(1) - Let's try to make the term consistent with the gas purchase agreement.  
The contract number is 12-83789-101 with States Inc., and the term was 
initiated on 1/1/98 and runs through 12/31/03.  I am double checking with 
Melissa Graves on this. 

(2) The MDQ of 500 sounds OK.  I checked with Robert Cook, and the well is 
only producing 100/day.  We are also checking with the operator to confirm 
future activity.




Eric Gillaspie
06/01/2000 04:40 PM
To: Cheryl Lantz Marshall/HOU/ECT@ECT
cc: Gerald Nemec/HOU/ECT@ECT 
Subject: Chevron Compression deal

Cheryl,

FYI.  Gerald & I met with Ed Wick at Chevron today and went through the 
logistics of the deal.  I believe we had a meeting of the minds & he has 
agreed to use our form with some changes that we are fine with.  We have 
promised to get him a copy of the new compression deal by early next week.  
There are a few changes that Wick desires that are a business decision that 
we need confirmation on.  He wants to:
 (1) Change the term from 3 years+evergreen to 2 years+evergreen?
 (2) Is a MDQ of 500 MCF/Day acceptable?  ( He stated that we are currently 
flowing 50 MCF/day)
 
I have made the requested changes to the attached document.  Please review 
and forward me your comments as well as confirmation on the 2 questions 
above.  That is of course once you return from Boston.............



Hope you had a good trip....and welcome back,

Eric Gillaspie
713-345-7667
Enron Building 3886