Peoples Meeting Summary

The following is a brief summary of the results of yesterday's video
conference and this morning's follow-up session with Tim Hermann. The
following prospects all possess some degree of market/financial opportunity
based upon input from the various commercial people present during the
meeting.

1. Peoples' Mahomet into Trunkline at Manlove Delivery Prospect.
Put gas into Trunkline for redelivery into higher priced Michigan markets.

2. Alliance Take-Away into Peoples' system.
Enhance Peoples' ability to take gas from Alliance into Peoples' 24" line
and redeliver into Border and/or Peoples high pressure Mahomet system. Will
take compression and pipeline.

3. Nicor Interconnect/Delivery from Peoples' system.
Deliver gas from Peoples into Nicor to capture basis differential when
present. Also connects these two large systems to make a more fluid market
center.

4. Converting Midwestern Receipt into Mahomet into a bi-directional meter.
Would allow deliveries of Peoples Mahomet gas into Midwestern Gas.
Attractive if Midwestern Gas reverses flows and starts flowing west to east.

5. Midwest/Chicago Hub Compressor Station Project

There was also a plan to hold an "Alliance Impact" meeting in Houston perhaps
next week. The purpose of this meeting is to bring together Enron's Houston
Midwest Commercial, Chicago/Peoples, and Canadian offices for an all day
session on Alliance Pipeline and its impact on the Midwest markets. Laura
Luce is going to coordinate this meeting.

Chris Sonneborn is currently analyzing the operational feasibility of these
options and is scheduled to have preliminary results written up on August
18th.

Please contact me at X-58005 if you require additional information.

Thanks,
Bill Brogan