I spoke with Kent Harris at Wildhorse today and he stated there position to 
me on a few things.

1.  Our Interruptible noms to NWPL for Wed. were not cut due to contractual 
reasons, we were cut due to a lack of capacity.  He said that the San Arroyo 
#2 compressor was down and without it they cannot make additional deliveries 
to NWPL.  They hope to have it up by friday and will try to provide us some 
capacity into NWPL.

2.  Kent reiterated their position regarding our contract by stating that 
"the intent of the original contract was not to take gas through other 
systems other than the Mesa system".  In addition he stated that we do not 
have the right to choose which pipeline our gas is delivered to.

3.  He also asked whether or not we were willing to negotiate on the current 
situation or if we wanted to let the 'lawyers fight it out".  I reiterated 
that we have been waiting for them to either acknowledge that they will 
gather the entrada gas under the current contract or provide us with another 
alternative.  Absent either of those 2 things happening all we can do is try 
to live by the existing agreement.  He stated that they have new estimates on 
the cost to construct a new line through the South Canyon and it is 
approximately $1MM less than their original esitmate.

We left it that he would determine whether or not they would gather  the 
Entrada under the existing contract or make a new proposal that would most 
likely wrap the Entrada and Dakota up under one new deal and replace the 
existing contract.

I told him we would determine whether or not we wanted to "let the lawyers 
fight over the existing contract" or work on a new deal for all the 
production.

P.S.  They are still very interested in some type of Joint Venture.

Mark
----- Forwarded by Mark Whitt/NA/Enron on 10/03/2000 11:07 AM -----

	Theresa Staab
	10/03/2000 09:21 AM
		 
		 To: Mark Whitt/NA/Enron@Enron
		 cc: Paul T Lucci/NA/Enron@Enron, Nicole Cortez/NA/Enron@Enron, Steven P 
South/HOU/ECT@ECT, Jacqueline P Adams/HOU/ECT@ECT, Stacey J 
Brewer/HOU/ECT@ECT, Joan Quick/HOU/ECT@ECT
		 Subject: Crescendo Noms into NWPL

Liz Orr with Wildhorse just called to inform me we cannot nominate into 
NWPL.   Her legal department has informed her there are issues with the 
contract and until they inform her otherwise, our gas can only flow into 
Questar.   Physically, we can flow into NWPL but contractully we cannot.

We have changed the nominations back to Questar for tomorrow's gas day.

Sorry about that, (we tried)

Theresa