Phillips Petroleum Company and Enron Corporation.; Consent Agreement With Analysis to Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 951-0037]

Phillips Petroleum Company and Enron Corporation.; Consent

Agreement With Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Consent agreement.

-----------------------------------------------------------------------

SUMMARY: In settlement of alleged violations of federal law prohibiting

unfair acts and practices and unfair methods of competition, this

consent agreement, accepted subject to final Commission approval, would

require the Houston, Texas-based Enron Corporation not to sell 830

miles of natural gas pipe and related assets within the Texas and

Oklahoma Panhandle region to the Bartlesville, Oklahoma-based Phillips

Petroleum Company.

DATES: Comments must be received on or before November 13, 1995.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Ronald B. Rowe, Bureau of Competition, Federal Trade Commission, S-

2602, 6th Street & Pennsylvania Ave., NW., Washington, DC 20580, (202)

326-2610.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of

the Commission's Rules of Practice (16 CFR 2.34), notice is hereby

given that the following consent agreement containing a consent order

to cease and desist, having been filed with and accepted, subject to

final approval.

The Federal Trade Commission (``Commission''), having initiated an

investigation of the proposed acquisition by Phillips Petroleum Company

(``Phillips''), through its subsidiary GPM Gas Corporation (``GPM''),

of the outstanding voting securities of Enron Anadarko Gathering

Company and Transwestern Anadarko Gathering Company, two subsidiaries

of Enron Corp. (``Enron''), that will own certain gas gathering assets

currently owned by Transwestern Pipeline Company (``Transwestern'') and

Northern Natural Gas Company (``Northern Natural''), two other

subsidiaries of Enron, and it now appearing that Enron and Phillips,

hereinafter sometimes referred to as ``Proposed Respondents,'' are

willing to enter into an agreement containing an Order to cease and

desist engaging in certain activities, and providing for other relief:

It is hereby agreed by and between Proposed Respondents, by their

duly authorized officers and attorneys, and counsel for the Commission

that:

1. Proposed Respondent Phillips is a corporation organized,

existing, and doing business under and by virtue of the laws of the

State of Delaware, with its office and principal place of business at

Phillips Building, Bartlesville, Oklahoma 74004.

2. Proposed Respondent Enron is a corporation organized, existing,

and doing business under and by virtue of the laws of the State of

Delaware, with its office and principal place of business at 1400 Smith

Street, Houston, Texas 77002.

3. Proposed Respondents admit all the jurisdictional facts set

forth in the draft complaint.

4. Proposed Respondents waive:

a. any further procedural steps;

b. the requirement that the Commission's decision contain a

statement of findings of fact and conclusions of law;

[[Page 47377]]

c. all rights to seek judicial review or otherwise to challenge or

contest the validity of the Order entered pursuant to this agreement;

and

d. any claim under the Equal Access to Justice Act.

5. This agreement shall not become part of the public record of the

proceeding unless and until it is accepted by the Commission. If the

agreement is accepted by the Commission it, together with the draft of

complaint contemplated thereby, will be placed on the public record for

a period of sixty (60) days and information in respect thereto publicly

released. The Commission thereafter may either withdraw its acceptance

of this agreement and so notify the Proposed Respondents, in which

event it will take such action as it may consider appropriate, or issue

and serve its complaint (in such form as the circumstances may require)

and decision, in disposition of the proceeding.

6. This agreement is for settlement purposes only and does not

constitute an admission by Proposed Respondents that the law has been

violated as alleged in the draft of complaint, or that the facts as

alleged in the draft complaint, other than jurisdictional facts, are

true.

7. This agreement contemplates that, if it is accepted by the

Commission, and if such acceptance is not subsequently withdrawn by the

Commission pursuant to the provisions of Sec. 2.34 of the Commission's

Rules, the Commission may, without further notice to the Proposed

Respondents, (1) issue its complaint corresponding in form and

substance with the draft of complaint and its decision containing the

following Order to cease and desist in disposition of the proceeding

and (2) make information public with respect thereto. When so entered,

the Order to cease and desist shall have the same force and effect and

may be altered, modified or set aside in the same manner and within the

same time provided by statute for other orders. The Order shall become

final upon service. Delivery by the U.S. Postal Service of the

complaint and decision containing the agreed-to Order to Proposed

Respondents' addresses as stated in this agreement shall constitute

service. Proposed Respondents waive any right they may have to any

other manner of service. The complaint may be used in construing the

terms of the Order, and no agreement, understanding, representation, or

interpretation not contained in the Order or the agreement may be used

to vary or contradict the terms of the Order.

8. Proposed Respondents have read the proposed complaint and Order

contemplated hereby. Proposed Respondents understand that once the

Order has been issued, they will be required to file one or more

compliance reports showing that they have fully complied with the

Order. Proposed Respondents further understand that they may be liable

for civil penalties in the amount provided by law for each violation of

the Order after it becomes final.

Order

I

It is ordered that, as used in this Order, the following

definitions shall apply:

A. ``Phillips'' means Phillips Petroleum Company, its directors,

officers, employees, agents, and representatives, predecessors,

successors, and assigns, its subsidiaries, divisions, groups, and

affiliates controlled by Phillips, and the respective directors,

officers, employees, agents, representatives, successors, and assigns

of each.

B. ``Enron'' means Enron Corp., its directors, officers, employees,

agents, and representatives, predecessors, successors, and assigns, its

subsidiaries, divisions, groups, and affiliates controlled by Enron,

and the respective directors, officers, employees, agents,

representatives, successors, and assigns of each.

C. ``Respondent'' or ``Respondents'' means Phillips and Enron,

collectively and individually.

D. ``Maxus'' means Maxus Energy Corporation, its predecessors,

successors, and assigns, subsidiaries, divisions, and groups, and

affiliates controlled by Maxus Energy Corporation.

E. The ``Acquisition'' means the proposed acquisition by Phillips

of the outstanding voting securities of Enron Anadarko Gathering

Company and Transwestern Anadarko Gathering Company, which will own

certain gas gathering assets currently owned by Transwestern Pipeline

Company and Northern Natural Gas Company, two subsidiaries of Enron,

pursuant to the stock purchase agreements executed on November 15,

1994, by Phillips and Enron as subsequently modified and amended.

F. ``Gas gathering'' means pipeline transportation, for oneself or

other persons, of natural gas over any part or all of the distance

between a well and a gas transmission pipeline or gas processing plant.

G. ``Person'' means any natural person, partnership, corporation,

company, association, trust, joint venture or other business or legal

entity, including any governmental agency.

H. ``Related Person'' means a person controlled by, controlling, or

under the common control with, another person.

I. ``Relevant Geographic Area'' means the Texas counties of

Hansford, Ochiltree, and Lipscomb and all portions of Beaver County,

Oklahoma, within ten miles of the Texas border.

J. ``Schedule A assets'' means the whole and any part of the assets

listed in Schedule A of this Order (including, but not limited to, the

assets listed in annex 1 and annex 2).

K. ``Commission'' means the Federal Trade Commission.

II

It is further ordered that Enron shall not sell, transfer, or

otherwise convey, directly or indirectly, the Schedule A assets, or any

stock, share capital, equity, or other interest in any person

controlling the Schedule A assets, to Phillips in connection with the

Acquisition; and, within thirty (30) days after this Order becomes

final, Enron shall provide notice of the requirements of this Order to

the Federal Energy Regulatory Commission.

III

It is further ordered that Phillips shall not acquire, directly or

indirectly, any stock, share capital, equity, or other interest in any

person controlling the Schedule A assets in connection with the

Acquisition.

IV

It is further ordered that, for a period of ten (10) years from the

date this Order becomes final, Phillips shall not, without prior

notification to the Commission, directly or indirectly:

A. Acquire the Schedule A assets;

B. Acquire any stock, share capital, equity, or other interest in

any person engaged in gas gathering within the Relevant Geographic Area

at any time within the two years preceding such acquisition, provided,

however, that an acquisition of securities will be exempt from the

requirements of this paragraph (IV.B) if after the acquisition Phillips

will hold cumulatively no more than two (2) percent of the outstanding

shares of any class of security of such person; and provided further,

that this Paragraph (IV.B) shall not apply to the acquisition of any

interest in a person that is not at the time of the acquisition engaged

in gas gathering within the Relevant Geographic Area due to the sale

within the preceding two years of all assets used for gas gathering

within the Relevant Geographic Area to another

[[Page 47378]]

party who intended to operate said assets for gas gathering within the

Relevant Geographic Area; or

C. Enter into any agreements or other arrangements with any person

or with two or more related persons to obtain, within any 18 month

period, direct or indirect ownership, management, or control of more

than five miles of pipeline previously used for gas gathering and

suitable for use for gas gathering within the Relevant Geographic Area.

V

It is further ordered that, for a period of ten (10) years from the

date this Order becomes final, Enron shall not, without prior

notification to the Commission, directly or indirectly:

A. Transfer Schedule A assets to Phillips or Maxus;

B. Transfer any stock, share capital, equity, or other interest in

any entity controlling the Schedule A assets to Phillips or Maxus; or

C. Enter into any agreement or other arrangement to transfer direct

or indirect ownership, management, or control of any of the Schedule A

assets to Phillips or Maxus.

