Spinaker/N. Padre Island Block 883: Allocations ,
 Per our various discussions, I am sending an email to reiterate the 
disposition of volumes at Meter 9862, the Lehman Spinaker pay meter.  At this 
time, the General Land Office is transporting their share of production 
(21.8945%  interest) and HPL is purchasing the remaining 78.1055%.  

The GLO has nominated a transport volume at meter 9848, effective September 
1, 2000.  During this time, some test gas flowed.  I have had the HPL 
purchase back-dated to coincide with the transport nomination, and have had 
both deals moved to 9862.  The meter should probably be designated a 
Callout/Swing so that the proper equity percentages can be allocated after 
the production month by Volume Management.

For October production forward, I am going to re-rank/confirm the pay meter 
to ensure that the GLO receives a volume which should be close to their 
percentage after actuals close for the month.  This should alleviate any 
large balance swings on their agreement.

Anita:  For September, I need an accounting arrangement on deal ticket 
379424; HPL gathering agmt. at meter 9862.  Please unallocate the transport 
and purchase at 9848.  The meter is a daily swing right now.  Let me know 
when you are ready and I will change the allocation methodology.

I apologize for the length of this email, I want to make sure that we are all 
on the same page, to the extent that we need to be, prior to this deal 
getting too far down the road.  Please do not hesitate to call me if you have 
any questions, comments, concerns, etc.  I am at extension 35251.

Thank you all for your time and patience,

Mary
tom.acton@enron.com, robert.cotten@enron.com, pat.clynes@enron.com, 