Subject: Rio Nogales Operation costs cap
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Wed, 14 Feb 2001 07:30:00 -0800 (PST)

Gerald,

Greg and SCS recommended we put a cap in for our expenditures on operation 
costs that HPL was willing to eat for the HPL Operated Facilities.  I have 
modified section 5 accordingly for your review:

5. Operation.  RNP shall operate and maintain the RNP Facilities in 
accordance with sound and prudent natural gas industry practice and shall be 
fully responsible for the routine operation and maintenance thereof and for 
all cost and expense associated therewith.  HPL shall operate and maintain or 
cause the operation and maintenance of the HPL Facilities in accordance with 
the Standards and with sound and prudent natural gas pipeline industry 
practice and shall be fully responsible for the operation and maintenance 
thereof and for all cost, expense and risk associated therewith.  HPL shall 
operate and maintain or cause the operation and maintenance of the HPL 
Operated Facilities in accordance with the Standards and with sound and 
prudent natural gas pipeline industry practice and shall be fully responsible 
for the routine operation and maintenance thereof and for all cost, expense 
and risk associated therewith, except RNP shall be fully responsible for any 
cost and expense associated with any repairs or maintenance activities that 
are in excess of $3,000.00 for a single item.  HPL shall invoice RNP for such 
maintenance, repair or capital expenditures performed by HPL on the HPL 
Operated Facilities, and RNP shall pay such invoice within 15 days of its 
receipt thereof.  RNP shall be responsible for any Meter Fee assessed, as 
defined in Section 3 above, and for the electric power and phone service, 
required for the Interconnect.  

Eric Gillaspie
713-345-7667
Enron Building 3886