Eric, Need your help on this.  Let's get a copy of the grazing lease that 
Candy is referring to in the E-mail.  I am not clear on what she means by 
having Merl operate the well.  I think she means allow him to graze this area 
under the terms of his existing lease, but I am not sure.  Can you get with 
Candy on this?  Thanks.

----- Forwarded by Gerald Nemec/HOU/ECT on 08/22/2000 09:14 AM -----

	Candace L Bywaters
	08/18/2000 07:21 AM
		 
		 To: David Kantenberger/GCO/Enron@ENRON
		 cc: Nathan L Hlavaty/HOU/ECT@ECT, Gerald Nemec/HOU/ECT@ECT, John 
Towles/NA/Enron@ENRON
		 Subject: Water Well @ Bammel

Nathan tells me that he has a request in to you for a dollar evaluation of 
the Hamill Gas Unit #1 water well that EOG recently assigned and conveyed 
over to HPL at my request.  Please advise me at your earliest convenience 
what that value may be so that we can appropriately get it on our asset 
ledger.  I am also awaiting a response from John Towles as to a clearer plat 
on this property as was originally requested by EOG some time ago which I 
assume we will use as an exhibit to the Operating Agreement..

Also, by copy hereof, I ask that Gerald or his designee prepare an Operating 
Agreement between HPL and Merl Vanek whereby Merl will be entitled to operate 
this well for purposes of his grazing lease at this facility.  HPL desires 
that Merl operate this well at his sole cost and expense and maintain it in 
good working order.  We can make the term of this Operating Agreement 
coterminous with his grazing lease which is established under an October 1, 
1998 Grazing Lease with an original term of one year from that date and 
year-to-year thereafter unless sooner terminated by at least 90 days' advance 
written notice prior to the end of the original term or any renewal term 
thereafter by one party to the other.  Merl's address is 2634 Milroy Lane, 
Houston, TX  77088 with a phone number of 281-444-8689 and a fax number of 
281-587-4200.  I have already advised Merl of the effective ownership of this 
well by HPL and he will be operating it accordingly as his need to do so is 
urgent, so I request that this document be prepared as soon as possible in 
consideration of HPL's liability.

Thanks to all for your help on this.