Re: Venice Gathering System LLC

In the past, Jesse would let me know about our imbalance and cashout price.
He would do the paperwork and trade out of the imbalance with another party.

Susan

Enron North America Corp.

From: Victor Lamadrid 03/22/2001 10:40 AM

To: Susan W Pereira/HOU/ECT@ECT
cc:
Subject: Re: Venice Gathering System LLC

Susan, Are you interested in imbalance trading for VGS?
---------------------- Forwarded by Victor Lamadrid/HOU/ECT on 03/22/2001
10:38 AM ---------------------------
To: Brenda H Fletcher/HOU/ECT@ECT
cc: Victor Lamadrid/HOU/ECT@ECT, Scott Loving/NA/Enron@ENRON, Jesse
Villarreal/HOU/ECT@ECT, Clarissa Garcia/HOU/ECT@ECT
Subject: Re: Venice Gathering System LLC

Brenda,
Victor and I totally agree with you. With the increase of wellhead
production and swings that we are seeing, we are totally revisiting the way
we handle wellhead. Beginning with March we will be taking a closer look at
what our production is doing and will enter appropriate cash out tickets on
Venice.

Just to let you know, we are going through the process of looking at wellhead
production on all our pipes and at what is the best method to handle.

Brenda H Fletcher
03/22/2001 09:30 AM
To: Katherine L Kelly/HOU/ECT@ECT
cc: Chris Germany/HOU/ECT@ECT, Kimberly S Olinger/HOU/ECT@ECT
Subject: Venice Gathering System LLC

Venice invoices for cashout on a one month lag. The February invoice cashed
out the January volume of <19,385< at $6.8121 for a total credit of
$132,052.55. The imbalance for February production is <4455< and to trade
the imbalances, VGS must be notified in writing on or before the 25th of
March.

There are no cashout tickets for VGS on the CPR cashout reports that I ran
for January and February production. From looking back at several months of
invoices, we appear to get cashed out every month. Would it be possible to
have cashout tickets entered for VGS?

If you have see any problems with the imbalance volumes reflected on the
invoice, please let me know.

Thanks,
Brenda