Subject: "El Paso".

Body: Here is the Commission's basic policy on reverse open seasons. I've asked Randy Rich to look into the other aspects of your questions, which we'll discuss shortly. The Commission has a two-step process for determining whether the market finds an expansion project economically viable. The first step, which occurs prior to the certificate application, is for the pipeline to conduct an open season in which existing customers are given an opportunity to permanently relinquish their capacity. This first step ensures that a pipeline will not expand capacity if the demand for that capacity can be filled by existing shippers relinquishing their capacity. The second step is that the expansion shippers must be willing to purchase capacity at a rate that pays the full costs of the project, without subsidy from existing shippers through rolled-in pricing. The reverse open season requirement (i.e., the requirement that a pipeline give customers the opportunity to turn back capacity) is established Commission policy. It was stated in the Commission's Pricing Policy for New and Existing Facilities Constructed by Interstate Natural Gas Pipelines, 71 FERC P61,241 at p. 61,917 (1995), reh'g denied, 75 FERC P61,105, and later reiterated in Certification on New interstate Natural Gas Pipeline Facilities (Certificate Policy Statement), 88 FERC P61,227 (1999), order clarifying statement of policy, 90 FERC P61,128, order further clarifying statement of policy, 92 FERC P61,094 (2000). My research has indicated that the Commission has provided few specifics on how a reverse open season is to be conducted. This probably allows pipelines considerable discretion in how they conduct their solicitations of turnback. General Commission policy would probably require only that shippers be given adequate notice of and opportunity to respond to the reverse open season. If the procedure used by El Paso for soliciting turnback becomes an issue, please let me know and let's discuss it. I'll be up in a few minutes for our call to Randy.

Subject: "ISDA Master Agreement with Enron North America Corp.".

Body: Dee: I am trying to hear from credit on about four issues, namely, the legal entity, need for First Union Corp. guaranty (due to the availability of financials), haircut on bonds and Specified Conditions. I would then propose preparation of a blackline to squeeze out the remaining issues. If I hear from credit tomorrow (and I'm pushing), I could have the blackline by Wednesday and we could talk. Hopefully, we'd be done by this week. Hope this works. Regards.

Subject: "DEC physical".

Body: We will hold off transferring any physical positions desk to desk until the end of bidweek. After NX1, we will transfer positions at a daily EOL Index mid price. Please monitor my book and others to make certain DEC deals are not being transferred prior to NX1 at an IF monthly or GD daily mid price. Thanks,

Subject: "Critical,CAPACITY CONSTRAINT,20020624,COLUMBIA GULF,007854581,East Lateral Line 300 - Line Lowering Project".

Body:
COLUMBIA GULF TRANSMISSION COMPANY NOTICE TO ALL INTERESTED PARTIES JUNE 21, 2002 Re: East Lateral Line 300 - Line Lowering Project Notice ID: 3839 5 - NO RESPONSE REQUIRED Columbia Gulf Transmission (CGT) will be performing a line lowering project on a portion of its East Lateral Line 300 beginning on June 24, 2002. This project is expected to take seven days to complete. The only location to be impacted by this project is 4119 - AEP/Equitable Storage. This location is impacted because it is solely connected to Line 300. While this work is being performed, CGT will be unable to accept nominations for delivery to or receipt from this location. A revised notice will be posted once the work has been completed and CGT is able to resume accepting nominations for this location.