---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/30/99 
12:58 PM ---------------------------


Clayton Vernon@ENRON
12/27/99 08:27 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:  
Subject: natural gas production

Vince-

I spoke with Roy Kass of the Energy Information Agency this morning. Apart 
from clarifying the timeliness, or lack thereof, of the published 
state-specific wellhead production estimates, he indicates their scientists 
find severe weather in the fields (freezes, hurricanes) to be a far more 
significant issue in production, and in wellhead prices, than is severe 
weather in the Northeast, for instance. Also, he agrees with you as to there 
being strictly increasing marginal costs in production, there being a rich 
texture of wells in terms of their efficiency, technologies, maintenance and 
investment issues.

Clayton