From: drew.fossum@enron.com
To: susan.scott@enron.com
Date: 2000-01-04 12:11:00+00:00
Subject: Re: More on El Paso Protest of ENA Purchased Capacity

I think you have a conflict for that one, but I understand you are available 
for the March 14-5 one!  DF


   
	
	
	From:  Susan Scott                           01/04/2000 11:12 AM
	

To: Drew Fossum@ENRON
cc:  

Subject: More on El Paso Protest of ENA Purchased Capacity

P.S. If it's OK with you I will plan to attend the Energy Seminar on Feb. 
10-11 (see 2d half of Lorna's e-mail)
---------------------- Forwarded by Susan Scott/ET&S/Enron on 01/04/2000 
11:12 AM ---------------------------


Lorna Brennan
01/04/2000 10:25 AM
To: Margaret Carson/Corp/Enron@ENRON, Rita Hartfield/Corp/Enron@ENRON, Rockey 
Storie/ET&S/Enron@ENRON, Stephanie Miller/ET&S/Enron@ENRON, Kent 
Miller/ET&S/Enron@ENRON, John Dushinske/ET&S/Enron@ENRON, Dave 
Neubauer/ET&S/Enron@ENRON, Mike McGowan/ET&S/Enron@ENRON, Steven 
Harris/ET&S/Enron@ENRON, Lindy Donoho/ET&S/Enron@ENRON, Jeffery 
Fawcett/ET&S/Enron@ENRON, Lorraine Lindberg/ET&S/Enron@ENRON, Kevin 
Hyatt/ET&S/Enron@Enron, Christine Stokes/ET&S/Enron@ENRON, Lee 
Huber/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON
cc:  

Subject: More on El Paso Protest of ENA Purchased Capacity



Marathon and Phillips Join Protest

    Two more shippers have joined Amoco and Burlington Resources in their
joint protest against El Paso?s decision to sell to Enron 1.2 Bcf of excess
capacity from the San Juan Basin to California. Marathon and Phillips have
joined in the protest, attacking the entire deal as anti-competitive. The
protesters hope FERC will force El Paso to begin again with capacity
assignments. Amoco and Burlington had already protested the deal two weeks
ago at FERC, when they claimed the sale would violate El Paso?s rate case
settlement and tariff. The shippers argue that El Paso was trying to sell
part of that primary firm capacity at delivery points other than
PG&E/Topock), which the settlement prohibits. The settlement was intended to
protect PG&E and allow it to access service. If this capacity is delivered at
other points such as SoCal/Topock, it could add to the glut at that point,
the protesters argued. El Paso and Enron stand to gain if the basis
differential between the San Juan Basin and California remains large.
Marathon and Phillips say that Enron and El Paso can manipulate that basis
differential because between them and their affiliates they control all the
excess capacity from the San Juan Basin to California.
______________________________________________________________________
Energy Seminars
New 2000 Dates!

San Francisco
February 10-11

Miami Beach
February 29-March 1

Houston
 March 14-15
Stay after for the Houston Energy Expo!

Denver
April 12-13
Come early for GasMart/Power 2000!

Houston
 May 9-10

Other seminars include:
 *  Gas Contracts from A to Z: Level 100 & 202
 *  Natural Gas
 *  Electricity 101
 *  Retail Energy Marketing 101
 *  Gas Processing Contracts & Negotiations
 *  Basis Trading & Hedging in Electric Power
 *  Basis Trading & Hedging with Natural Gas
 *  Petroleum Products Hedging & Risk Management
 *  And more

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m</A>
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______________________________________________________________________

