Donald,

Back in October we had the gas received by HPL at the above meter moved to 
Strangers Gas pending a call from Coastal to renegotiate a contract for Sept 
2000 gas.  Since volumes can no longer be allocated to stranger,s gas it has 
been placed on an MJG deal which was the only valid deal available for Sept 
2000.
I assume Coastal has not contacted Brian as of yet.  Is it possible to have a 
deal created for Coastal with a price of zero?  I know that we definitely do 
not want to pay MJG for this gas, but as long as the volume is sitting on 
their deal there is a possibility that someone may inadvertently send the 
payment out.  Let me know what you think.

Thanks,
Nick
x36454
---------------------- Forwarded by Nick Moshou/Corp/Enron on 01/29/2001 
08:34 AM ---------------------------


Donald P Reinhardt@ECT
10/27/2000 11:09 AM
To: Mary Poorman/NA/Enron@ENRON
cc: Nick Moshou/Corp/Enron@ENRON, Anita Luong/HOU/ECT@ECT, Brian M 
Riley/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON, Daren J Farmer/HOU/ECT@ECT, 
Melissa Graves/HOU/ECT@ECT, Vance L Taylor/HOU/ECT@ECT 

Subject: Re: Coastal Ctr# 96008903 Meter 0984179 Sit#135714
  

Having discussed the matter with Brian Riley, HPL has no intention of 
contacting Coastal to negotiate any type of deal affecting the gas received 
in September at at Meter 4179.  It was Brian's opinion that the gas should be 
considered Strangers gas since HPL has no contract or price.   It is 
suggested that Nick Moshou contact his counterpart at Coastal, relaying this 
information and suggesting Coastal's trader contract Brian Riley.

Donald




Mary Poorman@ENRON
10/27/2000 10:05 AM
To: Nick Moshou/Corp/Enron@ENRON
cc: Anita Luong/HOU/ECT@ECT, Brian M Riley/HOU/ECT@ECT, Pat 
Clynes/Corp/Enron@ENRON, Daren J Farmer/HOU/ECT@ECT, Donald P 
Reinhardt/HOU/ECT@ECT 
Subject: Re: Coastal Ctr# 96008903 Meter 0984179 Sit#135714
  

Nick,

I understand that they terminated their agreement.  However, I don't feel 
that we can confiscate their production.  We need to either pay them for the 
gas, or cut a deal to redeliver a like volume to them at another meter.  
Given the decrease in prices from September to current and prompt month, I 
would guess that they want to be paid.  We won't know that until we call 
them.  I don't know where the responsibility lies as far as calling to 
explain to them that we took delivery of their gas until the meter was 
shut-in.  

Please let me know if I can do anything further to assist.

Mary