Enron North America (ENA) is interested in purchasing Phillips Petroleum 
Company's volumes in the properties described in the attached E-mail dated 
9/19/2000.   ENA would like to propose the following prices.  Prices assume 
gas is being delivered to a pool.  If this is not the case please let us know 
as prices would need to be adjusted for applicable transportation, fuel and 
gathering and possibly price if the point is at a constrained location. 


                                                   ANR S.E. Gathered   -   
Inside F.E.R.C.  ANR  LA + $.0025
                                                   Columbia Gulf  -  Inside 
F.E.R.C. COLUMBIA LA + $.0075
                                                   Destin - Inside F.E.R.C. 
TRANSCO Zone 3 + $.01
                                                   Sonat  -  Inside F.E.R.C. 
SONAT + $.0075
                                                   Tennessee  -  Inside 
F.E.R.C. TENNESSEE  LA  + $.0075
                                                   Tetco -  Inside F.E.R.C. 
TETCO  WLA  +  $.0075
                                                    Venice - Inside F.E.R.C. 
TETCO ELA  +  $.0175
                                                    Trunkline  -  Inside 
F.E.R.C.  TRUNKLINE LA  +  $.00
                                                    Transco  -  Inside 
F.E.R.C.  TRANSCO +  $.0125



This E-mail is for discussion purposes only and is not intended to be 
complete and all inclusive of the terms of the related transaction.  The 
tranactions described herein are subject to further review and approval of 
ENA and execution of difinitive agreements containing all appropriate 
provisions, including those relating to credit and limitaion of damages.