Clem--- The trader said this deal needed to be renegotiated, and I am waiting 
to hear what happened....I sent him an email today to remind him that I need 
an answer a.s.a.p......I'll let you know as soon as I hear.

Thanks,
Mark
x33396




Clem Cernosek@ECT
01/09/2001 12:09 PM
To: Daren J Farmer/HOU/ECT@ECT
cc: Mark McCoy/Corp/Enron@Enron, Edward Terry/HOU/ECT@ECT 

Subject: HPL Meter #985892 South Katy Gas Unit No. 2 #1

Daren:

During the month of September and October 2000, gas flowed into HPL's 
pipeline at the above meter that is owned by Duke Energy Trading and 
Marketing, LLC.  Prior to September 2000, the gas was purchased under 
contract #960439646, and Deal #133196 that expired on 8/31/2000.  Effective 
11/1/2000, the gas was again purchased from Duke under Contract #96021934; 
Deal #466305, but this deal expires on 11/30/2000. 

Currently, Logistic has September and October 2000 volumes recorded to HPL 
Strangers Gas Contract.  In order to correct this, HPL Logistics needs either 
(1) Deals #133196 or #466305 extended to cover September and October 2000, 
(2) a new deal to cover September and October 2000, or (3) Logistics needs 
approval to write-off these volumes to Unaccounted for Gas Loss.  (Print, 
sign, and return the original to Clem Cernosek).


 ______________________________________________
 Deal/Deal Ticket#/Customer (Buyer/Seller)

    OR


 _________________________________________________________
 APPROVAL to Write-off the volumes to Unaccounted for Gas Loss


In addition,  since Deal #466305 expires on 11/30/2000 and gas is still 
flowing, Logistics needs either (1) Deal #466305 extended, or (2) a new deal 
to cover December 2000 and any other future months that this production is 
flowing into HPL's pipeline.


 _____________
 New Deal #  

Thanks, Clem