TUFCO has agreed to remove the exception to consequentials for breach of 
quality provisions.  They are preparing executables and will forward to HPL 
for execution.  Thanks for your help.


---------------------- Forwarded by Gerald Nemec/HOU/ECT on 06/16/99 10:45 AM 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  Gerald Nemec                           06/15/99 03:14 PM
	

To: Steve -HPL- Schneider/HOU/ECT@ECT
cc: Ted C Bland/HOU/ECT@ECT, Robert D Morgan/HOU/ECT@ECT, Barbara Gray, Janet 
H Wallis/HOU/ECT@ECT 
Subject: TUFCO Trawick I/C

Steve,  We are currently negotiating an interconnect agreement for an upgrade 
of an existing interconnect off the Trawick System into TUFCO.  The 
interconnect is solely a delivery to TUFCO.  We are down to one point of 
difference in the agreement.  

Typically HPL disclaims any liability for consequential damages to the other 
party.  TUFCO is asking for an exception for any violation of gas quality 
specifications.  This would mean that if HPL delivered off spec gas to TUFCO 
which required cleanup of their pipeline system or caused damage to a 
customer of TUFCO's HPL would be liable under this Agreement.  

From a legal standpoint, we can make this exception, but I wanted to make 
sure everyone understood and agreed with the acceptance of this potential 
liability.  Assuming we are properly monitoring all our receipts there 
shouldn't be an issue. 

Please let me know what you think about this situation.  I can forward a copy 
of the interconnect agreement if you do not currently have one.