VI

It is furthered ordered that the prior notifications required by

Paragraphs IV and V of this Order shall be given on the Notification

and Report Form set forth in the Appendix to Part 803 of Title 16 of

the Code of Federal Regulations as amended (hereinafter referred to as

``the Notification''), and shall be prepared and transmitted in

accordance with the requirements of that part, except that no filing

fee will be required for any such notification, notification shall be

filed with the Secretary of the Commission, notification need not be

made to the United States Department of Justice, and notification is

required only of Respondents and not of any other party to the

transaction. In lieu of furnishing (1) documents filed with the

Securities and Exchange Commission, (2) annual reports, (3) annual

audit reports, (4) regularly prepared balance sheets, or (5) Standard

Industrial Code (SIC) information in response to certain items in the

Appendix to Part 803 of Title 16 of the Code of Federal Regulations,

Phillips shall provide a map showing the location of the pipeline whose

acquisition is proposed and other pipelines used for gas gathering in

the Relevant Geographic Area and a statement showing the quantity of

gas that flowed through pipeline whose acquisition is proposed in the

previous 12 month period. Respondents shall provide the Notification to

the Commission at least thirty days prior to consummating any such

transaction (hereinafter referred to as the ``first waiting period''),

If, within the first waiting period, representatives of the Commission

make a written request for additional information, Respondents shall

not consummate the transaction until twenty days after substantially

complying with such request for additional information. Early

termination of the waiting periods in this paragraph may be requested

and, where appropriate, granted by letter from the Bureau of

Competition.

Provided, however, that prior notification shall not be required by

Paragraphs IV and V of this Order for a transaction for which

notification is required to be made, and has been made, pursuant to

Section 7A of the Clayton Act, 15 U.S.C. Sec. 18a.

VII

It is further ordered that:

A. Within sixty (60) days after the date this Order becomes final,

each Respondent shall file a verified written report with the

Commission setting forth in detail the manner and form in which it has

complied and is complying with this Order; and

B. One (i) year from the date this Order becomes final, annually

for the next nine (9) years on the anniversary of the date this Order

becomes final, and at such other times as the Commission may require,

each Respondent shall file a verified written report with the

Commission setting forth in detail the manner and form in which it has

complied and is complying with this Order. Provided, however, that if

Enron sells all of the Schedule A assets, it will no longer be required

to file any further written reports with the Commission.

VIII

It is further ordered that each Respondent shall notify the

Commission at least thirty (30) days prior to any proposed change in

such Respondent such as dissolution, assignment, sale resulting in the

emergence of a successor corporation, or the creation or dissolution of

subsidiaries or any other change that may affect compliance obligations

arising out of the Order.

IX

It is further ordered that, for the purpose of determining or

securing compliance with this Order, and subject to any legally

recognized privilege, upon written request and on reasonable notice to

such Respondent, each Respondent shall permit any duly authorized

representative of the Commission:

A. Access, during office hours and in the presence of counsel, to

inspect and copy all books, ledgers, accounts, correspondence,

memoranda and other records and documents in the possession or under

the control of such Respondent relating to any matters contained in

this Order; and

B. Without restraint or interference from it, to interview

officers, directors, or employees of such Respondent, who may have

counsel present, relating to any matters contained in this order.

Signed this ________ day of ________________, 19______.

Schedule A

Transwestern System 3--Catesby/Ivanhoe

Beaver County, OK

Ellis County, OK

Assets: All Transwestern-owned facilities located upstream of the

discharge side of the Catesby Compressor unit. Includes approximately

45.5 miles of pipe and the Catesby compressor #745, 422 horsepower.

Material assets are listed in Annex 1 for Transwestern system 3.

Transwestern System 4--Frass Como

Lipscomb County, TX

Beaver County, OK

Assets: All Transwestern-owned facilities located upstream of, but

not including, the side/hot-tap valve that connects the Frass Como

Lateral to the 12 inch Lipscomb-Mocaine Lateral, including the Frass

Como compressor station. Includes approximately 55.1 miles of pipe.

Material assets are listed in Annex 1 for Transwestern system 4.

Transwestern System 5--Follett

Lipscomb County, TX

Assets: All Transwestern-owned facilities located upstream of, but

not including, the side/hot-tap valve that connects the 4 inch Follett

Lateral to the 12 inch Lipscomb-Mocaine Lateral. Includes approximately

8.3 miles of pipe. Material assets are listed in Annex 1 for

Transwestern system 5.

Transwestern System 7--Kiowa Creek

Lipscomb County, TX

Assets: All Transwestern-owned facilities located upstream of, but

not including, the side/hot-tap valve that connects the 6 inch Kiowa

Creek Lateral and the 8 inch Kiowa Creek Loop to the 12 inch Lipscomb-

Mocaine Lateral, including the Kiowa Creek #2 compressor station.

Includes approximately 77 miles of pipe and three compressor units:

Kiowa Creek #2 Compressor #865, 1,078 horsepower; Kiowa Creek #1

Compressor #828, 1,078

[[Page 47379]]

horsepower; and E. Lipscomb Compressor #858, 531 horsepower. Material

assets are listed in Annex 1 for Transwestern system 7.

Transwestern System 8--Wolf Creek

Lipscomb County, TX

Ellis County, OK

Assets: All Transwestern-owned facilities located upstream of, but

not including, the side/hot-tap valve that connects the 6 inch Wolf

Creek Lateral to the 12 inch Lipscomb-Mocaine Lateral. Includes

approximately 45.2 miles of pipe and the Wolf Creek compressors #755

and #853, 1,470 combined horsepower. Material assets are listed in

Annex 1 for Transwestern system 8.

Transwestern System 13--Waka/Perryton

Ochiltree County, TX

Assets: All Transwestern-owned facilities located upstream of and

including the pig receiver for the 8 inch Perryton lateral, located on

the upstream side of and to the NE of the Waka compressor station.

Includes approximately 77.8 miles of pipe and the Perryton Transwestern

compressor #827, 779 horsepower. Material assets are listed in Annex 1

for Transwestern system 13.

Transwestern System 14--Gray rock

Ochiltree County, TX

Lipscomb County, TX

Assets: All Transwestern-owned facilities located upstream of, but

not including, the 6 inch pig launcher on the discharge side of the

Gray Rock compressor station. Includes approximately 43.3 miles of pipe

and the Gray Rock compressor #826, 810 horsepower. Material assets are

listed in Annex 1 for Transwestern system 14.

Transwestern System 20--Brillhart

Hansford County, TX

Assets: All Transwestern-owned facilities located upstream of, but

not including, the side/hot-tap valve that connects the 8 inch

Brillhart Lateral to the 10 inch Cactus-Hugoton Lateral. Includes

approximately 78.5 miles of pipe and two compressors: Brillhart #748,

708 horsepower; and Brillhart #796, 785 horsepower. Material assets are

listed in Annex 1 for Transwestern system 20.

Transwestern System 21--John Creek

Hansford County, TX

Ochiltree County, TX

Hutchinson County, TX

Roberts County, TX

Assets: All Transwestern-owned facilities located upstream of, but

not including, the side/hot-tap valve that connects the 6 inch John

Creek Lateral to the 12 inch Cactus-Hugoton Lateral. Includes

approximately 31 miles of pipe and the John Creek compressor #747, 537

horsepower. Material assets are listed in Annex 1 for Transwestern

system 21.

Northern Natural System 35--Spearman System--North

Hansford County, TX

Assets: The following four sections: (1) Approximately 6.3 miles of

6 inch and 2.0 miles of 4 inch Northern-owned gathering lines, upstream

of where the 6 inch TG385 connects to the 8 inch TG24001 in the

northwest quarter of Section 42, Block 1, Washington County RR Survey.

(2) Approximately 6.5 miles of 4 inch Northern-owned gathering lines,

upstream of the side valve on the 10 inch TG24001 in the northeast

quarter of Section 30, Block 1, Cherokee Iron Furnace CO Survey. (3)

The Buckner A1 wellhead facilities and approximately 3.4 miles of 4

inch Northern-owned gathering lines from the Buckner A1 well in Section

20 to the side valve on the 10 inch TG24001 in Section 27, Block 1,

Cherokee Iron Furnace Co Survey. (4) Approximately 3.5 miles of 8 inch,

3.8 miles of 6 inch, and 10 miles of 4 inch Northern-owned gathering

lines, upstream of where the 6 inch TG247 and the 8 inch TG246 connects

to the 12 inch TG24001 near the East Section Line of Section 7, Block

2, SA&MG RR Survey. Material assets are listed in Annex 2 for Northern

Natural system 35.

Northern Natural System 35--Spearman System--East

Hansford County, TX

Hutchinson County, TX

Roberts County, TX

Assets: The following two sections: (1) The Brainard Lateral

consisting of approximately 1.9 miles of 8 inch, 5.8 miles of 6 inch,

and 19.2 miles of 4 inch Northern-owned gathering lines, upstream of a

side valve where the 8 inch TG335 connects to the 26 inch TG24001 in

Section 8, Block H&GN Survey. (2) The East Leg consisting of

approximately 11.1 miles of 10 inch, 19.5 miles of 8 inch, 19.0 miles

of 6 inch, and 49.6 miles of 4 inch gathering lines, upstream of where

10 inch TG301 connects to the suction of Northern's Spearman Compressor

Station. Material assets are listed in Annex 2 for Northern Natural

system 35.

Northern Natural System 37--Fuller System

Hansford County, TX

Sherman County, TX

Hutchinson County, TX

Assets: The following two sections: (1) The Hansford County No. 1

System consisting of approximately one-half mile of 2 inch, 5 miles of

8 inch, 3 miles of 6 inch, and 11 miles of 4 inch gathering lines,

upstream of the suction of Northern's Hansford County No. 1 compressor

station. (2) The Hutchinson County No. 2 system consisting of

approximately 5 miles of 6 inch and 5 miles of 4 inch gathering lines,

upstream of the suction of Northern's Hutchinson County No. 2

compressor station. Material assets are listed in Annex 2 for Northern

Natural system 37.

Northern Natural System 79--Perryton System

Ochiltree County, TX

Beaver County, OK

Assets: The Northern-owned facilities upstream of the suction of

Northern's Perryton Compressor Station. The facilities consist of

approximately one quarter mile of 2 inch, 89 miles of 4 inch, 58 miles

of 6 inch, 23 miles of 8 inch, 4 miles of 10 inch, and 10 miles of 16

inch gathering lines. Material assets are listed in Annex 2 for

Northern Natural system 79.

