Message-ID: <32380418.1075842832502.JavaMail.evans@thyme>
Date: Tue, 13 Feb 2001 07:19:00 -0800 (PST)
From: eric.gillaspie@enron.com
To: gerald.nemec@enron.com
Subject: Rio Nogales Operation costs cap
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G,

Greg and SCS recommended we put a cap in for our expenditures on operation=
=20
costs that HPL was willing to eat for the HPL Operated Facilities.  I have=
=20
modified section 5 accordingly for your review:

5. Operation.  RNP shall operate and maintain the RNP Facilities in=20
accordance with sound and prudent natural gas industry practice and shall b=
e=20
fully responsible for the routine operation and maintenance thereof and for=
=20
all cost and expense associated therewith.  HPL shall operate and maintain =
or=20
cause the operation and maintenance of the HPL Facilities and the HPL=20
Operated Facilities in accordance with the Standards and with sound and=20
prudent natural gas pipeline industry practice and shall be fully responsib=
le=20
for the operation and maintenance thereof and for all cost, expense and ris=
k=20
associated therewith, except for any Meter Fee assessed, as defined in=20
Section 3 above.   Notwithstanding the foregoing, HPL shall notify RNP five=
=20
(5) days prior to performing any scheduled maintenance, repairs or capital=
=20
expenditures on the HPL Operated Facilities that are in excess of $3,000.00=
=20
for a single item for RNP=01,s approval, which shall not be unreasonably=20
withheld.  HPL shall timely invoice RNP for such maintenance, repair or=20
capital expenditures performed by HPL on the HPL Operated Facilities, and R=
NP=20
shall pay such invoice within 15 days of its receipt thereof.    RNP shall =
be=20
responsible for the electric power and phone service, required for the=20
Interconnect. =20

Eric Gillaspie
713-345-7667
Enron Building 3886