Chris--Below is a list of questions that we need to address fairly quickly.
Please look it over and let's talk.  The items are not prioritized in any way.

1-Enron's invoices show that for deliveries to Muncie (Indiana Gas) off ANR 
the
price index used is Michcon.citygate.GD.M.I.   The same is true for delivery
points into Michcon.   Is this correct, or are you actually using ANR ML-7 
plus
the Exhibit 1 increment applicable to Michcon?   Exhibit 1 specifies ANR ML-7
as the price index for Michcon.

2-CES has completely exited the following market areas/zones as of April 1:
TCO 6-11, TCO 6-12.   However, because Exhibit 1 contains projected volumes 
for
these two market areas in April 00, CES had to purchase from and resell to
Enron 90% of the April volumes contained in Exhibit 1.  Exhibit 1 contains
projected volumes for both market areas thru October 2000.   Are we required 
to
do a purchase/sell-back in each of these future months, or can we dispense 
with
this?  I refer you to Section 3.6 of the Gas Supply Assignment and Agency
Agreement (p. 11-12) as having some bearing on this issue.

3-The monthly volumes in Exhibit 1 off Iroquios into Central Hudson are
incorrect.  The 4,200 Dth is a monthly volume, not a Dth/day volume.  Since 
the
supply for this point is already arranged as a back-to-back with Duke Energy
and since Duke appears to be billing us directly for this gas, I do not intend
to do a simultaneous "buy/sell"  with Enron of the volumes in excess of the
(erroneous) Exhibit 1 volume.  If you disagree, let's discuss.

4-According to Exhibit 1, CES gets monthly capacity releases for TCO 4-21
(O&R),  TCO 7-3 (West Ohio), TGP Zone 6 (Boston Gas?), would you please 
provide
me with the Dth of capacity released to Enron as CES's agent on a monthly 
basis
for April at each of these points?   (I also need these numbers for January,
February, and March.)

5-How is the local production behind NYSEG, NFGD-PA, and CPA priced?

6-How will Enron invoice CES for daily swings on TCO in situations where gas
was merely being re-directed from one delivery point (where we were long for
that day) to another delivery point (where we were short)?


There will undoubtedly be other questions.  I will direct them to you as they
arise.

Thanks.

Doug Kinney
Ph:  703-561-6339
Fax:  703-561-7317