Re: Two producers, one meter

John,
My first question is how does Cutter determine Harley's volume? This
procedure should be added to the document providing for the fixed price. Has
Harley set up Cutter as his Seller's Representative so that he can provide us
notices, volumes, statements and receive Harley payments? If not, we should
add that to the Harley agreement and have Cutter sign in the capacity of
Seller's Representative. Call me at (713) 853-6895 to discuss in further
detail.

John M Singer@ENRON
02/15/2001 07:58 AM

To: Dan J Hyvl/HOU/ECT@ECT
cc: Nelson Ferries/Corp/Enron@ENRON, Debra Perlingiere/HOU/ECT@ECT
Subject: Two producers, one meter

Dan,
Cutter Oil Company, one of my producers has a meter connected to a Columbia
Gas Transmission line. Harley Drilling & Producing is currently putting a
small volume of gas through this meter. I pay Cutter for all the flowing
gas, Cutter then pays Harley for his portion. Harley is wanting to lock-in a
fixed price for a firm volume for part of his gas, about 40%-50%. Cutter has
in the past locked-in fixed prices for firm volumes and most likey will do so
in the future.

Two producers, Cutter Oil & Harley Drilling, wanting to lock-in fixed prices
for firm volumes for gas flowing through one meter owned by Cutter Oil:
Is there a method to lock-in a portion of Harley's production at a fixed
price which flows through Cutter's meter?
What contractual language needs be added to the ENFOLIO GAS PURCHASE
AGREEMENT?
Should an addendum be added to both contracts (Harley and Cutter)?

John