Melissa,

As you know, as of Jan 01, 2000 the Wellhead Portfolio has been segregated 
from the rest of HPLC's Physical Portfolio.  As a result of this segregation, 
it has become much easier to analyze and manipulate this data so that monthly 
"accrual value" can be determined.  This analysis has resulted in the 
realization that the Wellhead Potfolio creates approximately $275,000 of 
accrual value per month.  The main drivers of this accrual value are deals 
that have rolled into evergreen status, accrual term deals,  actual volumes 
greater than booked, half cent bid to mid spread, incorrect markings, and 
value withheld from MTM because of accrual costs.  Of the above, Greg Sharp 
will receive value associated with evergreen/accrual deals, actual volumes 
greater than or less than booked, and deals incorrectly marked.  Tom will 
keep value associated with his half cent bid to mid and accrual value needed 
to pay accrual costs (such as gas quality issues).  The breakout of this 
value has been on average 60% to Greg and 40% to Tom.  The following is a 
breakdown of 1st quarter accrual value.

January-

Total Accrual Value = $266,504

Greg's Value       Tom's Value
Evergreen Value =                         $140,750     Bid to Mid =       
$105,000
Accrual Value =                               $53,000    Accrual Costs 
=       $13,000
Actual Volumes>Booked =         $60,000           $118,000 
Incorrect Marking =                       ($105,000)
Total Value =                                   $148,750

February-

Total Accrual Value = $289,305

Greg's Value       Tom's Value
Evergreen Value =                         $145,000     Bid to Mid =       
$100,000
Accrual Value =                               $62,000    Accrual Costs 
=       $13,000
Actual Volumes>Booked =         $65,000           $113,000 
Incorrect Marking =                       ($95,000)
Total Value =                                   $177,000

March - 

Total Accrual Value = $292,145

Greg's Value       Tom's Value
Evergreen Value =                         $147,000     Bid to Mid =       
$106,000
Accrual Value =                               $59,000    Accrual Costs 
=       $13,000
Actual Volumes>Booked =         $66,000           $119,000 
Incorrect Marking =                       ($100,000)
Total Value =                                   $172,000

Let me know if you have any questions.

Eric

	Enron North America Corp.
	
	From:  Eric Bass                           04/07/2000 02:00 PM
	

To: Melissa Graves/HOU/ECT@ECT
cc:  
Subject: Re: Wellhead Accrual Income  

Melissa,

Here are the accrual values for Q1.  More details to follow.

Jan - $266,504
Feb- $289,305
Mar - $292,145

Eric


   
	Enron North America Corp.
	
	From:  Melissa Graves                           04/07/2000 01:51 PM
	

To: Eric Bass/HOU/ECT@ECT
cc: George Weissman/HOU/ECT@ECT, Gregory L Sharp/HOU/ECT@ECT 
Subject: Wellhead Accrual Income

Eric, 

Per Greg Sharp, he and Tom Martin discussed the Wellhead Accrual Income 
numbers today, and Effective Q1 2000, Greg will begin recognizing this 
accrual income in his financials.  

It is my understanding that the new Wellhead Portfolio in Sitara assists you 
in calculating this monthly number (which is estimated at $170,000 per 
month).  Could you please provide the detail behind this calculation, or if 
this data is pulled directly from Sitara, George and I could meet with you to 
become familiar with this data extraction process. 

Thank you, 
Melissa
X39173