Larry-
A good way to avoid gut-hooked fish is to try using circle hooks instead of conventional bait hooks. They almost always get caught in the fish's lip and will rarely gut-hook. They take a little getting used to, but they work. Instead of actually setting the hook, you simply draw the line tight by flipping your bail closed once the fish has picked up the eeel and is running with it and then letting the drag set the hook. This lets the hook travel back up through the fish's mouth and the hook gets caught in the lip. They work and they are an important conservation measure. You should see your hook-up ratio increase dramatically and your gut-hook ratio drop equally as dramatically. Everyone should be using them when fishing with bait.