Storage Deal

Hunter -

Our storage proposal was signed last night, so Peoples is ready to go. Tony
is out of the office this morning, but Dave Wear can transact if the spread
comes our way. As discussed, we would like to buy 5 BCF physical fix price
March and sell physical fix price May for flat. We would consider buying
some April if March can't be done for flat. We will be watching the screen
this morning, but let us know if you see an opportunity to transact. I think
there is a big incentive for Enron to get these hedges on, because I expect
that Peoples will want to roll the hedges with market movement, which, of
course, will also be at your bid/offer. I hope to get a meeting set up with
you guys and Peoples guys later today to further discuss execution strategy,
but I didn't want to market to get away from us, if the spread was there this
morning.

Richard