
invoice within 15 days of its receipt thereof. RNP shall be responsible for
any Meter Fee assessed, as defined in Section 3 above, and for the electric
power and phone service, required for the Interconnect.

Eric Gillaspie
713-345-7667
Enron Building 3886