Speculators Reduce Long Ratio

    Speculators have reduced the size of their bets on rising NYMEX crude oil
futures during the two weeks ending last year. Speculator long positions now
outnumber short positions by 1.4 to 1 compared with a ratio of 2.9 to 1 two
weeks earlier and 3.8 to 1 four weeks earlier. Prices peaked at a
post-Gulf-War high of $27.15 a barrel November 22nd and ended the year at
$25.60. Long positions in crude oil futures on the NYMEX held by hedge funds
and large speculators were 44,233 on December 28th, little changed from
44,693 on December 14th, according to the CFTC. Speculator short positions
doubled, though, to 31,868 from 15,364. Speculators also became less bullish
about both gasoline and heating oil as their short positions increased much
more than the long positions did during the two-week period. The ratio of
longs to shorts in gasoline fell to about 3-to-2 from 20-to-1. For natural
gas, speculators increased their overall bet that gas prices would fall. They
had placed bets for rising gas prices from April until mid-November, when a
lack of severe cold weather demand pulled prices down from a two-year high.
The following table shows the changes in speculator positions for crude oil,
heating oil, gasoline and natural gas futures.

Contract    Date    Long            Short       L - S
Crude       12/28   44,233          31,868      12,365
Crude       12/14   44,693          15,364      29,329
HO          12/28   13,632          11,146       2,486
HO          12/14   9,717           4,372        5,345
Gasoline    12/28   13,115      7,950        5,165
Gasoline    12/14   11,908        585           11,323
NG          12/28   14,879        24,355        (9,476)
NG          12/14   12,779        19,925       (7,146)
_____________________________________________________________

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______________________________________________________________________

Statoil Sells E&P Business to Equitable

    Equitable Resources, has acquired Statoil Energy?s Appalachian Basin Gas
Exploration and Production subsidiaries, Eastern States Exploration Company
and Eastern States Oil and Gas for $630 million. The transaction is expected
to close in February. The sale includes natural gas reserves totaling
approximately 1.1 Tcf, 6,500 production wells, and 4,000 miles of pipeline
network in Kentucky, West Virginia, Pennsylvania and Ohio. Sale of the
exploration and production business is the first step in The Statoil Group?s
overall plan of complete divestment of Statoil Energy. Statoil Energy?s
remaining businesses, power generation, energy marketing and trading,  will
be offered for sale in a separate process starting later this month. The
divestment plan is part of Statoil?s overall restructuring program to
concentrate on its core business activities: exploration and production in
Norway and other selected areas of the world; the European natural gas and
energy business; crude oil trading, refining and marketing; and
petrochemicals. Equitable?s market capitalization is $1.1 billion.
______________________________________________________________________

TAGE
The Austin Group Energy
Executive Search Consultants

pj@austingrp.com -  <A HREF="http://www.austingrp.com">www.austingrp.com</A>
Phone (281) 497-8595  -   Fax (281) 597-0099
______________________________________________________________________

EPRI Launches Customized Technical Support Services Subsidiary

   A new subsidiary of the Electric Power Research Institute will offer
customized technical support services to both members and non-members of its
research program. EPRIsolutions is a for-profit subsidiary created to hasten
the application of EPRI technologies already developed through decades of
collaborative research. EPRIsolutions will work directly with our customers
to select, install and support the EPRI technologies most suitable for their
particular needs. Many of the services offered will be performed by the staff
of EPRI?s Technology Application Centers located throughout the US. For
example, the Engineering and Test Centers in Lenox, Mass. and Haslet, Tex.
can provide audits of utility power delivery systems to identify weaknesses
before they lead to outages. The Maintenance and Diagnostics Center in
Charlotte, N.C. can help customers save on the cost of operating and
maintaining their fossil-fired power plants. As an example of how such
integrated services will be offered, EPRIsolutions can help customers adapt
and install the powerful, sophisticated software packages now available for
load forecasting, environmental risk assessment, and retail market
management. In some cases, EPRIsolutions will go one step further by acting
as an application service provider for companies that want to outsource
data-intensive operations. The first such ASP activity will be on-line
monitoring and diagnosis of water chemistry for several nuclear power plants.
EPRIsolutions is being formed through the merger of two existing
subsidiaries, EPRICSG and EPRIGEN, which were created to allow EPRI to
conduct proprietary R&D on behalf of individual funders, who would retain
rights to the intellectual property involved. In addition to continuing this
activity, EPRIsolutions takes on the function of providing customized
technology application and consulting services. Such private-benefit work
lies beyond the scope of EPRI's tax-exempt, collaborative research mission
and thus requires the use of a taxable subsidiary.
______________________________________________________________________

HEAD?S UP? PRICES DOWN!

