Appoved.  See the attached which has some minor changes.





Christine Stokes
06/28/2000 08:49 AM
To: Steven Harris/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Susan 
Scott/ET&S/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON
cc: Kevin Hyatt/ET&S/Enron@Enron 

Subject: Transwestern Contract Approval Request

TRANSWESTERN PIPELINE COMPANY


Please review the attached non-standard discount letter for Sempra Energy 
Trading Corporation.  Pursuant to Sempra's Gallup Expansion Agreement 
allowing Sempra the right to "call" upon SoCalNeedles capacity, subject to 
availability, at a $.30 rate,  Sempra has requested to obtain 23,000 Dth/d of 
East of Thoreau (EOT) to SoCalNeedles capacity for the July - October term.  
Sempra's blended rate of $.2928 represents 21,500 Dth/d of capacity at 
$.30/Dth (their "call" capacity) and 1,500 Dth/d of additional Needles 
capacity sold to them at $.19/Dth.

Non-standard provisions contained in Sempra's original Gallup expansion 
Agreement  are included in the discount letter and contained in Paragraphs 3 
and 4:

 Paragragh 3 grants Sempra the ability to have alternate delivery points in 
Transwestern's EOT Area at the discounted rate in situations where SoCalGas' 
"window"  can be shown to reduce Sempra's nominated deliveries to SoCalGas.  
Sempra must provide Transwestern a written confirmation from SoCalGas 
indicating a reduction in scheduled volumes in order to obtain such alternate 
delivery capacity at the discounted rate.  If written confirmation is either 
not provided or Sempra elects to transport on an alternate basis to the EOT 
Area due to favorable market conditions, then the rate for such transport 
shall be the discounted rate plus $.01.

Paragragh 4 grants Sempra the ability during the term of the July - October 
transportation agreement, to move their primary delivery point from 
SoCalNeedles to PG&E/Topock, Mojave /Topock, or to the potential SWG 
interconnect subject to capacity availability and a 5 day notification 
period.  Sempra may also have the ability to return to the SoCalNeedles 
delivery during this term subject to the described conditions as well.

Please indicate you approval via REPLY WITH HISTORY.  If any questions arise, 
please contact me at x35702.