Update from Calgary ,
 There are a couple of items that I wanted to update you on with respect to 
our outsourcing arrangements and staffing.  First, the outsourcing 
arrangement with Petro-Canada has been extended for an additional five-year 
term.  The commercial guys are very happy about this and have given a lot of 
credit to Energy Operations and Accounting for the successful renewal of this 
agreement.

Secondly, we have an existing outsourcing agreement with Startech Energy for 
volumes totaling 8 - 10 MMcf/d.  These properties have been purchased by a 
company called ARC.  The existing MSA for Startech properties is being 
terminated and a new agreement covering all of ARC's production is in the 
final stages of negotiation.  Starting in May/June, the volumes under this 
new arrangement will be between 50 - 60 MMcf/d.  This increased volume and 
associated receipt points creates the need to add one person to the Logistics 
group.  This position was not budgeted for, however,  I have received 
approval from Rob Milnthorp to add this position.  Please let me know if you 
have any concerns about this net staff addition.

Thanks
Peggy
sally.beck@enron.com