Annex 1 to Schedule A

[Transwestern Gathering Company]

--------------------------------------------------------------------------------------------------------------------------------------------------------

Comp. H/ Pipe Pipe Pipe 2 Pipe 2

S Line seg Description WH Comp Line Meter P diameter length diameter length

--------------------------------------------------------------------------------------------------------------------------------------------------------

3..... CA-1............ 4'' SHEPHERD #1/L E MAYER #1 LAT.... ........ X ........ 0 0 6.6 31680. 0.0 0.00

3..... CA-1............ MTR STA SHL MAYER WL1............... X ........ ........ 42800 0 4.5 100. 0.0 0.00

[[Page 47380]]

3..... CA-1............ MTR STA SHL SHEPRD WL1.............. X ........ ........ 42810 0 4.5 100. 0.0 0.00

3..... CA-1-01......... IRWIN #1-20 WL LN................... X ........ ........ 41610 0 4.5 422. 0.0 0.00

3..... CA-1-01......... SHELL-TUBB #1-30 WL LN.............. X ........ ........ 41630 0 4.5 400. 0.0 0.00

3..... CA-1-01......... PEETOOM #1-29 WELL LINE............. X ........ ........ 41660 0 4.5 5280. 0.0 0.00

3..... CA-1-02......... SHELL-OHEARN #1-32 WELL............. X ........ ........ 41620 0 4.5 6864. 0.0 0.00

3..... CA-1-02......... SHELL-WHITE #1-31 WELL.............. X ........ ........ 41640 0 4.5 400. 0.0 0.00

3..... CA-1-03......... WHITE B #1-5 WELL LINE.............. X ........ ........ 42830 0 4.5 14256. 0.0 0.00

3..... CA-1-03......... PHIL-DRAKE #1-6 WEL LN.............. X ........ ........ 42840 0 4.5 106. 0.0 0.00

3..... CA-1-04......... PEARSON #1 4 LN & EQ................ X ........ ........ 41590 0 0.0 0. 0.0 0.00

3..... CA-1-04......... CONN KELLN 11-1..................... X ........ ........ 41750 0 0.0 0. 0.0 0.00

3..... CA-1-04......... SWENN #1 4 LN & EQ.................. X ........ ........ 42870 0 4.5 5808. 0.0 0.00

3..... CA-1-04......... MESA PETROLEUM CO--#1 PIERSALL...... X ........ ........ 43090 0 0.0 0. 0.0 0.00

3..... CA-1-05......... CONN SHELL--#2-31 WHITE............. X ........ ........ 41730 0 4.5 2600. 0.0 0.00

3..... CA-1-05......... CONN CNG-STATE UNIT #1.............. X ........ ........ 43210 0 0.0 0. 0.0 0.00

3..... CA-2............ CONNMEDALLION PETR-WHITE A#1&2...... X ........ ........ 41021 0 0.0 0. 0.0 0.00

3..... CA-2............ STATE #1-36......................... X ........ ........ 41690 0 0.0 0. 0.0 0.00

3..... CA-2............ WHITE A #1-1 WELL LN................ X ........ ........ 42820 0 4.5 53. 0.0 0.00

3..... VH-1............ 12'' IVANHOE & CATESBY LAT.......... ........ ........ X 0 0 12.7 34320. 0.0 0.00

3..... VH-1............ CONNMEWBOURNE OIL #1-24 WYNN........ X ........ ........ 41911 0 0.0 0. 0.0 0.00

3..... VH-1............ TW #745 IVANHOE/CATESBY COMP........ ........ X ........ 0 422 0.0 0. 0.0 0.00

3..... VH-1-01......... BERYL JET #1-14 WL LN............... X ........ ........ 42690 0 4.5 158. 0.0 0.00

3..... VH-1-04......... CONN BURKHART #1-15 BEDELL INOIN FL. X ........ ........ 41910 0 0.0 0. 0.0 0.00

3..... VH-2-01......... CONNMARLIN OIL #1 HALLIBURTON....... X ........ ........ 41740 0 4.5 2050. 0.0 0.00

3..... VH-2-01......... FOX #1 WL LN........................ X ........ ........ 41970 0 0.0 0. 0.0 0.00

3..... VH-2-01......... BOCKELMAN #1-17 WL LN............... X ........ ........ 42760 0 4.5 106. 0.0 0.00

3..... VH-2-02......... MTR STA UNION DYCHE WL.............. X ........ ........ 41020 0 4.5 4852. 0.0 0.00

3..... VH-2-03......... 4'' O'HARE W/KAISER FRANCIS- X ........ ........ 40301 0 0.0 0. 0.0 0.00

REDELSPERGR#1.

3..... VH-2-03......... OHAIR #1-40 TIN WL LN............... X ........ ........ 42770 0 4.5 5280. 0.0 0.00

3..... VH-2/3.......... 10'' CATESBY EXTENSION.............. ........ ........ X 0 0 10.7 44880. 0.0 0.00

3..... VH-3............ MCCLURE #1-13 WELL LINE............. X ........ ........ 41680 0 4.5 400. 0.0 0.00

3..... VH-3-01......... SUE HILL #1......................... X ........ ........ 41700 0 4.5 1750. 0.0 0.00

4..... FC-1............ CONN TEX OKG--#2 PINKARD ``B''...... X ........ ........ 38980 0 0.0 0. 0.0 0.00

4..... FC-1............ FRASS-COMO FLD TW #746.............. ........ X ........ 0 0 0.0 0. 0.0 0.00

4..... FC-1/2.......... 8'' COMO J FRASS FLD LAT............ ........ ........ X 0 0 8.6 52800. 0.0 0.00

4..... FC-2............ DAROVZET SALES MTR STA.............. X ........ ........ 20 0 0.0 0. 0.0 0.00

4..... FC-2-02......... MTR STA HUM-FRASS #B-1.............. X ........ ........ 3651 0 4.5 3980. 0.0 0.00

4..... FC-2-02......... MTR STA HBL-FRASS WL-1.............. X ........ ........ 3653 0 4.5 8220. 0.0 0.00

4..... FC-2-03......... CONN NAT GAS ANADARKO #1-26 DEPEW... X ........ ........ 43340 0 4.5 10500. 0.0 0.00

[[Page 47381]]

