I think this may be yours.  If not, please let me know.  
---------------------- Forwarded by Debra Perlingiere/HOU/ECT on 04/12/2000 
02:30 PM ---------------------------
   


From:  Stacey Richardson                                                      
       04/12/2000 02:07 PM	
	
	
	                           
	

To: Debra Perlingiere/HOU/ECT@ECT
cc: Cyndie Balfour-Flanagan/Corp/Enron@ENRON, Tricia Truong/HOU/ECT@ECT, 
Linda S Bryan/HOU/ECT@ECT, Connie Sutton/HOU/ECT@ECT 
Subject: Hall Energy Company/Willis Enterprises Corp.

Debra,

Per the info below, can you please review the information and see if you can 
find any information as to why we can't use the Committed Reserves contract 
mentioned.  I'd also like to terminate the two GTC contracts listed as 
well.   Client Services needs to clear up this issue very soon and I'd like 
Legal to sign off on the terminations.

Please don't hesistate to call me at x30569 or Cyndie Balfour-Flanagan at 
x31443 if you have any questions or need further information.   Thanks!

---------------------- Forwarded by Stacey Richardson/HOU/ECT on 04/12/2000 
02:00 PM ---------------------------
   


From:  Stacey Richardson                                                      
       04/12/2000 02:02 PM	
	
	
	                           
	

To: Tricia Truong/HOU/ECT@ECT
cc: Cyndie Balfour-Flanagan/Corp/Enron@ENRON, Connie Sutton/HOU/ECT@ECT, 
Linda S Bryan/HOU/ECT@ECT 
Subject: Hall Energy Company/Willis Enterprises Corp.

Tricia,

I've uncovered some troubling information regarding the issue with Hall 
Energy Company and Willis Enterprises Corp. based on the info you sent me.  
Apparently, at one time, Enron was assigned a Committed Reserves contract 
with Hall Energy Company (Global #96003960) originally signed 05/07/84, 
effective with first production 10/04/84, that is still effective.  Two deals 
were entered in Sitara under this contract, covering 02/98 and 04/98 
production.  From 05/98 production on, deals were tied to a GTC Purchase Spot 
contract (Global #96014936).  

I'm not sure why the GTC was set up when we had a purchase contract already 
in place; it appears that this GTC covers the same well (Stewart #1) that the 
Committed Reserves contract covers.  Not only that, but a point was set up 
under the GTC (we don't set up points under GTCs, only under Committed 
Reserves).  It was the same point under the Committed Reserves contract.  
Also, later deals entered in Sitara even include this exact meter used for 
the GTC.

You also included documentation from Hall authorizing payments to Willis.  
I've reviewed all contract and correspondence files for this contract and can 
find absolutely NO documentation showing that Willis in an interest owner in 
this well.  Do you have any division orders or other assignments showing that 
Willis has an interest in the Stewart #1?  If that's the case, I can add 
Willis as a seller under the Committed Reserves and we can have all deals 
moved to the original contract.  However, Willis still will not receive a 
separate payment.  Enron will only issue payment to the counterparty on the 
contract (the operator) so Willis will have to receive payment from Hall.

A GTC Purchase Spot contract (Global #96007659) was also set up for Willis 
Enterprises Corp.  That could technically have been for separate purchases, 
but more recent deals in Sitara show that these purchases were from the same 
meter point for the Stewart #1 that the GTC for Hall used.  I can find no 
documentation on either of the Hall or Willis GTCs to reflect that these were 
set up to handle different wells than the one in question.  Without any other 
paper, it is my guess that both the Hall GTC (96014936) and the Willis GTC 
(96007659) were set up in error.  The people responsible for setting up the 
contracts are no longer around and would probably not remember anything if 
they were.  I would like to run this by Legal, but my inclination is to 
cancel both GTCs and settle under the Committed Reserves contract set up 
originally for Hall.  I will forward this information to Legal to see how to 
proceed.

I know all this is confusing, but please let me know if you have any 
additional documentation from Willis or if you have any questions.  I will 
turn this matter over to Cyndie Balfour-Flanagan (who handles the "H" 
counterparties) and she will let you know the outcome.  Of course, you can 
always call me with questions, but this is really her domain since the 
contract in question is with Hall.

Thanks,
Stacey  x30569