Subject: Columbia Energy Document Review
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Fri, 12 Nov 1999 03:11:00 -0800 (PST)

I again reviewed the storage contracts on which large value has been 
assessed.  The Cove Point LNG, Limited Partnership and Egan Hub Partners, 
L.P. are both FERC regulated entities and both agreements have negotiated 
rates.
The Cove Point deal has a negotiated reservation charge and the Egan Hub 
Partners has a negotiated storage reservation and injection charge.  Since we 
are buying the assets of Columbia and assigning the contracts to Enron and  
these deals are at less than max rates, they would be subject to reposting 
upon assignment and there would be no guarantee that Enron would receive 
these rates in a competetive bidding situation.  It is my understanding the 
discounts were taken into account for valuation purposes, however these 
discounts are at risk due to posting requirements. 

The remainder of the storage contracts would require consents to assign.

Note: Any transport contracts with discounted rates would be subject to the 
same as above.

I am verifying the reposting requirements with Randy Rich of Bracewell & 
Patterson (FERC Counsel) and he is to get back with me early this afternoon.  
I will let you know if anything changes.