4..... FC-3............ 8'' COMO & FRASS FLD LAT............ ........ ........ X 0 0 8.6 25080. 0.0 0.00

4..... FC-3-01......... 4'' HOWARD/MAHAFFEY/MIER/ANDERSON... ........ ........ X 0 0 6.6 13200. 0.0 0.00

4..... FC-3-01......... MTR STA CSO VICKERS WL.............. X ........ ........ 42530 0 4.5 100. 0.0 0.00

4..... FC-3-2.......... PHILLIPS EXCHANGE 3 SIDE VLVS....... X ........ ........ 952 0 0.0 0. 0.0 0.00

4..... FC-5-02......... CONN FALCON-CLENNEY #1.............. X ........ ........ 40390 0 4.5 25. 0.0 0.00

4..... FC-5-02......... CONN FALCON-SCHUSTER #1............. X ........ ........ 40400 0 4.5 20600. 0.0 0.00

4..... FC-5-05......... CONN FALCON-CLENNEY #2.............. X ........ ........ 40430 0 4.5 400. 0.0 0.00

4..... FC-5-07......... CONN NAT GAS ANDRKO #1-2 DICK BVR... X ........ ........ 40460 0 4.5 8037. 2.3 136.00

4..... FC-5-08......... CONNMEWBOURNE #1 BARNES 14 BEAVER... X ........ ........ 40520 0 4.5 2540. 0.0 0.00

5..... FT-1............ LFR B&T-R #1 TO LIP-M............... ........ ........ X 0 0 4.5 29040. 0.0 0.00

5..... FT-1............ CONN SAM REGER #1................... X ........ ........ 36100 0 4.5 100. 0.0 0.00

5..... FT-1-01......... CONN COTTON #1 KRAFT................ X ........ ........ 37800 0 4.5 3600. 0.0 0.00

5..... FT-1-02......... FARM TAP MERLIN LAUBHAM............. X ........ ........ 3110 0 0.0 0. 0.0 0.00

5..... FT-1-02......... FARM TAP-RUSSELL SINER.............. X ........ ........ 3490 0 0.0 0. 0.0 0.00

5..... FT-1-03......... CONN JACK G JONES-#1 MASON.......... X ........ ........ 38030 0 0.0 0. 0.0 0.00

5..... FT-1-03......... CONN COTTON-#1 LAUBHAN.............. X ........ ........ 38480 0 4.5 9800. 0.0 0.00

5..... FT-2-04......... CONN LAUBHAN UNIT A #1.............. X ........ ........ 36220 0 4.5 50 0.0 0.00

7..... EL-1............ 4'' E. LIPSCOMB FLD LAT............. ........ ........ X 0 0 4.5 22176. 4.0 480.00

7..... EL-1............ LINE PARKER 1 4 IN.................. X ........ ........ 35710 0 4.5 272. 0.0 0.00

7..... EL-1............ LINE SHULTZ C-I 4 IN................ X ........ ........ 35790 0 4.5 272. 0.0 0.00

7..... EL-1............ EAST LIPS TW #858................... ........ X ........ 0 500 0.0 0. 0.0 0.0

7..... EL-1-01......... LINE TYSON A-1 4 IN................. X ........ ........ 35680 0 4.5 4646. 0.0 0.0

7..... EL-1-01......... LINE SHULTZ 2-5625 4 IN............. X ........ ........ 35760 0 4.5 4176. 0.0 0.00

7..... EL-1-02......... CONN HUMBLE-1 W M SCHULTZ UNIT...... X ........ ........ 35932 0 4.5 5280. 0.0 0.00

7..... EL-1-02......... CONN 1 SCHULTZ...................... X ........ ........ 35940 0 4.5 2200. 0.0 0.00

7..... KC-1............ 6'' LIBSCOMB F/PIPER #2 LIPSCOMB LAT ........ ........ X 0 0 6.6 13781. 0.0 0.00

7..... KC-1............ LINE PIPER 2 6 IN................... X ........ ........ 35730 0 4.5 272. 0.0 0.00

7..... KC-1............ LINE SHULTZ B-2 6 IN................ X ........ ........ 35740 0 4.5 272. 0.0 0.0

7..... KC-1............ KIOWA CREEK #1 TW #828.............. ........ X ........ 0 1100 0.0 0. 0.0 0.00

7..... KC-1-02......... 4'' LIPSCOMB F/YAUCK/DUKE/SHULTZ B.. ........ ........ X 0 0 4.5 12619. 0.0 0.00

7..... KC-1-02-01...... NATOMAS #1 YAUCK TW #855............ ........ X ........ 0 42 0.0 0. 0.0 0.00

7..... KC-1-03......... CONN SCRATH OIL-PIPER #689.......... X ........ ........ 9750 0 0.0 0. 0.0 0.00

7..... KC-1-03......... CONN SCARTH PETR-#601-1 PIPER....... X ........ ........ 38360 0 4.5 300. 0.0 0.00

7..... KC-1-03......... CONN SCARTH-PIPER 600-1............. X ........ ........ 38400 0 0.0 0. 0.0 0.00

7..... KC-1-03......... CONN SCARTH-PIPER 601-2............. X ........ ........ 38410 0 0.0 0. 0.0 0.00

7..... KC-1-03......... CONNMAY PETRO PIPER RNCH #1 ZIPSCO.. X ........ ........ 55120 0 0.0 0. 0.0 0.00

7..... KC-1-05......... MTR RUN-NEWBORURNE-SCHULTZ #1....... X ........ ........ 38160 0 2.3 30. 0.0 0.00

[[Page 47382]]

7..... KC-1-06......... CONN NAT GAS-ANADARKO #1-544 OWENS.. X ........ ........ 38890 0 4.5 2600. 0.0 0.00

7..... KC-1-06......... CONN EXXON-#7 OLA O PIPER........... X ........ ........ 38900 0 4.5 6000. 0.0 0.00

7..... KC-1-07......... CONNMAY PET-WM SCHULTZ #1........... X ........ ........ 55130 0 0.0 0. 0.0 0.00

7..... KC-1-08......... CONNMEWBOURNE #1 DUCE ``781''....... X ........ ........ 55230 0 4.5 2882. 2.3 83.00

7..... KC-1-08......... CONN MEWBOURNE #1 SCHULTZ ``761''... X ........ ........ 55240 0 4.5 873. 2.3 152.00

7..... KC-1/2/3........ 6'' KIOWA CREEK LAT................. ........ ........ X 0 0 6.6 66264. 0.0 0.00

7..... KC-1/2/3 / KC-3- EXT KIOWA CREEK T/LEAR PET 6'' LINE. ........ ........ X 0 0 6.6 27262. 6.6 151.00

5/6.

7..... KC-2............ CONN OLA #1......................... X ........ ........ 36384 0 6.0 1750. 0.0 0.00

7..... KC-2............ KIOWA CREEK STA#2-TW #865........... ........ X ........ 0 1050 0.0 0. 0.0 0.00

7..... KC-2-01......... MTR STA APAH LAURE WL1.............. X ........ ........ 36340 0 4.5 13200. 0.0 0.00

7..... KC-2-03......... CON BRADFORD FD CSG HD.............. X ........ ........ 36320 0 4.5 106. 0.0 0.00

7..... KC-2-03......... PURDOM #1 4LN & EQ.................. X ........ ........ 37190 0 4.5 422. 0.0 0.00

7..... KC-2-03......... CONN FALCON-PURDOM UNIT #1.......... X ........ ........ 38340 0 0.0 0. 0.0 0.00

7..... KC-2-04......... CONN COTTON PETR-1-A-PIPER.......... X ........ ........ 36720 0 4.0 1000. 0.0 0.00

7..... KC-2-206........ CONN COTTON PETR-1 BRADFORD ``B''... ........ ........ x 0 0 4.5 3100. 0.0 0.00

7..... KC-2-06......... CON UNAPACHE-BRADFOD #1............. X ........ ........ 36300 0 6.6 10560. 0.0 0.00

7..... KC-2-06......... CONN DIAMOND-#3 688 OLA 0 PIPER..... X ........ ........ 37741 0 4.5 4500 0.0 0.00

7..... KC-2-06......... CON COTTON-BRADFORD #2.............. X ........ ........ 38320 0 0.0 0. 0.0 0.00

7..... KC-2-07......... PAN PET HLTON #1 WL LN.............. X ........ ........ 36830 0 4.5 3000. 0.0 0.00

7..... KC-2-07......... CONN COTTON PETR-1 FAIR............. X ........ ........ 36880 0 4.5 4400. 0.0 0.00

7..... KC-2-10......... CON APACHE BRADFORD #3.............. X ........ ........ 33652 0 0.0 0. 0.0 0.00

7..... KC-2-10......... CONN COTTON-#4 OLA PIPER............ X ........ ........ 37720 0 0.0 0. 0.0 0.00

7..... KC-2-10......... CONNMEWBOURNE-BRADFORD #1........... X ........ ........ 38690 0 0.0 0. 0.0 0.00

7..... KC-2-12......... CONN COTTON #2 PIPER A.............. X ........ ........ 37790 0 4.5 900 0.0 0.00

7..... KC-2-13......... CONN COTTON PETROLEUM-1 PIPER....... X ........ ........ 36710 0 4.0 400. 0.0 0.00

7..... KC-2-13......... CONN COTTON PETR-1 PIPER ``B''...... X ........ ........ 36730 0 4.5 2900. 0.0 0.00

7..... KC-2-14......... CONNMEWBOURNE #2 BRADFORD........... X ........ ........ 36650 0 4.5 640. 0.0 0.00

7..... KC-3............ 6'' KIOWA CREEK LATERAL............. ........ ........ X 0 0 6.6 5500. 0.0 0.00

7..... KC-3............ CONN ARCO-#2 FRED LOESCH............ X ........ ........ 38700 0 4.5 900. 0.0 0.00

7..... KC-3-02......... CONN MEDALLION #1................... ........ ........ X 0 0 4.5 15840 0.0 0.00

7..... KC-3-02......... CONN SINCLAIR-LOESCH #1............. X ........ ........ 36032 0 4.5 1684. 0.0 0.00

7..... KC-3-02......... CONN FULTON SELL #4................. X ........ ........ 38886 0 0.0 0. 0.0 0.00

7..... KC-3-07......... CONN DIAMOND-OLA PIPER 1-691........ ........ ........ X 0 0 6.6 4300. 0.0 0.00

7..... KC-3-07......... CONN ARCO-#1 MARGARET L DIXON....... X ........ ........ 38810 0 4.5 600. 0.0 0.00

7..... KC-3-08......... CONN ARCO-# HALBROOK DAILY WELL..... X ........ ........ 38740 0 4.5 11000. 0.0 0.00

7..... KC-3-09......... CONN ARCO-#1PAINE BROS CO........... X ........ ........ 38871 0 4.5 6400. 0.0 0.00

[[Page 47383]]

7..... KC-3-10......... CONN ARCO-#1 FULTON-SELL............ X ........ ........ 388222 0 4.5 1500. 0.0 0.00

7..... KC-3-10......... CONN FULTON SELL #3................. X ........ ........ 38885 0 0.0 0. 0.0 0.00

7..... KC-3-11......... CONN AMOCO-#2 LILLIE M PETERSON..... X ........ ........ 33680 0 4.5 2000. 0.0 0.00

7..... KC-3-15......... CONN ARCD-SORENSON DIXON CENT POINT. X ........ X 55210 0 4.0 880. 0.0 0.00

7..... KC-3A........... 6'' KIOWA CREEK LAT................. ........ ........ X 0 0 2.3 280. 0.0 0.00

8..... SG-1............ TAP TO INTERNORTH MEIER #1 LIPSC.... X ........ ........ 16200 0 0.0 0. 0.0 0.00

8..... SG-1............ CONN JERNIGAN-BATTIN #1............. X ........ ........ 38280 0 0.0 0. 0.0 0.00

8..... SG-1-01......... CONN FILON EXPL--#1 FRITZ........... X ........ ........ 41340 0 4.5 5500. 0.0 0.00

8..... SG-1/2.......... 4'' W A MEIER #1& ANNA RUF #1 WELLS, ........ ........ X 0 0 4.5 21120. 0.0 0.00

TX.

8..... SG-2............ 4'' LAT TO W A MEIER #1 & ANNA RUF ........ ........ X 0 0 4.5 26400. 0.0 0.00

#1 WEL.

