Dan,  Any input you have on this contract would be appreciated.


----- Forwarded by Gerald Nemec/HOU/ECT on 12/05/2000 04:11 PM -----

	Lauri A Allen
	12/05/2000 02:53 PM
		 
		 To: Gerald Nemec/HOU/ECT@ECT, Eric Gillaspie/HOU/ECT@ECT
		 cc: Daren J Farmer/HOU/ECT@ECT, Edward.D.Gottlob@enron.com
		 Subject: Texas General Land Office IT Transport

Gerald/Eric-

I have a couple of questions regarding TGLO transport contract 
012-88494-202.  We are currently delivering a volume of 28.000mm into various 
Midcon interconnects on this contract that are designated to go to 
Reliant/Entex for the purpose of heating HISD schools.  The transport 
contract stipulates different rates for this delivery depending on whether 
the gas is intended for state facilities or not.  My first question, then, 
is:  are HISD schools considered state facilities?  And, if HISD schools are 
considered state facilities, does the fact that this gas is being delivered 
to them via Reliant/Entex utilizing Midcon's pipe make any difference?

I am asking these questions not only to assure that we are recouping the 
correct transport rate, but also to determine what the consequences might be 
if I interrupt this delivery.  We are having difficulty getting enough gas 
into Midcon to cover our Entex noms and I am just exploring my options.  I 
would also expect that this volume should decrease when HISD closes for the 
Christmas holidays- does the fact that this is an IT agreement give me enough 
leverage to cut this nom if TGLO does not do so voluntarily?

Thanks for your help.