Message-ID: <10383767.1075853051003.JavaMail.evans@thyme> Date: Mon, 27 Aug 2001 20:33:30 -0700 (PDT) From: rick.kile@enron.com To: charlie.graham@enron.com, lynn.blair@enron.com Subject: Re: FW: Mt. Jesus Condensate Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Kile, Rick X-To: Graham, Charlie , Blair, Lynn X-cc: X-bcc: X-Folder: \LBLAIR (Non-Privileged)\Blair, Lynn\Customer - Oneok X-Origin: Blair-L X-FileName: LBLAIR (Non-Privileged).pst We probably need someone from operations to go with Oneok to pull this sample. Mt. Jesus drip is at pipeline pressure, and there are safety issues with sample collecting at the site. I could probably attend (if scheduled in advance), if you want, also an Ashland team member should probably be there. Thanks. From: Charlie Graham/ENRON@enronXgate on 08/27/2001 01:39 PM To: Lynn Blair/ENRON@enronXgate cc: Dan Fancler/ENRON@enronXgate, Stephen Herber/Enron@EnronXGate, Rick Kile/ET&S/Enron@ENRON, Ronnie Brickman/ET&S/Enron@ENRON, Kenneth Cessac/ENRON@enronXgate Subject: FW: Mt. Jesus Condensate Oneok has every right to sample the location themselves and should. I feel compelled to allow them some time to do so, but also feel put upon, given they have had over a year to do so but instead have chosen to stonewall us!!!! If you could keep the heat on (in a firm but empathetic way) that would be good. Neubauer wants NNG/Oneok issues to be discovered, defined, and addressed (or if necessary arbitrated) quickly rather than allowing them to languish. On another note, if Delaine has not been the problem who has been. I would have less sympathy for whoever has been dragging their feet (probably wishing this would just go away) than I do for Delaine who seems to be just trying to get to the bottom of it. I sense she is hitting the same stonewall (and I'll call you back run around)we have. Charlie -----Original Message----- From: Blair, Lynn Sent: Monday, August 27, 2001 12:54 PM To: Graham, Charlie Cc: Brickman, Ronnie; Kile, Rick; Howard, Randy; Fancler, Dan; Moseley, Debbie; Rice, Randy; Stephens, LD; Cessac, Kenneth; Herber, Stephen; Kowalke, Terry; Woodson, Harry Subject: RE: Mt. Jesus Condensate Charlie, I agree we should get payment either way. Gas Logistics is meeting with Oneok on Wednesday on some other matters. Do you want Steve Herber or I to mention this again to Delaine or wait to see what their review says? Thanks. Lynn -----Original Message----- From: Graham, Charlie Sent: Monday, August 27, 2001 7:34 AM To: Blair, Lynn Cc: Brickman, Ronnie; Kile, Rick; Howard, Randy; Fancler, Dan; Moseley, Debbie; Rice, Randy; Stephens, LD; Cessac, Kenneth; Herber, Stephen Subject: FW: Mt. Jesus Condensate Lynn, Thanks for your help getting this pushed along. Shouldn't we take the approach that payment to Northern is expected immediately once Oneok verifies the liquid is condensate. Whether they ever reach agreement with their hauler or not is not germane to paying us. We have been pressing Oneok about Mt. Jesus since April of 2000 and provided them with a sample analysis (taken by us) September 30, 2000! You can see by the trail of e-mails below, they seem to brush us off about once a month. Thanks Charlie -----Original Message----- From: Kurth, Delaine [mailto:dkurth@Oneok.com] Sent: Monday, August 27, 2001 6:43 AM To: Graham, Charlie Cc: 'ronnie.brinkman@enron.com' Subject: RE: Mt. Jesus Condensate Charlie, I talked with Mike Belcher and Jon Hanna about this on Friday for an update. We have hired a consultant to go out there this week, CP Resources. They will evaluate the situation at Mt. Jesus and at Sublette. If determined that the liquids do have condensate in them, we