8..... WC-1............ PRICE 2 WOLF CK 4 IN................ X ........ 35660 0 0 4.5 272. 0.0 0.00

8..... WC-1............ WOLF CREEK TW #755 & 853............ ........ X ........ 0 1470 0.0 0. 0.0 0.00

8..... WC-1-01......... PRICE IB WOLF CK 4 IN............... X ........ ........ 35650 0 4.5 2635. 0.0 0.00

8..... WC-1-02......... CONN EXXON--#4 WILLIS D PRICE ''B''. X ........ ........ 38310 0 4.5 1800. 0.0 0.00

8..... WC-1-02......... CONN EXXON--#5 WILLIS D PRICE....... X ........ ........ 38440 0 4.5 200. 0.0 0.00

8..... WC-1/2/3........ 6'' WOLF CREEK LAT.................. ........ ........ X 0 0 6.6 79147. 0.0 0.00

8..... WC-2............ FARM TAP--MARY & ROBERT SQUIRES..... X ........ ........ 3460 0 0.0 0. 0.0 0.00

8..... WC-2............ R DOYLE 1-WOLF CK 415............... X ........ ........ 35630 0 4.5 272. 0.0 0.00

8..... WC-2............ PRICE I WOLF CK 4 IN................ X ........ ........ 35640 0 4.5 272. 0.0 0.00

8..... WC-2............ J DOYLE I-WOLF CK 4 IN.............. X ........ ........ 35770 0 0.0 0. 0.0 0.00

8..... WC-2............ CONNMEWBOURNE OIL CO--SQUIRE #3..... X ........ ........ 55540 0 4.5 2550. 0.0 0.00

8..... WC-2-01......... CONN HUMBLE-1 TYSON................. X ........ ........ 35970 0 4.5 6200. 0.0 0.00

8..... WC-2-02......... CONNMEWBOURNE #1 PRICE.............. X ........ ........ 38630 0 4.5 3500. 0.0 0.00

8..... WC-2-03......... CONN HUMBLE-W D PRICE #4............ X ........ ........ 35851 0 0.0 0. 0.0 0.00

8..... WC-3............ BROWN I-WOLF CRK 4 IN............... X ........ ........ 40200 0 4.5 272. 0.0 0.00

8..... WC-3-01......... CONN FILON-THORNTION TRUST #1....... X ........ ........ 40260 0 4.5 165. 0.0 0.00

8..... WC-3-02......... CONNMAPCO-LOIS BROWN #2-27.......... X ........ ........ 41460 0 0.0 0. 0.0 0.00

8..... WC-3-02......... CONNMAPCO-BROWN 1-26................ X ........ ........ 41470 0 0.0 0. 0.0 0.00

8..... WC-3-02......... CONNMAPCO-PIERCE #1-28.............. X ........ ........ 41480 0 0.0 0. 0.0 0.00

8..... WC-3-03......... SHERRILL OU 1#1 WL LN............... X ........ ........ 40250 0 4.5 6300. 0.0 0.00

8..... WC-3-05......... CONN BUNKER-WAYLAND #1-5............ X ........ ........ 40290 0 0.0 0. 0.0 0.00

8..... WC-3-06......... CONN 4'' JORDAN CENT DELIV PT #1.... ........ ........ X 0 0 0.0 0. 0.0 0.00

8..... WC-3-06......... CONNECT JORDAN O&G #1 CENTRAL DEL PT X ........ ........ 41510 0 4.5 20803. 0.0 0.00

8..... WC-3-07......... SHATTUCK OU-1 #3 WL LN.............. X ........ ........ 41520 0 4.5 4281. 0.0 0.00

8..... WC-4............ GIBBS #1-19 WELL LINE............... X ........ ........ 40230 0 4.5 9240. 0.0 0.00

[[Page 47384]]

13.... NP-1............ 6'' F/HAN #1, WITT #1, KERSHAW #1... ........ ........ X 0 0 6.6 29515 0.0 0.00

13.... NP-1-01......... INST TAP HOT-NEUFELD #1............. X ........ ........ 36430 0 0.0 0. 0.0 0.00

13.... NP-1-02......... CONN GARY GEORGE #1................. X ........ ........ 38965 0 0.0 0. 0.0 0.00

13.... NP-1-02......... CONN ANADARKO MARIE #1-62 WLDCT..... X ........ ........ 52190 0 0.0 0. 0.0 0.00

13.... NP-2............ MTR STA SH KERSHAW WL1.............. X ........ ........ 37000 0 4.5 18880. 0.0 0.00

13.... NP-2............ CONN MEWBOURNE SCHWULK #1........... X ........ ........ 53260 0 0.0 0. 0.0 0.00

13.... NP-2-02......... HAROLD D COURSON--#1-43 WAGGONER.... X ........ ........ 38130 0 4.5 20. 0.0 0.00

13.... NP-2-03......... CONN FALCON-WAGGONER #1-43.......... X ........ ........ 38080 0 4.5 1300. 0.0 0.00

13.... NP-2-03......... CONN FALCON-WAGGONER #1-43.......... X ........ ........ 38130 0 4.5 9600. 0.0 0.00

13.... NP-2-04......... CONN COURSON #1-42 MCGARROUGH....... X ........ ........ 38540 0 4.5 2200. 0.0 0.00

13.... NP-3............ CONN PHILCON--1 MAXWELL............. X ........ ........ 36940 0 4.5 15312. 0.0 0.00

13.... PE-1............ PSHIGODO I-PP LAT 4 IN.............. X ........ ........ 34910 0 4.5 272. 0.0 0.00

13.... PE-1-02......... CONN ANADARDO #1-661 DUDLEY......... X ........ ........ 38620 0 4.5 600. 0.0 0.00

13.... PE-1-03......... PHL-MC WLIB-8 PERY LAT.............. X ........ ........ 34900 0 4.5 2900. 0.0 0.00

13.... PE-1-03......... CONN COURSON OIL AND GAS #4-571 1ST. X ........ ........ 34911 0 0.0 0. 0.0 0.00

13.... PE-1-03......... CONN #1-571 1ST NATL TRUST-ACCT REC. X ........ ........ 38460 0 4.5 4400. 0.0 0.00

13.... PE-1-04......... LN FR RIDGMOR TO PSH L.............. X ........ ........ 34930 0 4.5 15840. 0.0 0.00

13.... PE-1-05......... CONN COURSON--#2-571 1ST NATL TRUST. X ........ ........ 38551 0 4.5 1600. 0.0 0.00

13.... PE-1-06......... CONN NAT GAS ANADARDO #1-64 CAMP.... X ........ ........ 38962 0 4.5 5400. 0.0 0.00

13.... PE-1-06......... CONN SANTA FE ENRGY #2-49 WFL AR.... X ........ ........ 52110 0 4.5 6172. 4.5 69.00

13.... PE-1-06......... CONN NAT GAS ANADARKO 1-46 RICHARDSN X ........ ........ 52150 0 4.0 7300. 0.0 0.00

13.... PE-1/2/3........ 6'' & 8'' N. PARRYTON ALT........... ........ ........ X 0 0 8.6 72072. 0.0 0.00

13.... PE-2............ LAND-EXCHANGE NN DUDE WILSON........ X ........ ........ 9170 6.6 0 650. 0.0 0.00

13.... PE-2............ HUM-PER WL 1-8 PERY LAT............. X ........ ........ 34610 0 4.5 272. 0.0 0.00

13.... PE-2............ HUM PER WL1-8 PERY LAT.............. X ........ ........ 34811 0 4.5 272. 0.0 0.00

13.... PE-2............ PERRYTON TW #827.................... ........ X ........ 0 785 0.0 0. 0.0 0.00

13.... PE-2-01......... WC HERNDON C #1 WL LN............... X ........ ........ 34750 0 4.5 264. 0.0 0.00

13.... PE-2-01......... W C HERNDON 1 U L WL LN............. X ........ ........ 37910 0 6.6 475. 0.0 0.00

13.... PE-2-01......... CONN HERNDON #1..................... X ........ ........ 37970 0 4.5 2650. 0.0 0.00

13.... PE-2-02......... 4'' F/DUDE WILSON GW5 #1 & WG4 #1... ........ ........ X 0 0 4.5 13200. 0.0 0.00

13.... PE-2-02......... JONES #2-750 WELL LINE.............. X ........ ........ 34740 0 4.5 317. 0.0 0.00

13.... PE-2-02......... JONE #1-750 WL LN................... X ........ ........ 34770 0 4.5 400. 0.0 0.00

13.... PE-2-03......... MTR STA HUM-D W WE GU4.............. X ........ ........ 34830 0 4.5 100. 0.0 0.00

13.... PE-2-03......... DUDE WILSON GU-4 #2 WL.............. X ........ ........ 37930 0 4.5 211. 0.0 0.00

13.... PE-2-04......... BRUHLMAN #1-17 WL LN................ X ........ ........ 34870 0 4.5 4752. 0.0 0.00

[[Page 47385]]

