Re: Coastal Oil & Gas Corporation ,
 Melissa,

Deal # 348450 has been created and entered in Sitara.  In addition, the=20
volume has been edited from 3,000 to 1,000 on deal # 135714 for MJG Inc. at=
=20
meter # 4179.  Thanks.

Bob



  =20
=09Enron North America Corp.
=09
=09From:  Melissa Graves                           07/28/2000 11:09 AM
=09

To: Robert Cotten/HOU/ECT@ECT
cc: Hillary Mack/Corp/Enron@Enron, Donald P Reinhardt/HOU/ECT@ECT, Susan=20
Smith/HOU/ECT@ECT, Vance L Taylor/HOU/ECT@ECT, Brian M Riley/HOU/ECT@ECT=20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Bob,=20

HPLC will be purchasing wellhead gas from the producer listed below for the=
=20
production month of August.  This production will be purchased on a "spot"=
=20
basis and a deal ticket should be created and entered into sitara based on=
=20
the following information:

Counterparty    Meter   Volume  Price

Coastal Oil & Gas Corporation  4179, Albrecht #4 Well 2,000Mmbtu/d  93% GAS=
=20
DAILY =20

Additionally, this is a Producer Svcs. deal and should be tracked in the IM=
=20
Wellhead portfolio... attached to the gathering contract.

Thanks,=20
Melissa
---------------------- Forwarded by Melissa Graves/HOU/ECT on 07/28/2000=20
10:02 AM ---------------------------
  =20
=09Enron North America Corp.
=09
=09From:  Melissa Graves                           07/10/2000 02:18 PM
=09

To: Hillary Mack/Corp/Enron@Enron
cc: Robert Cotten/HOU/ECT@ECT=20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Hillary, =20

See below for your answer.=20

Thanks,
Melissa
---------------------- Forwarded by Melissa Graves/HOU/ECT on 07/10/2000=20
02:17 PM ---------------------------


JoAnne Wagstaff@ENRON
07/10/2000 02:14 PM
To: Melissa Graves/HOU/ECT@ECT
cc: Robert Cotten/HOU/ECT@ECT=20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX =20

Melissa,

I have confirmed through emails from Bob Walker that the name of the=20
counterparty for the Albrecht #4 Well is Coastal Oil & Gas Corp.

Please let me know if you have any questions.

Thanks,
JoAnne
X68228


  =20
=09
=09
=09From:  Melissa Graves @ ECT                           07/10/2000 10:14 A=
M
=09

To: JoAnne Wagstaff/NA/Enron@Enron
cc: Robert Cotten/HOU/ECT@ECT=20

Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

JoAnne,=20

Can you confirm the counterparty name on this please.=20

Thanks,
Melissa
---------------------- Forwarded by Melissa Graves/HOU/ECT on 07/10/2000=20
10:13 AM ---------------------------
  =20
=09Enron North America Corp.
=09
=09From:  Robert Cotten                           07/10/2000 10:11 AM
=09

To: Melissa Graves/HOU/ECT@ECT
cc: =20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Melissa,

Hillary Mack called me about the following deal.  He believes the=20
counterparty should be Coastal Oil & Gas USA, L.P. rather than Coastal Oil =
&=20
Gas Corp.  Please advise.  Thanks.

Bob

---------------------- Forwarded by Robert Cotten/HOU/ECT on 07/10/2000 10:=
08=20
AM ---------------------------
  =20
=09Enron North America Corp.
=09
=09From:  Robert Cotten                           07/10/2000 09:01 AM
=09

To: Melissa Graves/HOU/ECT@ECT
cc: Daren J Farmer/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT, Susan=20
Smith/HOU/ECT@ECT, Vance L Taylor/HOU/ECT@ECT, George Weissman/HOU/ECT@ECT,=
=20
Hillary Mack/Corp/Enron@Enron, Amelia Alland/HOU/ECT@ECT=20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX =20

Melissa,

Deal ticket # 325550 has been created and entered in Sitara.