will pursue retroactive settlement with the current hauler. Hopefully we will bring this to a close very soon. Thanks for patience. Delaine -----Original Message----- From: Charlie.Graham@enron.com [mailto:Charlie.Graham@enron.com] Sent: Wednesday, July 18, 2001 9:01 AM To: dkurth@Oneok.com Cc: Rick.Kile@enron.com; Debbie.Moseley@enron.com Subject: RE: Mt. Jesus Condensate Hi Delaine. It has been a while so thought I would check on your review of our request for payment for Mt. Jesus mmbtu. Do you need anything more from NNG? Charlie -----Original Message----- From: "Kurth, Delaine" @ENRON [mailto:IMCEANOTES-+22Kurth+2C+20Delaine+22+20+3Cdkurth+40Oneok+2Ecom+3E+40E NRON@ENRON.com] Sent: Tuesday, June 19, 2001 2:58 PM To: Graham, Charlie Subject: RE: Mt. Jesus Condensate Charlie, I will reivew the information and get back to you as soon as possible. Thanks, Delaine -----Original Message----- From: Graham, Charlie [mailto:Charlie.Graham@ENRON.com] Sent: Tuesday, June 19, 2001 2:42 PM To: Delaine Kurth (E-mail) Subject: Mt. Jesus Condensate Delaine, The Operating Agreement between Northern and KN (now Oneok) entitles Oneok to all condensate and drip liquids removed from any of the Northern pipelines, equipment or facilities upstream of Oneok's Bushton Plant. That agreement also provides that Oneok will be responsible for picking-up, hauling and providing a detailed accounting of such liquids removed. In addition Oneok is to pay Northern for the shrinkage attributable to such condensate and drip. Northern invoices Oneok monthly for a cash reimbursement of the mmbtu's attributable to the condensate removed. Effective April 2000, Oneok began short paying its invoices. The table below summarizes the amount shorted through April 2001 as $67, 889.36. This short payment reflects Oneok's refusal to reimburse Northern for removal of condensate attributable to the Mount Jesus Drip, lease # 71176. Oneok has indicated to Northern that Oneok's contract hauler contends the liquid removed from Northern's system at this point is water. In spite of evidence provided by Northern to the contrary, Oneok accepts its contractor's contention, apparently pays a disposal fee, and refuses to reimburse Northern for the mmbtu's lost. This location produced condensate prior to the March 31, 1997 agreement and no change to Northern's pipeline operations that would impact condensation dropout has occurred. Oneok was properly reimbursing Northern prior to April 2000. In addition, the attached analysis of liquid removed from the location on September 20, 2000, demonstrates that hydrocarbon condensate continues to be collected at the drip. Northern must insist that compensation for these BTU's removed from Northern's System be made by Oneok. Your immediate attention to this matter is appreciated. Thanks Charlie (402) 398-7061 Northern Natural Gas Company Shortpay Analysis Mt. Jesus Drip (BBLS * 42) (GAL * .116) Date Rate BBLS Gallons Mmbtu Amount Apr-01 $ 4.9474 345.00 14,490.00 1,680.84 $ 8,315.80 Mar-01 $ 4.9851 180.00 7,560.00 876.96 $ 4,371.76 Feb-01 $ 5.5555 200.00 8,400.00 974.40 $ 5,412.96 Jan-01 $ 8.0133 180.00 7,560.00 876.96 $ 7,027.33 Dec-00 $ 8.7182 240.00 10,080.00 1,169.28 $10,194.02 Nov-00 $ 5.2090 205.00 8,610.00 998.76 $ 5,202.54 Oct-00 $ 4.8727 140.00 5,880.00 682.08 $ 3,323.57 Sep-00 $ 4.8503 240.00 10,080.00 1,169.28 $ 5,671.36 Aug-00 $ 4.2166 140.00 5,880.00 682.08 $ 2,876.06 Jul-00 $ 3.8249 140.00 5,880.00 682.08 $ 2,608.89 Jun-00 $ 4.0792 380.00 15,960.00 1,851.36 $ 7,552.07 May-00 $ 3.2884 160.00 6,720.00 779.52 $ 2,563.37 Apr-00 $ 2.8424 200.00 8,400.00 974.40 $ 2,769.63 2,750.00 115,500.00 13,398.00 $67,889.36 <>