13.... PE-2-04......... CONN HORIZON #2-17 BRUHLMAN......... X ........ ........ 52080 0 4.5 3389. 2.3 98.00

13.... PE-2-05......... PSHIGODA B #1 4LN & EQ.............. ........ ........ X 0 0 4.5 15790. 0.0 0.00

13.... PE-2-05......... CONN EXXON CORP DUDE WILSON GU 7-3.. X ........ ........ 34711 0 0.0 ....... 0.0 0.00

13.... PE-2-05......... CONN EXXON CORP DUDE WILSON GU 5-4.. X ........ ........ 34731 0 0.0 0. 0.0 0.00

13.... PE-2-05......... CONN HD WILSON GU7 #7............... X ........ ........ 34950 0 4.5 53. 0.0 0.00

13.... PE-2-07......... 4'' LN ROGERS #3-DUDE WILSON GSG LAT X ........ X 0 0 6.6 10666. 0.0 0.00

13.... PE-2-07......... CONN EXXON-#2 DUDE WILSON UNIT #2... X ........ ........ 33080 0 4.5 800. 0.0 0.00

13.... PE-2-07......... D WLSN GU WL 2-DW LAT............... X ........ ........ 34800 0 4.5 272. 0.0 0.00

13.... PE-2-07......... ROGERS I-PP LAT 4 IN................ X ........ ........ 34820 0 4.5 4277. 0.0 0.00

13.... PE-2-07......... MTR STA HBL ROGERS WL 3............. X ........ ........ 34860 0 4.5 400. 0.0 0.00

13.... PE-2-09......... HBL D WILSON 5-Z WL LN.............. X ........ ........ 34791 0 4.5 400. 0.0 0.00

13.... PE-2-10......... CONN EXXON-DUDE WILSON #6........... X ........ ........ 38720 0 4.5 3000. 0.0 0.00

13.... PE-2-10......... CONN EXXON--#2 DUDE WILSON UNIT #7.. X ........ ........ 38760 0 4.5 600. 0.0 0.00

13.... PE-2-10......... CONN H&L OPER--#2 PSHIGODA.......... X ........ ........ 38850 0 4.5 1200. 0.0 0.00

13.... PE-2-11......... CONN EXXON-DUDE WILSON GAS UNIT 5-3. X ........ ........ 33460 0 4.5 1340. 0.0 0.00

13.... PE-2-12......... CONN EXXON--#2 DUDE WILSON UNIT #1.. X ........ ........ 38800 0 4.5 900. 0.0 0.00

13.... PE-2-13......... CONN EXXON--#3 DUDE WILSON UNIT #4.. X ........ ........ 38860 0 4.5 2135. 0.0 0.00

13.... PE-2-14......... CONN EXXON--#5 HELEN ROGERS......... X ........ ........ 33070 0 4.5 2400. 0.0 0.00

13.... PE-2-14......... DODSON #1-834 WL LN................. X ........ ........ 34890 0 0.0 0. 0.0 0.00

13.... PE-2-16......... CONN SAMSON RESOURCES DODSON #3 OCH. X ........ ........ 52121 0 4.5 738. 2.3 360.00

13.... PE-2-17......... W C HERNDON B #1-L WL LN............ X ........ ........ 37900 0 4.5 5808. 0.0 0.00

13.... PE-2-17......... CONN COURSON #2-662 HERNDON OCHL.... X ........ ........ 52160 0 0.0 0. 0.0 0.00

13.... PE-2-18......... CONN COURSON #1-747 ELDEN WAKA PRT.. X ........ ........ 52181 0 4.5 600. 0.0 0.00

13.... SH-1............ CON PITMAN-SWINK WL #1.............. X ........ ........ 34700 0 4.5 100. 0.0 0.00

13.... SH-1-03......... SCHNEIDER #1-93 WL LN............... X ........ ........ 36410 0 4.5 24816. 0.0 0.00

13.... SH-\1/2\........ 6'' SHARE-WEST PERRYTON LAT......... ........ ........ X 0 0 6.6 66000. 0.0 0.00

13.... SH-2-02......... MTR STA RDG GREGG WL 1.............. X ........ ........ 34530 0 4.5 2640. 0.0 0.00

13.... SH-2-02......... TEVIS #1-20 WL LN................... X ........ ........ 36420 0 4.5 15312. 0.0 0.00

13.... SH-2-02......... CONNER #1-36 WL LN.................. X ........ ........ 36750 0 4.5 370. 0.0 0.00

13.... ER-2-03......... SMITH #1-30 WELL LN................. X ........ ........ 34540 0 4.5 6864. 0.0 0.00

14.... ER-\1/2\........ 6'' ELLIS RANCH FLD LAT............. ........ ........ X 0 0 6.6 52800. 0.0 0.00

14.... ER-3............ 6'' ELLIS RANCH FLD LAT............. ........ ........ X 0 0 6.6 31680. 0. 0.00

14.... ER-3-01......... MTR STA H KAY NELL W#1.............. X ........ ........ 34640 0 4.5 10560. 0.0 0.00

[[Page 47386]]

14.... ER-3-01......... CONN AMOCO--#2 KAYNELL-HAMKER TRUSTA X ........ ........ 38710 0 0.0 0. 0.0 0.00

14.... ER-3-02......... ARTHUR MORGAN #1 WL LN.............. X ........ ........ 34660 0 4.5 19008. 0.0 0.00

14.... ER-3-03......... MORRIS C-1 4 LN & EQ................ X ........ ........ 34940 0 4.5 370. 0.0 0.00

14.... ER-3-04......... CONNMEWBOURNE--#1 MORRIS............ X ........ ........ 38610 0 4.5 6400. 0.0 0.00

14.... ER-3M........... 4'' MITCHELL #1 & #A-1 LAT.......... ........ ........ X 0 0 4.5 4224. 0.0 0.00

14.... ER-3M1.......... 4'' MITCHELL #1 & #A-1 LAT.......... ........ ........ X 0 0 4.5 10560. 0.0 0.00

14.... GR-1............ PERRY A #1-730 WL LN................ X ........ ........ 36490 0 6.6 45408. 0.0 0.00

14.... GR-1-01......... CONN ANDARKO #1-58 SELL NORTHRUP.... X ........ ........ 55360 0 0.0 0. 0.0 0.00

14.... GR-1-01......... WHEAT #1-678 WL LN.................. X ........ ........ 37130 0 4.5 53. 0.0 0.00

14.... GR-1-01......... SHELL-WHEAT #1-732 WL LN............ X ........ ........ 37150 0 6.6 7920. 0.0 0.00

14.... GR-1-01......... CONNMEWBOURNE--PERRY #2............. X ........ ........ 38680 0 0.0 0. 0.0 0.00

14.... GR-1-02......... CONN DICK BARTON #1................. X ........ ........ 37260 0 6.6 7920. 0.0 0.00

14.... GR-1-03......... CONN APACHE-MILES UNIT #1........... X ........ ........ 34484 0 4.5 1600. 0.0 0.00

14.... GR-1-03......... CONN APACHE HARRY L KING #1......... X ........ ........ 36470 0 6.6 21120. 0.0 0.00

14.... GR-1-03......... CONN MOUNTAIN FRONT VARIOUS WELLS... X ........ ........ 36471 0 0.0 0. 0.0 0.00

14.... GR-1-04......... CONN TED WEINER-MRS Z D GUY-1....... X ........ ........ 37400 0 4.5 1700. 0.0 0.00

14.... GR-1-07......... CONNMEWBOURNE--#1 PERRY............. X ........ ........ 38600 0 4.5 2100. 0.0 0.00

14.... GR-1-09......... CONN TARPON OIL-H PEERY #2.......... X ........ ........ 36480 0 6.6 7392. 0.0 0.00

14.... GR-2............ GRAY ROCK TW #826................... ........ X ........ 0 785 0.0 0. 0.0 0.00

14.... KC-3-02......... MTR STA FAL SEA-HAN #1.............. X ........ ........ 36060 0 4.5 7920. 4.5 100.00

14.... KC-3-03......... LANDERS #1 WL LN.................... X ........ ........ 37162 0 4.5 6864. 0.0 0.00

14.... KC-3-12......... CONN COURSON OIL #2-855 LANDERS..... X ........ ........ 55101 0 4.5 2520. 0.0 0.00

20.... BH-1/2/3/4/5.... 8'' HANSFORD LAT.................... ........ ........ X 0 0 8.6 63360. 0.0 0.00

20.... BH-2............ BRILLHART TW #748 & 796............. ........ X ........ 0 1493 0.0 0. 0.0 0.00

20.... BH-2-01......... LAT 4 GANDY & GLOVER TO BRILLHART... ........ ........ X 0 0 4.0 10800. 0.0 0.00

20.... BH-2-01......... GO-GAND WL LN-BRLHT LT.............. X ........ ........ 33930 0 4.5 21120. 4.5 100.00

20.... BH-2-03......... FARM TAP--GEORGE C. COLLARD......... X ........ ........ 352 0 0.0 0. 0.0 0.00

20.... BH-2-04......... CONN GULF-LOWE-1.................... X ........ ........ 33440 0 4.0 6000. 0.0 0.00

20.... BH-2-04......... CONN BILLINGSLEY #1................. X ........ ........ 33840 0 0.0 0. 0.0 0.00

20.... BH-2-05......... HORIZON-LOWE #1 WL LN............... X ........ ........ 33960 0 4.5 5808. 0.0 0.00

20.... BH-2-05......... BALLARD #1-123 WL LN................ X ........ ........ 33990 0 4.5 5808. 0.0 0.00

20.... BH-2-06......... CONN BROCK EXPL CORP #1 ANDERSON.... X ........ ........ 33411 0 0.0 0. 0.0 0.00

20.... BH-2-06......... MTR STA HOR OG COP WL 1............. X ........ ........ 33970 0 4.5 7920. 0.0 0.00

20.... BH-2-07......... CONN GULF-RHODA HART--1............. X ........ ........ 33400 0 8.0 5280. 0.0 0.00

20.... BH-3............ CONN UNIT DRILL & EXPL NO 1 BECK.... X ........ ........ 33090 0 4.5 120. 0.0 0.00

20.... BH-3-01......... FUR-MUR WL LN-BRLHT LT.............. ........ ........ X 0 0 4.5 15240. 0.0 0.00

20.... BH-3-01......... CONN MARY #2........................ X ........ ........ 33982 0 2.0 60. 0.0 0.00

20.... BH-3-03......... CONNMEWBOURNE-HIGGS #1.............. X ........ ........ 33160 0 0.0 0. 0.0 0.00

20.... BH-3/4.......... 8'' BERNSTEIN LAT................... ........ ........ X 0 0 8.0 52800. 0.0 0.00

20.... BH-4............ 8'' BRILLHART LAT................... ........ ........ X 0 0 8.6 36960. 0.0 0.00

[[Page 47387]]

20.... BH-4-01......... FARM TAP-PAT PATTERSON/ROBERT H. X ........ ........ 401 0 0.0 0. 0.0 0.00

ARCHER.