Bob


  =20
=09Enron North America Corp.
=09
=09From:  Melissa Graves                           07/07/2000 03:34 PM
=09

To: Robert Cotten/HOU/ECT@ECT
cc: Donald P Reinhardt/HOU/ECT@ECT, Susan Smith/HOU/ECT@ECT, Vance L=20
Taylor/HOU/ECT@ECT, George Weissman/HOU/ECT@ECT, Hillary=20
Mack/Corp/Enron@Enron, Amelia Alland/HOU/ECT@ECT=20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Bob,=20

Per George's note below, HPLC will be purchasing wellhead gas from the=20
producer listed below for the production month of July.  This production wi=
ll=20
be purchased on a "spot" basis and a deal ticket should be created and=20
entered into sitara based on the following information:

Counterparty    Meter   Volume    Price

Coastal Oil & Gas Corporation  4179, Albrecht #4 Well 7/7/00 - 1,500 Mmbtu/=
d
        7/8/00 - 3,000 Mmbtu/d
        7/9/00 thru 7/31/00 - 4,000 Mmbtu/d  93% IF/HSC =20

Additionally, this is a Producer Svcs. deal and should be tracked in the IM=
=20
Wellhead portfolio... attached to the gathering contract.

Thanks,=20
Melissa

------------------- Forwarded by Melissa Graves/HOU/ECT on 07/07/2000 03:03=
=20
PM ---------------------------
  =20
=09Enron North America Corp.
=09
=09From:  George Weissman                           07/07/2000 01:11 PM
=09

To: Melissa Graves/HOU/ECT@ECT, Shawna Flynn/HOU/ECT@ECT
cc: Sandi M Braband/HOU/ECT@ECT, Robert Walker/HOU/ECT@ECT, Vicente=20
Sarmiento/GCO/Enron@Enron, Brian M Riley/HOU/ECT@ECT, Lauri A=20
Allen/HOU/ECT@ECT=20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Melissa,

Based on the attached Contract Preparation Request for a Spot GTC for the=
=20
Coastal Oil & Gas Corporation Albrecht #4 well to be attached behind existi=
ng=20
meter 098-4179 on the Meyersville - West Mission Valley lateral (1130) in=
=20
Goliad Co., TX, please enter a deal into Sitara that will generate a spot g=
tc=20
for the remainder of the month of July.

For your information:

We expect the following  production at the point named above for the=20
remainder of the month of July, 2000:

7/7/00 - 1,500 Mmbtu/d

7/8/00 - 3,000 Mmbtu/d

7/9/00 thru 7/31/00 - 4,000 Mmbtu/d


ADDITIONAL INFORMATION:

Coastal has acquired 3 previously drilled wells subject to HPLC contract=20
96008903 behind Meter 098-4179 from Sierra 1996 I Limited Partnership and=
=20
M.J.G. Inc., as Seller=01,s Representative for Sierra effective 3/1/2000; t=
he=20
Legal Department has prepared and is currently circulating a Ratification a=
nd=20
Consent to Assign Document to reflect this transaction.

The spot gtc requested herein will cover gas from the Albrecht #4 well ONLY=
. =20
The Albrecht #4 will not be covered by 96008903, nor will the wells current=
ly=20
subject to 96008903 be subject to the spot gtc.=20

Shawna, please prepare the Termination Letter for 96008903 as requested.

George x3-6992




---------------------- Forwarded by George Weissman/HOU/ECT on 07/07/2000=
=20
01:04 PM ---------------------------


Debbie Boudar@ENRON
07/06/2000 03:25 PM
To: George Weissman/HOU/ECT@ECT
cc: Robert Walker/HOU/ECT@ECT, Vicente Sarmiento/GCO/Enron@Enron, Brian M=
=20
Riley/HOU/ECT@ECT=20
Subject: Re: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX =20

In regards to Meter 098-4179 the following information is what I have been=
=20
able to determine from the information available to me.

To your questions:

1. Cannot determine who owns this meter.  I will contact Molly Carriere on=
=20
Monday when she returns.

2. HPL has a fifty (50) ft. easement at this location which does contain=20
language for appurtenance rights within the 50'.

3. I pulled the meter file for this location which was prepared during=20
Project Rock and it does not contain a  Facility Agreement so I am assuming=
=20
one was not    located.

Hope this helps.


