Are you the steve referred to in item 1.  If so what is the difference 
between monthly business between Tufco and monthly business with another 
prohibited party either Lone Star Gas Company or Southern Union Gas Company.  
There should be no difference.
---------------------- Forwarded by Dan J Hyvl/HOU/ECT on 05/26/99 03:34 PM 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  Brenda F Herod                           05/26/99 02:58 PM
	

To: Dan J Hyvl/HOU/ECT@ECT
cc: Melissa Graves/HOU/ECT@ECT, Shawna Flynn/HOU/ECT@ECT, Barbara N 
Gray/HOU/ECT@ECT, Thomas A Martin/HOU/ECT@ECT 
Subject: Re: ECT and HPLR contracts not to be transferred to HPL  

I have given this information to Tom Martin, Greg McClendon and Ed Gottlob.  
Their questions/comments are summarized below.

TUFCO:  Tom has discussed with both Barbara and Steve that the desk (now 
HPLC) will be "trading" with TUFCO on a monthly and daily basis.  He 
understands that the term business needs to remain in ECT but that HPLC CAN 
trade with TUFCO.  This needs to be confirmed.
When reviewing the listing, all asked questions as to why certain 
municipalities were not included in the "prohibited" listing.  I explained 
our process of reviewing the counterparties, and how we noted the reason they 
were excluded (ie, sales to City of Austin are for power generation only).  
Can someone recap the counterparties reviewed as well as the logic for their 
exclusion from the prohibited list?  I would like to review it with 
Commercial.
I assume that Melissa is addressing the Western Gas Resources, Inc - Texas 
issue.
I discussed with Tom his feelings on the "marketing" enntitiy agreements 
remaining in ECT.  He believes it is more important to move as much of the 
business to HPLC than any benefits derived from the contracts remaining in 
ECT.  Therefore, we will assign those contracts with the marketing arms of 
prohibited companies such as Entex Gas Marketing.
I have talked with Joe Deffner regarding monetized contracts.  He is 
discussing with Kristina Mordant of Legal who is researching the 
documentation.  Initially they felt there were no large issues which would 
interfere but reserved complete answers until the review is completed.  My 
listing of monetized agreements include the following:  Brandywine, 
DEI/Calpine, GSU/Entergy, Southern Union, TUFCO, Union Carbide and Entex.
The transport agreements need to be reviewed.  Elsa Villarreal is out on 
vacation beginning 5/28 until 6/14.  She is reviewing the listing today and 
tommorrow, and is providing her advise as to terminations and new 
agreements.  I will coordinate with Darren Farmer also.


   
	Enron Capital & Trade Resources Corp.
	
	From:  Dan J Hyvl                           05/25/99 11:46 AM
	

To: Brenda F Herod/HOU/ECT@ECT, Melissa Graves/HOU/ECT@ECT
cc: Shawna Flynn/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT 
Subject: ECT and HPLR contracts not to be transferred to HPL

I have again reviewed the master listing which Melissa prepared last Thursday 
and compared the names thereon to the RRC listing of Investor Owned Companies 
Filing Annual Reports for calendar year 1997.  Based thereon, the following 
companies should be excluded from the gas sales agreements being transferred 
to HPL:

City of Brazoria
D & H Gas Company, Inc.
Empire Pipeline Corp.
Entex, a Division of NorAm Energy Corp.
Gulf Gas Utilities Company
Lone Star Gas Company
Markham Gas Corp.
Oasis Pipe Line Company
Petrofina Gas Pipeline Company
Reliant Energy - Entex
Southern Union Company  ---- This should be "Southern  Union Gas Company, a 
division of               Southern Union Company"
Southern Union Gas Company
Texas Utilities Fuel Company
Unit Gas Transmission Company Inc.


Additionally, we need to verify that Global Contract # 96003955 is not 
"Western Gas Resources-Texas, Inc."  If it is, it should also be excluded.

Also excluded is the Central Desk deal with "Central Illinois Light Company".

Have we determined if the agreements with "Entex Gas Marketing Company" and 
"Mercado Gas Services, Inc." are staying or going?