Daren:
I am having trouble with 8/00.  The first issue is day 1 of the purchase at 
Fuels Cotton.  We have two deals in Sitara, spot deal 348951 and exchange 
deal 157288.  You had said previously that we would know a spot deal had 
occurred by the new deal ticket and the different pricing.  Since there was a 
spot deal, we put all of the volume for day 1 on deal 348951.  Duke says that 
day 1 was not a spot and that it should be on the exchange deal and priced at 
GD - 0.10.  The exchange deal is currently price at index - 0.05.  Please let 
me know which deal we are suppose to use and what the price should be.  
The second issue is the sale volume on deal 157278 for 8/00.  Duke is telling 
me that we sold them a batch of gas on the 7th, which we see, but that we are 
suppose to prorate the gas over the 5th, 6th, and 7th for the exchange.  This 
is a problem since gas was not confirmed for the 5th and 6th and pipeline 
shows all of the gas on the 7th.  This is a daily swing meter which 
electronically feeds into settlements.  We don't normally change these 
meters.  If you intended for us to prorate this gas, I will need your OK. The 
emails below are from Marta at Duke notifying us of the change.

Megan
---------------------- Forwarded by Megan Parker/Corp/Enron on 10/10/2000 
03:50 PM ---------------------------


mkhenderson@duke-energy.com on 10/10/2000 02:25:30 PM
To: stacey.neuweiler@enron.com, megan.parker@enron.com
cc: djdobb@duke-energy.com 

Subject: information regarding batch noms on Aug 5,6 &7, 2000


Read information below and see if this helps one of the unresolved problems
for August.

 Megan can you tell me how you arrived at the price for August 1?  I do not
know why August 1 would be priced differently than the other days of the
month when we had over deliveries for the Fuel Cotton Valley gas.  This is
priced at HSC daily - .10 per paragraph 3 of the contract.  If a different
price was worked out with Darren, I do not have record of it.  Darren is
out until next week.
---------------------- Forwarded by Marta K Henderson/Houston/PEFS/PEC on
10/10/2000 02:16 PM ---------------------------


Marta K Henderson
08/03/2000 11:26 AM

To:   Darrel F. Bane/EastTexas/PEFS/PEC@PEC, John A. Bretz/GCS/CEC/PEC@PEC,
      Chad W. Cass/GCS/CEC/PEC@PEC, Michael R.
      Cherry/EastTexas/PEFS/PEC@PEC, Bruce McMills/FtWorth/PEFS/PEC@PEC,
      William E. Speckels/GCS/CEC/PEC@PEC, Donna C.
      Spencer/GCS/CEC/PEC@PEC, Julia A. Urbanek/GCS/CEC/PEC@PEC, Dora J.
      Levy/GCS/CEC/PEC@PEC, briley@enron.com, dfarmer@enron.com,
      carlos.j.rodriguez@enron.com, Sharon Beemer/FtWorth/PEFS/PEC@PEC,
      Connie Wester/EastTexas/PEFS/PEC@PEC
cc:

Subject:  more changes to Eastrans Nomination changes effective 8/4/00

Please disregard the memo below and the following will apply for 8/4/00:

Deliveries to Eastrans will be 7,800 MMBtu/dy
Redeliveries into HPL from Fuels Cotton Valley

For 8/5, 8/6, & 8/7 (Saturday, Sunday & Monday) deliveries to Eastrans will
be 7,800 MMBtu/dy (23,400 MMBtu for 3 days).  The deliveries of this gas
will occur in a batch on Monday, 8/7.
Redeliveries into HPL from Fuels Cotton Valley
---------------------- Forwarded by Marta K Henderson/Houston/PEFS/PEC on
08/03/2000 11:21 AM ---------------------------


Marta K Henderson
08/03/2000 08:58 AM

To:   Darrel F. Bane/EastTexas/PEFS/PEC@PEC, John A. Bretz/GCS/CEC/PEC@PEC,
      Chad W. Cass/GCS/CEC/PEC@PEC, Michael R.
      Cherry/EastTexas/PEFS/PEC@PEC, Bruce McMills/FtWorth/PEFS/PEC@PEC,
      William E. Speckels/GCS/CEC/PEC@PEC, Donna C.
      Spencer/GCS/CEC/PEC@PEC, Julia A. Urbanek/GCS/CEC/PEC@PEC, Dora J.
      Levy/GCS/CEC/PEC@PEC, briley@enron.com, dfarmer@enron.com,
      carlos.j.rodriguez@enron.com, Sharon Beemer/FtWorth/PEFS/PEC@PEC,
      Connie Wester/EastTexas/PEFS/PEC@PEC
cc:

Subject:  Eastrans Nomination changes effective 8/4/00

Please increase deliveries to Eastrans to 30,000 MMBtu/dy effective 8/4/00

The redeliveries will be:

7,800 from Fuels Cotton Valley
22,200 to PG&E