20.... BH-4-01......... GO-STL WL LN-BRLHT LAT.............. X ........ ........ 33870 0 4.5 15840 0.0 0.00

20.... BH-5-03......... CONNMARLIN OIL #1 SUE............... X ........ ........ 53250 0 0.0 0. 0.0 0.00

20.... BH-5-04......... CONN HORIZON TX BRILHRT 1-6 HNGFRD.. X ........ ........ 53230 0 4.0 3000. 0.0 0.00

21.... JC-1............ CONN BARBOUR ENERGY CORP. #1 JARVIS. X ........ ........ 33110 0 0.0 0. 0.0 0.00

21.... JC-1............ JOHN CREEK TW #747.................. ........ X ........ 0 708 0.0 0. 0.0 0.00

21.... JC-1/2.......... 6'' JOHN CREEK LAT.................. ........ ........ X 0 0 6.6 4382. 0.0 0.00

21.... JC-2............ JOHN CREEK CROSSOVER................ X ........ ........ 9238 0 0.0 0. 0.0 0.00

21.... JC-2............ MTR STA SUN O-MIN K #1.............. X ........ ........ 33700 0 4.5 4752. 0.0 0.00

21.... JC-2............ MTR STA GLE MATT WLI A.............. X ........ ........ 33941 0 6.6 18480. 4.5 100.00

21.... JC-2-01......... 4'' LAT F/JACKSON #1 & K L WEST #1.. ........ ........ X 0 0 4.5 13200. 0.0 0.00

21.... JC-2-01......... ARCHER #1-72 WELL LINE.............. X ........ ........ 33730 0 4.5 317. 0.0 0.00

21.... JC-2-02......... PAN AM-BRAINARD #1 LN............... X ........ ........ 33780 0 4.5 5280. 0.0 0.00

21.... JC-2-02......... MATHEWS #1 4LN & EQ................. X ........ ........ 38000 0 4.5 6336. 0.0 0.00

21.... JC-2-2.......... MATHEWS #1-80 WL LN................. X ........ ........ 35052 0 4.5 264. 0.0 0.00

21.... JC-3............ CLEMENT #1-14 WL LN................. X ........ ........ 33980 0 4.5 28512. 0.0 0.00

21.... JC-3............ CONN HORIZON #1 CONVERSE A OCHLTR... X ........ ........ 53240 0 0.0 0. 0.0 0.00

21.... JC-3-01......... PAN AM-BECK B #1 LN................. X ........ ........ 35061 0 4.5 264. 0.0 0.00

21.... LP-1-01......... FLOWERS #1-5 5 WL LN................ X ........ ........ 35041 0 4.5 158. 0.0 0.00

21.... LP-1-02......... CONN #2 REED........................ X ........ ........ 33650 0 4.5 4900. 0.0 0.00

21.... LP-1-02......... CONN ELEANOR REED WELL #1........... X ........ ........ 35071 0 4.5 264. 0.0 0.00

21.... LP-1-04......... CONN AMOCO PRO #2 WB MCINTIRE ``A''. X ........ ........ 52240 0 4.5 1800. 0.0 0.00

--------------------------------------------------------------------------------------------------------------------------------------------------------

Annex 2 to Schedule A

----------------------------------------------------------------------------------------------------------------

Acct Location

Res sys Fn State sys Loc description Area Line No. Map ref

----------------------------------------------------------------------------------------------------------------

SPEARMAN

35........ GP....... TX......... 75 30101 LIPS AS WELL A.......... TG 30101....... T-2.

GATH/TEXAS.

35........ GP....... TX......... 75 30301 JOHNSON #1 A.......... TG 30301....... T-2.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 30401 STATEX A.......... TG 30401....... T-2.

NITSCHKE #1

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 31001 BULTMAN #1 A.......... TG 31001....... T-2.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 32101 LIPS B1 WELLO A.......... TG 32101....... T-2.

GATH/TEXAS.

35........ GP....... TX......... 75 33201 KNOX PIPKIN #1- A.......... TG 33201....... T-2.

28 WELL GATH/

TEXAS.

35........ GP....... TX......... 75 38601 KILEBREW WELL A.......... TG 38601....... T-2.

GATH/TEXAS.

35........ GP....... TX......... 75 43801 FLOWERS #1 A.......... TG 43801....... T-2.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 48001 SPEARMAN 16IN A.......... TG 48001....... T-2.

SUCTION GATH/

TEXAS.

35........ GP....... TX......... 75 53601 FLOWERS #1/ A.......... TG 53601....... T-2.

FLOWERS #1 TIE-

IN.

35........ GP....... TX......... 75 61401 LIPS RANCH A.......... TG 61401....... T-2.

GATH/TEXAS.

35........ GP....... TX......... 75 72301 ROBERTS COUNTY A.......... TG 72301....... T-2.

#1 SUCTION

LINE/TX.

35........ GP....... TX......... 75 73501 ROBERTS CO #1 A.......... TG 73501....... T-2.

LINE/TEXAS.

35........ GP....... TX......... 75 81191 HODGES #1-39 A.......... TG 81191....... T-2.

WEKK GATHERING/

TEXAS.

35........ GP....... TX......... 75 86901 LIPS RANCH A.......... TG 86901....... T-2.

LATERAL.

35........ GP....... TX......... 75 87001 LIPS RANCH TIE- A.......... TG 87001....... T-2.

OVER LINE.

35........ GP....... TX......... 75 24001 NORTH OF A.......... TG24001........ T-3.

SPEARMAN GATH/

TEXAS.

35........ GP....... TX......... 75 24601 MCCARTY A1 A.......... TG 24601....... T-3.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 24701 VERNON A1 WELL A.......... TG 24701....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 31601 KIRK #1 WELL A.......... TG 31601....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 32801 JACKSON A#1 UT/ A.......... TG 32801....... T-3.

LT WELL GATH

LINE/TX.

[[Page 47388]]

35........ GP....... TX......... 75 32901 WILMETH WELL A.......... TG 32901....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 33501 ODC #1-44 WELL A.......... TG 33501....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 34701 REX #1 WELL A.......... TG 34701....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 35001 YANDA ET AL A.......... TG 35001....... T-3.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 35101 KENNY WELL A.......... TG 35101....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 38501 CLEMENTINE-LEE A.......... TG 38501....... T-3.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 38801 JACKSON #1LT/ A.......... TG 38801....... T-3.

BEULAH #1 TIE-

IN GATH.

35........ GP....... TX......... 75 38901 BRAINARD #3 A.......... TG 38901....... T-3.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 40601 MCINTIRE #1-LT A.......... TG 40601....... T-3.

AND UT WELL

GATH/TEXAS.

35........ GP....... TX......... 75 41201 BEULAH #1 WELL A.......... TG 41201....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 46101 MATHEWS #2 A.......... TG 46101....... T-3.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 60801 COOKE #1C WELL A.......... TG 60801....... T-3.

GATH/TEXAS.

35........ GP....... TX......... 75 64201 CROWE 7-58 A.......... TG 64201....... T-3.

WELL GATH/

TEXAS.

35........ GP....... TX......... 75 86801 BRACKEN ENERGY- A.......... TG 86801....... T-3.

ETLING #1-8.

FULLER

37........ GP....... TX......... 55 53401 FISHER #1 WELL A.......... TG 53401....... T-3.

GATH/TEXAS.

37........ GP....... TX......... 55 53701 R WAMBLE #1... A.......... TG 53701....... T-3.

37........ GP....... TX......... 55 53801 PEARL #1...... A.......... TG 53801....... T-3.

37........ GP....... TX......... 55 53901 BOARD #1 WELL A.......... TG 53901....... T-3.

GATH/TEXAS.

37........ GP....... TX......... 55 59201 GENE CLUCK #1 A.......... TG 59201....... T-3

WELL GATHERING

LINE/T.

PERRYTON

79........ GP....... OK......... 44 16701 GEORGE MOUNTS A.......... OG 16701....... O-13.

WELL GATH/

OKLAHOMA.

79........ GP....... OK......... 44 17801 SIMS #1 A.......... OG 17801....... O-13.

LATERAL GATH/

OKLAHOMA.

79........ GP....... OK......... 44 24001 WILSON #1 GATH/ A.......... OG 24001....... O-13.

OKLAHOMA.

79........ GP....... OK......... 44 27301 PALMER #1 WELL A.......... OG 27301....... O-13.

GATH/OKLAHOMA.

79........ GP....... OK......... 44 31901 PITTMAN #1 A.......... OG 31901....... O-13.

WELL/GATH/

OKLAHOMA.

79........ GP....... OK......... 44 47201 BECKWITH 1-22 A.......... OG 47201....... O-13.

WELL GATHERING/

OKLA.

79........ GP....... OK......... 44 50501 NAYLOR #1 WELL A.......... OG 50501....... O-13.

GATH/OKLA.

79........ GP....... TX......... 71 21301 CUTTER #1 WELL A.......... TG 21301....... T-2.

GATH/TEXAS.

79........ GP....... TX......... 71 21401 PHISGODA #1 A.......... TG 21401....... T-2.

WELL GATH/

TEXAS.

79........ GP....... TX......... 71 21501 ORINGDERFF A.......... TG 21501....... T-2.

WELL GATH/

TEXAS.

79........ GP....... TX......... 71 21601 WRIGHT #1 WELL A.......... TG 21601....... T-2.

GATH/TEXAS.

79........ GP....... TX......... 71 21701 SCHOENHALS #1 A.......... TG 21701....... T-2.

WELL.

79........ GP....... TX......... 71 21801 GEORGE MOUNTS A.......... TG 21801....... T-2.

#1 WELL GATH/

TEXAS.

79........ GP....... TX......... 71 27301 PALMER #1 WELL A.......... TG 27301....... T-2.

GATH LINE/

TEXAS.

79........ GP....... TX......... 71 28401 GEORGE #1 WELL A.......... TG 28401....... T-2.

GATH/TEXAS.

79........ GP....... TX......... 71 28801 LE MASTER #1 A.......... TG 28801....... T-2.

WELL GATH/

TEXAS.

79........ GP....... TX......... 71 30801 ODELL LA MASTER A.......... TG 30801....... T-2.

WELL GATH/

TEXAS.

79........ GP....... TX......... 71 32301 GREENE #1 WELL. A.......... TG 32301....... T-2.

79........ GP....... TX......... 71 32601 SIMS #1-36L A.......... TG 32601....... T-2.

WELL GATH/

TEXAS.

