See the attached drafts for your review and comment.  The preswaps on gas and 
crude have been distributed for execution by Diane Anderson.  As discussed 
last week, and approved by the gas structure desk, the basis swap has been 
imbedded in the gas swap for the outyears and in the gas assignment and 
amendment document.  Should you have any comments, please advise.  

I will need prices and schedules to complete the swap paper.  Remember, 
schedules are to be at 97%.  Further, Jesus is to advise of how the 3% 
volumes remaining between KCS Energy and ENA under the preswaps are to be 
handled so that appropriate paper can be drafted.

As and when a closing day is set, please advise.

Diane Anderson:  By copy of this memo, would you please distribute the final 
unexecuted versions of the preswaps to the captioned working group by email?  
(VC0975.1 and VC0917.1)  Thank you.

Thank you everyone.





Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com