Enron North America is interested in selling natural gas to  PNM Gas Services 
on a firm basis under the following terms and conditions:


Term:  April 1, 2001- March 31, 2002

Contract Price:  I.F. El Paso San Juan Basin less $.09

Firm Daily Quantitiy:  10000 mmbtu/day


 Delivery Point(s):  Delivered to PNMGS at the tailgate of the Williams Field 
Serives Ignacio Plant into Transwestern at Ignacio Plant;at the TW Blanco Hub 
; at WFS Kutz Plant into PNMGS; Milagro Plant into  Blanco Hub; or any other 
mutually agreeable pointsinto PNMGS.

Special Conditions:

ENA will selelct, nominate, and deliver the firm daily quantity at any of the 
Delivery Point(s).  ENA will notify PNM no later than 3:30 p.m. M.T. one day 
prior to gas flow day (Cycle 2) of the selected Delivery Point(s).