  =20
=09
=09
=09From:  George Weissman @ ECT                           07/06/2000 11:09 =
AM
=09

To: Debbie Boudar/NA/Enron@ENRON
cc: Robert Walker/HOU/ECT@ECT, Vicente Sarmiento/GCO/Enron@Enron, Brian M=
=20
Riley/HOU/ECT@ECT=20

Subject: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Debbie,

Meter 098-4179 is located at sta. plus 40+85 on Align. Dwg. HC-1130-18-H in=
=20
Goliad Co., TX.  In connection with the Facility Agreement request below, w=
e=20
need to know the following:

1.  Who owns the meter, HPLC or the operator?

2.  Do we own an easement and an access right of way to the meter station?

3.  Is there, to your knowledge, a Facility Agreement in place covering thi=
s=20
meter?  We cannot locate such an agreement in our records.

Thanks.  George x3-6992
---------------------- Forwarded by George Weissman/HOU/ECT on 07/06/2000=
=20
11:06 AM ---------------------------
  =20
=09Enron North America Corp.
=09
=09From:  George Weissman                           07/06/2000 09:37 AM
=09

To: Shawna Flynn/HOU/ECT@ECT
cc: Robert Walker/HOU/ECT@ECT, Brian M Riley/HOU/ECT@ECT, Vicente=20
Sarmiento/GCO/Enron@Enron, Melissa Graves/HOU/ECT@ECT, Lal=20
Echterhoff/HOU/ECT@ECT, James R Haden/HOU/ECT@ECT=20
Subject: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Shawna,

Attached is a Contract Preparation Request for a Facilities Agreement for t=
he=20
Coastal Oil & Gas Corporation Albrecht #4 well to be attached behind existi=
ng=20
meter 098-4179 on the Meyersville - West Mission Valley lateral (1130) in=
=20
Goliad Co., TX. =20

Of particular note:

Coastal has acquired 3 previously drilled wells subject to HPLC contract=20
96008903 behind Meter 098-4179 from Sierra 1996 I Limited Partnership and=
=20
M.J.G. Inc., as Seller=01,s Representative for Sierra effective 3/1/2000; t=
he=20
Legal Department has prepared and is currently circulating a Ratification a=
nd=20
Consent to Assign Document to reflect this transaction.

We have been unable to locate an existing Facility Agreement for the 3=20
previously drilled wells and suspect that no such Agreement exists.

The Facility Agreement requested herein is intended to cover only alteratio=
ns=20
to be made to existing Meter 098-4179 to install an H2S monitor and necessa=
ry=20
valving to allow HPLC to accept gas from the newly drilled Albrecht #4 well=
.

Once the H2S monitor has been installed and the Albrecht #4 well is ready t=
o=20
flow, we intend to paper the purchase of gas from the Albrecht #4 well only=
=20
via a spot confirmation pursuant to a spot gtc.  The Albrecht #4 will not b=
e=20
covered by 96008903, nor will the wells currently subject to 96008903 be=20
subject to the spot gtc.=20

Coastal will reimburse HPLC $39,600 for the cost of the installation.

George x3-6992






---------------------- Forwarded by George Weissman/HOU/ECT on 07/06/2000=
=20
09:21 AM ---------------------------
  =20
=09Enron North America Corp.
=09
=09From:  George Weissman                           07/04/2000 01:28 PM
=09

To: Lal Echterhoff/HOU/ECT@ECT, Pat Flavin/GCO/Enron@ENRON
cc: Brian M Riley/HOU/ECT@ECT, Jill T Zivley/HOU/ECT@ECT, Vicente=20
Sarmiento/GCO/Enron@Enron, James R Haden/HOU/ECT@ECT, Donnie=20
McCabe/GCO/Enron@ENRON, Mark Walch/GCO/Enron@ENRON, Steve HPL=20
Schneider/HOU/ECT@ECT=20
Subject: Coastal Oil & Gas Corporation
Albrecht #4 Well
Meter 098-4179, Goliad Co., TX

Lal,

We intend to attempt to connect  about 4,000 Mmbtu/d of new production from=
=20
the newly drilled Coastal Oil & Gas Corporation Albrecht #4 into the=20
westernmost end of the Meyerville - West Mission Valley 6" Lateral (1130) o=
n=20
the Mission Valley System 485 in Goliad and Victoria Counties behind a=20
existing meter 098-4179.  Coastal intends to add an incremental 1,000 Mmbut=
/d=20
each day for four successive days; in May, 2000, the meter flowed about 960=
=20
Mmbtu/d of 3.36% CO2 gas. =20

