Mr. Hyvl,

The memo below is from TransCanada and they wish to move deals from one 
Agreement to another.  I wanted to pass this by you in case Legal had any 
objections to this action before we proceed.  Please advise.

Thank You,
Anthony
3-7911

---------------------- Forwarded by Anthony Campos/HOU/ECT on 06/05/2001 
09:39 AM ---------------------------


"Karen Ector" <karen_ector@transcanada.com> on 06/04/2001 04:03:47 PM
To: anthony.campos@enron.com
cc: Brent Ohr <brent_ohr@transcanada.com> 
Subject: Enron NA transactions with TransCanada Gas Services

Anthony:

Due to the sale of TransCanada Gas Services by TransCanada PipeLines
Limited, TransCanada would like to propose moving the transactions
listed below from an unsigned buy/sell to a signed GISB contract between
the parties dated March 2, 1999.  TransCanada is not optimistic that the
buy/sell will be signed prior to the closing date of the sale of
TransCanada's gas marketing business, and feels it would be in the best
interest of both parties to move these trades to a signed agreement,
rather than letting them continue under unsigned paper.

Enron reference number:

QF7769.1/526974 (TC reference #277157)
QF8940.1/527655 (TC reference #277158)
QG6978.1/533356 (TC reference #277455)
704599 (TC reference #277703)
1122197 (TC reference #293254)

TransCanada would appreciate Enron's consideration of transferring the
following deals as well, although I do not have Enron's reference number
for these transactions (I will fax copies of TransCanada's confirms, if
that would be useful):

TC274748:  Apr/01 - Nov/01 TC buys 10,000 MMBtu @ NYMEX last day (@
Niagara); trade date - 11/08/00
TC276714:  Apr/01 - Nov/01 TC buys 10,000 MMBtu @ NYMEX last day (@
Dawn); trade date - 12/05/00
TC278366:  Nov/01 - Apr/02 TC sells 5,000 MMBtu @ NYMEX last day (@
Dawn); trade date - 12/26/00
TC284004:  Nov/01 - Apr/02 TC buys 5,000 MMBtu @ NYMEX last day (@
Dawn); trade date - 12/01/00
TC297698:  June/01 - Nov/01 TC sells 5,000 MMBtu @ NYMEX last day (@
Dawn); trade date - 05/15/01
TC298717:  Apr/01 - Nov/01 TC buys 10,000 MMBtu @ NYMEX last day (@
Dawn); trade date - 2/21/01
TC298720:  Apr/01 - Nov/01 TC buys 10,000 MMBtu @ NYMEX last day (@
Dawn); trade date - 02/22/01

I believe Enron originally proposed the buy/sell agreement for these
transactions due to their duration or perhaps because at their trade
dates, their start dates were in some cases more than 6 months out.  The
signed GISB between the parties includes special conditions which make
the GISB contract more suitable for term trades than an unaltered GISB.
For this reason, and because most of these transactions are now flowing,
I am hopeful that Enron will be agreeable to moving these trades to the
signed GISB, so that the unsigned buy/sell file may be closed.

Thank you for your consideration of this matter.  My telephone number is
403.213.5621.  After June 8th I will be away from the office on
maternity leave.  In my absense, please contact Brent Ohr by email at
the address given above, or by telephone at 403.920.5662.

Regards,



Karen Ector
Paralegal
Contract Management