79........ GP....... TX......... 71 34301 MOYES-GEORGE #1 A.......... TG34301........ T-2.

WELL GATH/

TEXAS.

79........ GP....... TX......... 71 38701 PERRY #1 WELL A.......... TG 38701....... T-2.

GATH/TEXAS.

79........ GP....... TX......... 71 39201 PERRY B1 WELL A.......... TG 39201....... T-2.

GATH/TEXAS.

79........ GP....... TX......... 71 71701 SCHULTZ #1 WELL A.......... TG 71701....... T-2.

GATHERING/

TEXAS.

79........ GP....... TX......... 71 80031 BATMAN #1-21 A.......... TG 80031....... T-2.

SIDE VALVE/

TEXAS.

79........ GP....... TX......... 71 80751 TANDY #1 WELL A.......... TG 80751....... T-2.

GATHERING LINE/

TX.

----------------------------------------------------------------------------------------------------------------

ITEM IN BOLD REFLECTS A PORTION OF THE TOTAL LINE NO. REFERENCED AS TG24001

The facilities for line no. TG24001 include only the following facilities: Buckner A1 wellhead facilities and

approximately 3.4 miles of 4-inch pipeline from well connection in section 20 to side valve on the 10-inch

TG24001 in section 27; and approximately 6.5 miles of 4-inch pipeline from a side valve on TG64201 in section

25 to a side valve on the 10-inch TG24001 in section 30 (including well facilities for G1, G1A, G2, & G3).

This Interim Agreement (``Agreement'') is by and among Phillips

Petroleum Company (``Phillips''), a corporation organized, existing and

doing business under and by virtue of the laws of the state of

Delaware, with its principal executive offices located at Phillips

Building, Bartlesville, Oklahoma 74004; Enron Corp. (``Enron'') a

corporation organized, existing, and doing business under and by virtue

of the laws of the State of Delaware, with its principal executive

offices located at 1400 Smith Street, Houston, Texas 77002; and the

Federal Trade Commission (``Commission''), an independent agency of the

United States Government, established under the Federal Trade

Commission Act of 1914, 15 U.S.C. Sec. 41, et seq. (collectively, the

``Parties'').

Premises

Whereas, on November 15, 1994, Phillips entered into an Agreement

to acquire certain voting securities from Enron, as further described

in the ``Acquisition'' definition in the Agreement Containing Consent

Order between Phillips, Enron, and the Commission; and

Whereas, the Commission is now investigating the Acquisition to

determine whether it would violate any of the statutes enforced by the

Commission; and

Whereas, if the Commission accepts the Agreement Containing Consent

Order (``Consent Order''), the Commission must place it on the public

record for a period of at least sixty (60) days and may subsequently

withdraw such acceptance pursuant to the

[[Page 47389]]

provisions of Section 2.34 of the Commission's Rules; and

Whereas, under the Consent Order, Enron will not sell, transfer or

otherwise convey, directly or indirectly, to Phillips certain assets

listed in Schedule A of the Consent Order in connection with the

Acquisition; and

Whereas, the Commission is concerned that if an understanding is

not reached to preserve the status quo ante, divestiture resulting from

any proceeding challenging the legality of the Acquisition might not be

possible, or might be a less than effective remedy; and

Whereas, the purpose of this Agreement is to preserve the status

quo ante pending Commission acceptance or rejection of the proposed

Consent Order and to preserve a remedy for any anticompetitive effects

of the Acquisition; and

Whereas, Phillips and Enron's entering into this Agreement shall in

no way be construed as an admission by Phillips and Enron that the

Acquisition is illegal or anticompetitive; and

Whereas, Phillips and Enron understand that no act or transaction

contemplated by this Agreement shall be deemed immune or exempt from

the provisions of the antitrust laws or the Federal Trade Commission

Act by reason of anything contained in this Agreement.

Now, therefore, with the understanding that the Commission has not

yet determined whether the Acquisition will be challenged, and in

consideration of the Commission's agreement that, unless the Commission

determines to reject the Consent Order, it will not seek further relief

from Phillips and Enron with respect to the Acquisition (except that

the Commission may exercise any and all rights to enforce this

Agreement and the Consent Order to which it is annexed and made a part

thereof,) the Parties agree as follows:

1. Phillips and Enron agree to execute and be bound by the Consent

Order. Phillips, Enron, and the Commission further agree that each term

defined in the Consent Order shall have the same meaning in this

Agreement.

2. Phillips and Enron agree that from the date this Agreement is

accepted until the earlier of the dates listed in subparagraphs 2.a.

and 2.b., they will not consummate the Acquisition:

a. Three (3) business days after the Commission withdraws its

acceptance of the Consent Order pursuant to the provisions of Section

2.34 of the Commission's rules; or

b. One day after the Consent Order becomes final.

3. Should the Federal Trade Commission seek in any proceeding to

compel Phillips to divest itself of the voting securities acquired in

the Acquisition, or assets conveyed pursuant thereto, or to seek any

other injunctive or equitable relief, Phillips and Enron shall not

raise any objection based on the expiration of the applicable waiting

period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976

or the fact that the Commission has permitted the Acquisition. Phillips

and Enron also waive all rights to contest the validity of this

Agreement.

4. For the purpose of determining or securing compliance with this

Agreement, subject to any legally recognized privilege, and upon

written request with reasonable notice to Phillips or Enron, as the

case may be, made to its principal office, Phillips or Enron, as the

case may be, shall permit any duly authorized representative or

representatives of the Commission:

a. Access during the office hours of the company and in the

presence of counsel to inspect and copy all books, ledgers, accounts,

correspondence, memoranda, and other records and documents in the

possession or under the control of the company relating to compliance

with this Agreement;

b. Without restraint or interference from it, to interview officers

or employees of the company, who may have counsel present, regarding

any such matters.

5. In the event the Commission has not finally issued the Consent

Order within one hundred twenty (120) days of its publication in the

Federal Register, Phillips or Enron may each, at its own option,

terminate this Agreement by delivering written notice of termination to

the Commission, which termination shall be effective ten (10) days

after the Commission's receipt of such notice, and this Agreement shall

thereafter be of no further force and effect. If this Agreement is so

terminated, the Commission may take such action as it deems

appropriate, including, but not limited to, an action pursuant to

Section 13(b) of the Federal Trade Commission Act, 15 U.S.C.

Sec. 53(b). Termination of this Agreement shall in no way operate to

terminate the Consent Order that Phillips and Enron have entered into

in this matter.

6. This Agreement shall not be binding until approved by the

Commission.

Analysis To Aid Public Comment on the Provisionally Accepted Consent

Order

The Federal Trade Commission (``Commission'') has accepted for

public comment from Phillips Petroleum Co. (``Phillips'') and Enron

Corp. (``Enron'') an agreement containing consent order. This agreement

has been placed on the public record for sixty (60) days for reception

of comments from interested persons.

Comments received during this period will become part of the public

record. After sixty (60) days, the Commission will again review the

agreement and the comments received, and will decide whether it should

withdraw from the agreement or make final the agreement's order.

The Commission's investigation of this matter concerns Phillips'

proposed acquisition, through its wholly-owned subsidiary, GPM Gas

Services Corp., of certain pipeline gathering systems owned by Enron's

subsidiaries, Northern Natural Gas Co. and Transwestern Pipeline Co.

Phillips and Enron are engaged in gas gathering--the transportation of

natural gas, for their own or for others' use, from a well head or

producing area to a gas transmission pipeline or a gas processing

plant. The Commission's investigation of this matter found potential

anticompetitive problems in the Texas Panhandle counties of Hansford,

Lipscomb, and Ochiltree and the immediately adjoining area in Beaver

County, Oklahoma (hereafer referred to as the Panhandle counties).

For certain gas and oil producers in the Panhandle counties, the

respondents are the only, or two of very few, choices available for

producers who require gas gathering services. The Commission was

concerned that the proposed merger would eliminate competition between

the respondents in providing gas gathering services. The Commission was

also concerned that the proposed merger would lead to anticompetitive

increases in gathering rates to these producers, and an overvall

reduction in gas drilling and production.

The agreement Containing Consent order would, if finally issued by

the Commission, settle charges alleged in the Commission's Complaint

that Phillips' acquisition of Enron's gas gathering systems

substantially lessened competition in the gathering of natural gas in

the Panhandle counties. The nature of such competition to be preserved

is the actual and potential competition to provide gas gathering

services to producers and other customers of the parties. The

Commission's Complaint further alleges that Phillips' merger agreement

with Enron violates Section 5 of the Federal Trade Commission Act and

that the merger, if consummated, would violate Section 5 of the Federal

Trade

[[Page 47390]]

Commission Act and Section 7 of the Clayton Act.

The order accepted for public comment contains provisions that

would require that Enron not sell approximately 830 miles of pipe and

related gas gathering assets within the Panhandle counties to Phillips.

The gas gathering assets to be excluded from the transaction are listed

in Schedule A of the proposed Consent Order. For a period of ten (10)

years from the date that the order becomes final, the order would

require prior Commission notification before (a) Phillips could acquire

from any one person during any 18 month period more than five miles of

gas gathering pipelines located within the Panhandle counties, or (b)

Enron could sell the Schedule A assets to Phillips or Maxus Energy

Corporation, another large gas gatherer in the Panhandle counties.

A separate agreement between the Commission and Phillips and Enron

preserves the status quo pending final action by the Commission to

accept or reject the proposed consent order. Phillips and Enron agreed

to take no steps to consummate the proposed acquisition until the

Commission accepts or rejects the proposed order.

The purpose of this analysis is to invite public comment concerning

the consent order. This analysis is not intended to constitute an

official interpretation of the agreement and order or to modify their

terms in any way.

Donald S. Clark,

Scretary.

[FR Doc. 95-22581 Filed 9-11-95; 8:45 am]

BILLING CODE 6750-01-M