FYI.  Please note that the pricing to Peoples will be under a netback arrangement and has changed from its original proposal.  However, it will be for the same original volume of 30,000 mmbtu/day from the 30 wells.  Enron only has to schedule from 3 meters, not 30 wells.  As such, the inital pricing of $.01/ mmbtu no longer applies.

Regards, Jean
 -----Original Message-----
From: 	Grass, John  
Sent:	Thursday, April 26, 2001 11:37 AM
To:	Mrha, Jean
Subject:	

Linda Roberts, George Smith and I had a meeting with Rick Fox, CFO for Peoples Energy Production (PEP).  Rick provided our group with a detailed description of the services required by PEP. The scope of services has changed.  The 30 wells we originally priced all feed into three common points reducing the work required by logistics.  PEP does not need access to our system.  ENA Upstream will be marketing all the supply under a net back arrangement.

Enron Producer One will include ENA and ATS.   ENA will provide monthly reports to PEP and ATS related to the metered volumes and prices.  ATS will provide the E&P revenue distributions back to PEP. 

We will be making our proposal to PEP on Monday April 30, 2001.