----- Forwarded by Gerald Nemec/HOU/ECT on 07/13/2000 11:33 AM -----

	Gerald Lofton
	06/13/2000 04:35 PM
		 
		 To: Gerald Nemec/HOU/ECT@ECT
		 cc: 
		 Subject: Outline for proposed agreement

This is the info we discussed earlier.

Thanks, Gerald.
---------------------- Forwarded by Gerald Lofton/HOU/ECT on 06/13/2000 04:34 
PM ---------------------------


Rusty Belflower@ENRON_DEVELOPMENT
05/22/2000 10:59 AM
To: finchwj@texaco.com, Robert D Morgan@ECT
cc: Gerald Lofton/HOU/ECT@ECT 
Subject: Outline for proposed agreement  

Bill, 
I have revised the following to reflect what we discussed today. 

As an afterthought the only additional thing I would like to change is Item # 
1 to reflect minimum of twice or as deemed appropriate such as after a bad 
storm or when unauthorized "visitors" are reported at the site.


The following is a list of services for Texaco Pipelines LLC to monitor the 
leaching of
the new cavern:

A fixed fee of $1,800 per month, invoiced monthly, will provide
Enron with the following services:
1. Visual and physical inspection of the pump, wellhead, and associated
equipment (minimum twice in 24 hours or as deemed appropriate)
2. Pump pad oil as required
3. Backwash well twice a week
4. Communicate/coordinate with DOW on fresh water supply and brine
delivery
5. Routine maintenance and troubleshooting on well and associated
equipment (e.g. turbine meters, valve actuators, etc.)
6. Monitor sump area to avoid overflow
7. Write 3rd party work permits for any contract work being done on the
pump and well area
8. Start and stop fresh water booster pump as needed
9. Block in well in preparation for well logging
10. Obtain monthly electrical meter readings for Enron to verify direct
billing from Coastal Corp. to Enron.
11. Maintain files on well data
12. Forward Enron invoices to Enron in Houston.

For any maintenance activities, special projects, or other service requests
that extend beyond the 2 hours/day covered in the monthly fixed fee, Texaco
Pipelines LLC will invoice at $30/hour.  For contract services or materials
purchased by Texaco Pipelines LLC on behalf of Enron, Texaco will invoice
Enron at cost plus 15%.