FYI
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on 
01/02/2000 10:56 AM ---------------------------


Brent Hendry
01/02/2000 01:55 PM
To: Randy Young/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  
Subject: Argentina Rules of Conduct for Marketers

Among the several notices received from the ENARGAS last week were two items 
of immediate interest.  We received a notice of the Public Hearing which is 
scheduled for March 7th.  This hearing though is being described as a public 
hearing on the general issue of "Open Access" to distribution services 
including the resulting rates for such services rather than a public hearing 
on Ecogas' refusal to provide interruptible distribution services as 
requested by Renault.  The LDCs and Marketers were specifically invited as 
well as a number of government agencies and enduser associations but Renault 
was not directly invited.  "Industrial users with a lawful interest in the 
issue" were invited and this appears to be the invitation intended for 
Renault.  I am not sure of the rational for this change but according to the 
regulatory team we were not expecting this switch. 

The second item of interest is the request for comments regarding the 
establishment of "Rules of Conduct for Marketer's Activity".   Mike's summary 
of the request as well as a translation of the request is set forth below.

Let me know if you need any more information.

Brent

---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on 
01/02/2000 10:39 AM ---------------------------

Michael Guerriero

28/01/2000 12:11 PM

To: Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Guillermo 
Canovas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cristian 
Folgar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike G 
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Roberto 
Pensotti/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John J 
Shoobridge/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela 
Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rodolfo 
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian 
Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff 
Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea 
Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent 
Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marta 
Ortiz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kelly 
Kimberly/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dennis 
Vegas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert 
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James D Steffes@EES, Jane 
Wilson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Don Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Diomedes 
Christodoulou/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James M 
Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Argentina Rules of Conduct for Marketers

The natural gas regulatory body of Argentina "ENARGAS" has initiated a study 
of "Activities of Traders" in the natural gas sector. They are soliciting 
comments of industry participants on the following specific issues and any 
others deemed pertinent to be used in an analysis performed by the ENARGAS to 
establish future rules and regulations governing marketers.

1 Effective competition between distcos and marketers
2 Information provided by distcos and marketers to users
3 Tools used by marketers to capture users in compliance with independence, 
transparency and equity criteria
4 Types of services offered by marketers and contractual schemes used
5 Criteria for supply curtailments
6 Compliance to gas dispatch rules (ENARGAS Resolution No. 716/98), 
adequately following imbalances and nominations in the transportation 
systems   

Worst Case: In that Enron is the only commercially active marketer in 
Argentina, this study can be viewed as predatory and potentially restrictive 
to our future growth potential.
 
Best Case: As an industry we could collectively develop beneficial rule of 
conduct that will facilitate market growth, real competition, and better 
market protection from dominant sector players.

Guillermo Canovas will lead the effort to develop our formal response. Please 
assist by providing any supporting comments, suggestions, or information that 
may be deemed useful in developing and our position.  We have to respond by 
February 9th. 

ENARGAS 
Letter of Solicitation




MFG