Sandy,

As a result of recent contract re-negotiations, the proposed Cabot Oil & Gas 
Marketing Corporation deals in Terrebonne Parish has changed significantly.  
First, our reserve study has been completed and we have determined that the 
Turtle Bayou Field production is expected to last only 18 months.  Second, 
Cabot has balked at our tiered pricing proposal, so 100% of the production 
will be index priced.  Third, Cabot will only commit its working interest 
share of production, not its partners' share.  Fourth, one of the 4 wells 
(Castex #1) has been removed from the contract.  Finally, Cabot has indicated 
it will not accept a price less than index flat.

A revised expectation of volumes for the two Cabot deals is attached.  For 
the Transco Turtle Bayou Field, the intitial volume is expected to be 9,406 
Mmbtu/d for 01/2001 declining to 7,049 Mmbtu/d for 05/2002; please obtain a 
bid from the East desk for this gas for the period indicated.  For the 
Tennessee Kent Bayou Field, the initial volume is expected to be 9,570 
Mmbtu/d for 01/2001 declining to 7,121 Mmbtu/d for 12/2003; please obtain a 
bid from the East desk for this gas for the period indicated.  Thanks.

George x3-6992



 
---------------------- Forwarded by George Weissman/HOU/ECT on 12/20/2000 
08:01 AM ---------------------------
   
	Enron North America Corp.
	
	From:  George Weissman                           12/11/2000 07:37 AM
	

To: Sandy Olitsky/HOU/ECT@ECT
cc: Jill T Zivley/HOU/ECT@ECT, Eric Moon/HOU/ECT@ECT, Melissa 
Graves/HOU/ECT@ECT, John Griffith/Corp/Enron@Enron, Robert 
Crockett/HOU/ECT@ECT 
Subject: Re: Cabot Oil & Gas Marketing Corporation

Turtle Bayou Field
Continental Land & Fur 58 #2 Well
Terrebonne Parish, LA
Facility 514800, Transco Zone 3

Kent Bayou Field
Continental Land & Fur 11 #1, 24 #1 & 28 #1 Wells
Terrebonne Parish, LA
Facility 820010, Tennessee La. Zone 1

Sandy, we are still finalizing the contract and expected volumes with Cabot 
Oil & Gas Marketing Corporation for the two Terrebonne Parish deals 
referenced above, but we expect to enter into a long term deal prior to the 
end of December.  Would you please re-confirm that the notional pricing set 
forth in your 11/13/2000 memo for the two Cabot Terrebonne Parish deals is 
still valid for 5 years firm out of January 2001 for 80% of the volumes cited 
in my original request .  Thanks.

George x3-6992 
---------------------- Forwarded by George Weissman/HOU/ECT on 12/11/2000 
07:26 AM ---------------------------
   
	Enron North America Corp.
	
	From:  Sandy Olitsky                           11/13/2000 02:11 PM
	

To: George Weissman/HOU/ECT@ECT
cc: Eric Moon/HOU/ECT@ECT, Jill T Zivley/HOU/ECT@ECT, Melissa 
Graves/HOU/ECT@ECT, John Griffith/Corp/Enron@Enron, Robert 
Crockett/HOU/ECT@ECT 
Subject: Cabot Quotes

George:

We got new quotes from the desk regarding Cabot.  Attached is the spreadsheet 
with the new numbers.  Let me know if you need anything else.  

Thanks.
Sandy