KAF storage project

As requested, this is the summary of what we have discussed regarding KAF deal.

Scenario 1:
HPL nominates 6,200 MMBTU/Day, Apr'02 - May'02, ( 409,000 MMBTU total) of their south Texas production into the Kathleen Anne Field in Wilson County, TX. And Enron replaces this same volume in the location of their choice.

Scenario 2:
Scenario 1 plus ENA sells HPL 500,000 MMBTU of storage service with an injection rate of approximately 15,000 MMBTU/Day and a withdraw rate of 37,500 MMBTU/Day to help them serve the swing on the Tuffco contract.

Notes: The field is not yet connected to HPL, but will be.

Thanks for your help.

George Huan
Gas Structuring