Gerald:

I understand from Merrill you got the info. re. Pruett Gushey (which I don't 
know the correct spelling for).

If you haven't already done so, you might want to consider getting some input 
from Richard Sanders regarding the Wildhorse situation.

Teresa  





Teresa G. Bushman
Enron North America Corp.
1400 Smith Street, EB 3812
Houston, TX  77002
(713) 853-7895
fax (713) 646-3393
teresa.g.bushman@enron.com


----- Forwarded by Teresa G Bushman/HOU/ECT on 07/24/2000 12:09 PM -----

	Dan J Bump@ENRON
	07/24/2000 10:22 AM
		
		 To: Gerald Nemec/HOU/ECT@ECT
		 cc: Joan Quick/HOU/ECT@ECT, Scott Josey/Corp/Enron@ENRON, Barbara Gray@ECT, 
Brian Redmond/HOU/ECT@ECT, Teresa G Bushman/HOU/ECT@ECT
		 Subject: Re: Wildhorse Letter

Gerald --

I have provided a few coments (redlined) to your draft letter attached below.

However, I wanted to offer the following ideas for discussion with you and 
the others listed above as to potential inclusion in the Wildhorse letter:

 A.  Should we request written notification from Wildhorse related to the 
shut-in status of Entrada production?  Should we request written notification 
related to the recent curtailment of Dakota production?  [As we've discussed, 
Enogex never requested anything in writing from Wildhorse, so we do not have 
any historic documentation of Wildhorse's claims].

 B.  Should we identify (potential) contractual issues due to the curtailment 
of Dakota production; e.g.  Sec. 6 detailing the (wellhead) delivery pressure 
requirements under this contract, et al?  [As we've discussed, the system 
pressures have increased due to (initially) gas being re-routed by Wildhorse 
over the past two years which has loaded the San Arroyo system, and now the 
NWPL quality issues and subsequent Wildhorse curtailments has increased 
pressures system-wide.  If Wildhorse based their ability to allow these 
problems to persist by referring to Sec. 7 "Gas Quality" of the agreement, 
what remedies can we request....partial release of Dakota gas?].

Here's the frustration, based on conversations with producers in the area and 
the documents we've received from Enogex, Wildhorse has continued to attach 
non-pipeline quality spec gas to their system over the past couple years to 
increase gathering revenues, yet has not invested any $$$ for processing of 
this gas to meet or exceed the specs of downstream pipelines.  Then, they use 
the downstream pipes as the reason for shutting in all their captive 
producers, and have thus far offered no solutions to the system pressure and 
quality issues discussed above.  Therefore, its critical that this letter 
gets to the "right" people within Wildhorse and, if possible, make reference 
to some element of timing (e.g., reasonable dispatch, commercially reasonable 
manner, etc.). 


Thanks.

Dan