    Natural gas prices have fallen to $2.40/MMBtu from $3.20/MMBtu just last
month. Storage injections still outweigh storage withdrawals. Where will
prices go? Depends on the weather. If it is warm in Houston and New York City
over the Thanksgiving holidays, will prices continue to head south? Under
those conditions, they have since 1993. Call it ?Rader?s Stupid Frozen Turkey
Theory? or call it storage fundamentals, but be prepared in case this silly
theory comes true one more year. For an in-depth, wellhead to burnertip study
of the natural gas industry, following is the winter schedule for the
original Natural Gas 101? training courses. Or call to set up an in-house
course at your convenience.

NATURAL GAS 1010 Schedule
                            2nd Week Jan - Houston, TX
                            Early Feb -         Call for Exact dates
                            Early Mar -         Houston, TX
                            April 19 -          New Orleans, LA
                                            Speaking at EEI National Accounts

    Natural Gas 101 is a registered trademark of Rader Energy Consultants.
Contact: Linda K. Rader, Rader Energy Consultants
P.O. Box 27391, Houston, TX 77227-7391
(713) 621-0808 or (713) 993-9325, ext. 161
natgas101@att.net
______________________________________________________________________

Oxy and EOG Swap Properties

    Occidental Petroleum and EOG Resources have exchanged oil and natural gas
fields to cut costs and boost production. Oxy received fields in California
that produce about 12 MMcf per day and mineral rights to more than 700,000
acres of land in the state. It also received properties in the western Gulf
that produce 26 MMcfe per day, adjacent to fields Oxy already owns. EOG
received properties in eastern Texas that are next to fields it owns and
which produce 33 MMcf per day and 3,000 barrels of oil a day. It also
acquired exploration rights on 312,000 acres in the Oklahoma panhandle.
_____________________________________________________________________

     Houston Energy Expo              GasMart/Power2000

Are you planning to attend the Houston Energy Expo or GasMart/Power2000?
Today?s hot issues: Deregulation, Gridlock, Gas Supply & Power Demand,
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experiences, transformations and integrated marketing solutions for your next
tradeshow.
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Mail to: bsells@o-group.com
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For more information regarding the Houston Energy Expo,
please visit the NESA website at <A HREF="http://www.nesanet.org">www.nesanet.
org</A>
For more information about attending, exhibiting, advertising, or sponsorship
at GasMart/Power2000, please visit our website at <A
HREF="http://www.gasmart.com">www.gasmart.com</A>
______________________________________________________________________

Calpine Buys Reserves from Vintage

     Calpine has acquired 90 Bcf of natural gas reserves from Vintage
Petroleum for $71.5 million, becoming the largest gas producer in
California?s Sacramento Valley. Calpine bought the remaining 58% interest in
the Rio Vista field that it did not already own, along with some exploration
rights. It received the 42%  stake when it acquired Sheridan Energy last
November for $128 million. Calpine plans to purchasing natural gas fields and
pipelines so it can provide fuel for its natural gas powered generators at
lower costs. Calpine plans to expand its electric generation businesses in
California, Texas, Arizona and Nevada along with the Southeast and Northeast.
It operates power plants that can generate 3,400 MW.
.

Callon Natural Gas Blowout

    Callon Petroleum had a natural gas blowout while drilling a test well in
the Gulf of Mexico and a fire is burning from a portion of the well. There
were no injuries at the  at South Marsh Island Block 261 well, about 60 miles
south of Lafayette, Louisiana. The fire is burning from a portion of the well
casing about 20 feet above sea level. Wild Well Control, a well-blowout
specialty company, is making preparations to bring the well under control.

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Financial Summary
The TSE 300 rose 7.68 points to 8413.75
The CRB Index is 204.27
The US Dollar retreated 1.65 points to 100..29
The Dow lost 140.23 points to 11356.89
The S&P 500 decreased 14.08 points to 1455.17
The Nasdaq was up 61.40 points to 4130.71
February NYMEX Crude Oil is 25.60
Canadian-U.S. Exchange fell .0074 to 1.4433

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