The content of the Albrecht #4 gas according to the Field Gas Analysis=20
prepared by Coastal Oil & Gas on 7/1/00:

Nitrogen 0.1124%
CO2  2.7224%
Methane 87.8390%
Ethane  6.1200% 1.628
Propane 2.0682% 0.567
Isobutane 0.3420% 0.111
n-Butane 0.4153% 0.130
Isopentane 0.1269% 0.046=20
n-Pentane 0.0904% 0.033
Hexanes 0.1634%    0.069
Heptanes Plus 0.0000%    0.000
    2.584

Can HPLC accept this gas?

Pat,

Coastal has verbally advised that the Albrecht #4 well contains more than=
=20
HPLC's permissible H2S content at the wellhead; the Albrecht #4 H2S content=
=20
is similar to that of the three wells currently producing 960 Mmbtu/d behin=
d=20
meter 098-4179, the Miller-Albrecht Unit #1-A and the Hoff Heller Gas Unit=
=20
#1A & #2D.  Coastal further purports that for some time now it (and/or its=
=20
predecessor, MJG, Corp.) has treated these three wells for H2S in a manner=
=20
sufficient to reduce the H2S content delivered into HPLC to permissible=20
levels.  Coastal has further indicated that it intends to reduce the H2S=20
content of the Albrecht #4 to permissible levels before delivering same to=
=20
HPLC.   In your opinion, should Coastal be forced to install an H2S monitor=
=20
for this new gas prior to flowing same to HPLC?=20

George x3-6992=20

=20

---------------------- Forwarded by George Weissman/HOU/ECT on 07/04/2000=
=20
12:48 PM ---------------------------


Christy Sweeney
06/29/2000 04:56 PM
To: Lisa Hesse/HOU/ECT@ECT
cc: Brian M Riley/HOU/ECT@ECT, George Weissman/HOU/ECT@ECT, Melissa=20
Graves/HOU/ECT@ECT, JoAnne Wagstaff/NA/Enron@Enron, Heidi Withers/HOU/ECT@E=
CT=20
Subject: Transport Request for Coastal Albrecht #4, Goliad County, TX

Lisa,

Attached is our Physical Well Connect form, including a Transportation Quot=
e=20
Sheet, for the Coastal Albrecht  #4 well in Goliad County, TX.  Please=20
provide us with a Transport Quote.  I have attached below a quote you gave =
us=20
in April 2000.  The volume is now 5,000/day.



I am headed that way with a map that shows the well's location in relation =
to=20
us, Tejas, Koch, and Tetco.  Please note 2% fuel.

Thank you!!!

Christy
39050

---------------------- Forwarded by Christy Sweeney/HOU/ECT on 06/29/2000=
=20
02:46 PM ---------------------------
  =20
=09Enron North America Corp.
=09
=09From:  Lisa Hesse                           04/07/2000 10:48 AM
=09

To: Brian M Riley/HOU/ECT@ECT
cc: Lauri A Allen/HOU/ECT@ECT, Mary M Smith/HOU/ECT@ECT, Heidi=20
Withers/HOU/ECT@ECT, Melissa Graves/HOU/ECT@ECT, George Weissman/HOU/ECT@EC=
T,=20
Susan Smith/HOU/ECT@ECT, Donald P Reinhardt/HOU/ECT@ECT, Vance L=20
Taylor/HOU/ECT@ECT, Lisa Hesse/HOU/ECT@ECT, Lisa Hesse/HOU/ECT@ECT=20
Subject: MJG, Inc. meter 4179 and Cokinos Meter 9676

 Brian,

Here are the transport rates for the below meters:

MJG Meter 4179 3.39% co2 1 year Quote April 00
Rel: 1180 avg. 1200-1988  .014
loc.     .05
P/l Density     .02
Quality      .049
Market Adjustment   .05
     ____
     ..183
less discount and market fee  .02
     ____
     .16



Please call if you have any questions or comments.  lisa 3 5901
melissa.graves@enron.com