---------------------- Forwarded by Dawn C Kenne/HOU/ECT on 11/13/2000 11:23 
AM ---------------------------


Dawn C Kenne
10/10/2000 07:11 PM
To: Darron C Giron/HOU/ECT@ECT
cc:  

Subject: Synthetic Storage Liquidation Variances

Darron,

I am going to try to put my thoughts on paper, but call me if there are any 
further questions...

For April, we have 1,390,618 of expense on the back page.  I have narrowed it 
down to the following...
 Tagg #N06517 being double booked  $952,500  (the correct tagg # is N08646).  
 The other side of the storage transaction is in 9/00 physical liquidation 
file and it is for 1,866,000.
 Looks like double booking it actually made us money. Check it out though!
 
 137,000 in liquidations should have been moved to commodity expense to cover 
transportations
 OA, but it wasn't., so we this is income for us.

 Two deals were booked in sitara but not tagg and, therefore, no liquidation 
to cover the expenses.
 They are sitara #242510 and #128336.  The total of these equaled 429,477.  

For May, we have 1,889,707 in income on the back page.  This comes from:
 Another deal booked twice....Tagg #N05499 was booked as duplicate (the right 
one is #N08617)
 The other side (expense) of the deal was taken in Dec.99. Therefore, I see 
this as true income!
 
 Tagg #NJ4479, I will have to talk with you about this.  I don't fully 
understand it myself.

 93,924 (Tagg #NG0049), this should have been transferred to 3rd party 
sales/purchases.
 This storage deal is booked directly with the third party.

I have not looked at July in full, but have some print outs to give you.

Please let me know if you have any further questions on this crap!  I am just 
a phone call away.

Dawn
3-9353