Forward Gas Purchases

---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/18/2001
10:33 AM ---------------------------

Enron Capital & Trade Resources Corp.

From: "Sean Breen" <sbreen@czn.com< 01/18/2001
10:32 AM

To: "Chris Foster" <cfoster@enron.com<
cc: "Lipke, Craig" <CWLipke@czn.com<, "Art Gelber" <agelber@gelbercorp.com<
Subject: Forward Gas Purchases

This note is in reference to our phone conversation earlier today.? As a
result of that conversation the following actions will be taken:

Gelber will add to its deal tracking spreadsheet a?column for Enron's
transaction number and make sure the field is maintained for all Enron
transactions;
A copy of the deal tracking spreadsheet for January 2001 will be sent to
Enron;
Linking of Basis transactions with NYMEX transactions will be done as
follows for any particular transaction month:

??? If fixed Basis volumes are less than fixed NYMEX??volumes, Gelber will
link Basis volumes to an?equivalent?volume of fixed NYMEX gas;
??? If fixed Basis volumes are?greater than fixed NYMEX volumes, all NYMEX
transactions will be linked to one or more?Basis transactions and the
balance of Basis volumes will be assumed to be linked to Index gas?
??? If there are no fixed NYMEX transactions, any Basis transactions will be
assumed linked to Index gas.

Please contact me if any of this is unclear or you have?issues.? Thanks.?