---------------------- Forwarded by Gerald Nemec/HOU/ECT on 02/17/2000 01:32 
PM ---------------------------


Steve -HPL- Schneider
02/08/2000 10:53 AM
To: Gerald Nemec/HOU/ECT@ECT
cc: James R Haden/HOU/ECT@ECT, Kenneth W Kaase/HOU/ECT@ECT 
Subject: CPS Interconnect Agreement

Revision:  HPL will operate to the outlet flange of the regulation (not 
separation) equipment as reflected on Jim's drawing that will be Exhibit A.

---------------------- Forwarded by Steve -HPL- Schneider/HOU/ECT on 
02/08/2000 10:51 AM ---------------------------


Steve -HPL- Schneider
02/07/2000 05:40 PM
To: Gerald Nemec/HOU/ECT@ECT
cc: James R Haden/HOU/ECT@ECT, Kenneth W Kaase/HOU/ECT@ECT 
Subject: CPS Interconnect Agreement

I have talked to Dan McWhirter with CPS and the agreement needs to altered to 
reflect the following, as needed.  HPL will construct a tap, tap valve, 
riser, and check valve off the South Texas 30" JV pipeline, with EFM and 
SCADA equipment on the meter facilities.  We will own, operate and maintain 
such facilities , but will be reimbursed (with IRS tax gross-up) by CPS.  
Ownership will break at the outlet flange of the check valve, plus the EFM 
and SCADA equipment.  CPS will construct and own the remainder of the 
facilities installed, such facilities to the outlet flange of the separation 
facilities (including tank and secondary containment)  being installed to 
HPL's specs.  HPL will operate and maintain these facilities.  Our EFM will 
be custody transfer, with their EFM being check measurement.  Such facilities 
are to be installed so that HPL remotely controls the volume flow through the 
meter.  All maintenance costs on this sector will be paid by HPL and 
reimbursed by CPS upon invoice.  Any maintenance expenditure over $3,000 per 
event will require pre-notification to CPS.  All other facilities downstream 
of separation with be constructed, owned, operated and maintained by CPS.  As 
compensation for handling the separation facilities and liquids recovered, 
CPS pre-transfers ownership and title to such recovered liquids to HPL and 
warrants title to HPL.  Jim Haden will provide a revised Exhibit A depicting 
the facilities and the ownership break point.  Jim, you need to review and 
approve the facilities to be installed above to our specifications, as 
required.  If you have any questions, please call.