Colleen, thanks for the update - as another part of the nat gas value chain, 
traded transportation, with and without EOL should be a priority.  However, I 
think we have to ensure that we have rules and procedures accepted by the 
FERC that will allow the market to work.

Jim, can you ensure that Colleen and Julie have the regulatory support needed 
to ensure that the market gets set up appropriately.

Thanks.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 10/28/2000 
12:22 PM ---------------------------
   
	Enron North America Corp.
	
	From:  Colleen Sullivan                           10/26/2000 10:03 AM
	

To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Transportation Status

Scott Neal told me that you asked recently where we stood on development of a 
transportation market in light of 637.  I would be happy to meet with you and 
let you know in more detail what I have been working on, but here is a quick 
synopsis.

We are putting new transportation products out on EOL--this should be ready 
for December business (assuming Lavo has no objections--I just sent him the 
information on the product).  They are simple products with no computerized 
interaction between EOL and Sitara or EOL and the pipeline bulletin boards 
(which we are still required to post through per the pipeline tariffs).  
Quite honestly, I have no idea how much activity these will generate since 
each product still has the potential for being "biddable" on the pipeline 
EBBs and there is not an easy solution around that.  Also, all completed 
transactions still must be posted on the EBBs and confirmed by the pipelines 
before the deal is actually completed.  This product does not make the 
release process any simpler; however, it does make it more visible by having 
bids and offers out on EOL, where people are more likely to be looking than 
the pipeline EBB.

The vision is to have the entire bidding and confirmation process through the 
EBBs automated, which would encourage a significant increase in trading 
activity for transportation, but there are several important infrastructure 
steps we must take first--you know, minor things like creating a 
transportation position screen in Sitara and getting the pipelines' EDI 
(Electronic Data Interchange) mechanisms in working form.  We are in testing 
with 9 pipelines as of today.

Also, as I'm sure you are aware, Julie Gomez is working with several 
pipelines to put their available IT (interruptible) space out on EOL (the 
last I heard this should happen for January business), and then I understand 
that she plans to work with EOL to allow third parties to put transportation 
bids and/or offers out on EOL in an "Altra-like" system--meaning ENA will not 
always be a party to those transactions.  

There are many changes occurring because of Order 637, but the pipelines are 
still going through their compliance filings and there are alot of complaints 
about those filings--which just means more time for implementation.

If you have any questions, please call me at x35514.