Lillie,  You might try checking with Jack Simunek.  I am not sure there is 
any documentation on this, but he has a pretty good handle on this issue.  
Jim Coffey at one time issued a one page memo on just this subject.  Might 
also check with him.  Once we decide whether to apply this or not, putting 
this into a contract is a relatively simple matter.





Lillie Pittman
08/04/99 05:54 PM
To: Gerald Nemec/HOU/ECT@ECT
cc: Mary Sontag/Corp/Enron@Enron, Yvette Miroballi/HOU/ECT@ECT 
Subject: Tax Gross Up for HPL

Gerald,

Do you have any information on the tax gross up percentage for HPL.?  Also,  
is there an established policy for applying gross up to reimbursable 
projects?  
I have not seen any contract language for HPL projects  that address gross up 
as part of the producer's cost.  I have, however, occasionally seen gross up
included on the work order estimate. 

If you have any documentation, would you please forward to me.