These are not spot deals.  PanEnergy did not receive gas on the exchange.  
However, they did deliver gas to us at Cotton Valley.  According to the 
contract, when volumes are overdelivered, HPL buys the gas at GD-.10.  So, in 
order to correctly estimate our economics, I changed the price on the 
delivery to reflect how the deal will settle.  This occurred in August and 
September.  Any spot deals will be on seperate tickets.

Days 5 & 6, as well as 9-31 should be settled as if the exchange was in 
place.  (PanEnergy overdelivered about 7,800 per day, which we buy at Gas 
Daily -.10)

D


   
	Enron North America Corp.
	
	From:  Megan Parker @ ENRON                           10/03/2000 02:29 PM
	

To: Daren J Farmer/HOU/ECT@ECT
cc:  
Subject: Duke Energy Field Deal 157288 8/00

Daren:
I am taking over the Duke account from Katherine and am having trouble with 
8/00 production.  It looks like we have some spot deals included in the 
exchange deal 157288.  I think days 9 - 31, which are priced at GD - 0.10, 
need to be moved to a new ticket if they are spot.   Let me know if you 
agree.  Also, can you confirm for me that days 8/5 and 8/6 are suppose to be 
exchange?  The sale volume for those two days was zero, so there was no 
exchange.  We have not received any statements from Duke yet, so there is 
nothing to verify our volumes.

You may also want to look at Sept. 2000 for deal 157288.  It looks like spot 
deals are being included in the exchange deal.  Those will need to be moved 
to a new ticket if they are spot.

Thanks,
Megan