Message-ID: <31361505.1075854154703.JavaMail.evans@thyme> Date: Tue, 27 Jun 2000 13:36:00 -0700 (PDT) From: daren.farmer@enron.com To: pat.clynes@enron.com Subject: Flexible Physical US Nat Gas Products on EnronOnline Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Daren J Farmer X-To: Pat Clynes X-cc: X-bcc: X-Folder: \Darren_Farmer_Dec2000\Notes Folders\Sent X-Origin: Farmer-D X-FileName: dfarmer.nsf ---------------------- Forwarded by Daren J Farmer/HOU/ECT on 06/27/2000 08:36 PM --------------------------- Victor Lamadrid 06/27/2000 03:50 PM To: Edward Terry/HOU/ECT@ECT, Randall L Gay/HOU/ECT@ECT, George Smith/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT cc: Robert Superty/HOU/ECT@ECT Subject: Flexible Physical US Nat Gas Products on EnronOnline Wanted to give you a heads up to these flexible physical deals that might involve your desks via EOL in the near future. We already have one in the East. I stressed to the Sitara/EOL folks the importance of adding comments to the term sections of these baseload and term tickets so we know what is happening. One side of these buy/sell or exchange deals will be ratable and the corresponding partner ticket will have the optionality.Comments will include the corresponding deal number, that it is in fact a buy/sell or exchange deal and the delivery time period(3,5 or 10 days) that the counterparty desires. I hope this helps...THANKS! ---------------------- Forwarded by Victor Lamadrid/HOU/ECT on 06/27/2000 02:51 PM --------------------------- From: Thomas Engel 06/26/2000 11:49 AM To: Linda S Bryan/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Larry Joe Hunter/HOU/ECT@ECT, Dale Neuner/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT cc: Bob Bowen/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT Subject: Flexible Physical US Nat Gas Products on EnronOnline Can you all meet this afternoon or tomorrow to discuss this. Call me 3-1488. ---------------------- Forwarded by Thomas Engel/HOU/ECT on 06/26/2000 11:42 AM --------------------------- From: Scott Mills 06/23/2000 09:51 AM To: Thomas Engel/HOU/ECT@ECT, Linda S Bryan/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT cc: Subject: Flexible Physical US Nat Gas Products on EnronOnline Got any ideas on how this transaction should look. This looks like a monthly volume that would be further refined to daily on the expected volumes once the counterparty has made their decision (I would imagine logistics will be the one communicating with the counterparty). We probably need EOL to indicate whether it is a 3, 5, 10 day delivery cycle and then indicate this as comments. Linda/Karen -what are your thoughts on how separate GTC would work on this. If we could all do a little homework. I will get something scheduled for next week to discuss further. SRM (x33548) ---------------------- Forwarded by Scott Mills/HOU/ECT on 06/23/2000 09:37 AM --------------------------- Dale Neuner 06/23/2000 08:40 AM To: David Forster/Corp/Enron@Enron, Sheri Thomas/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Stacy E Dickson/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Jeff Blumenthal/HOU/ECT@ECT, Stephen H Douglas/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Imelda Frayre/HOU/ECT@ECT, Larrissa Sharma/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Frank L Davis/HOU/ECT@ECT, Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT, Jefferson D Sorenson/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Larry Joe Hunter/HOU/ECT@ECT, Jennifer Blay/HOU/ECT@ECT cc: Scott Hendrickson/HOU/ECT@ECT Subject: Flexible Physical US Nat Gas Products on EnronOnline We are positioning ourselves to release a new Product Type that we will refer to as a Flexible Physical Gas product. Legal is in the process of drafting a GTC and Product Type description that will be used with this Product Type. I will start the building process once Legal provides the GTC and Product Type description; but in the interim, here's a broadstroke description of how the transaction works: Party A and Party B exchange gas during the month of June 2000. Party A buys 10,000 MMBtu per day (or 300,000 total MMBtu) at TCO Pool Index Party B has the right to notify Party A of when Party B wants to take delivery during the month of June, and may take delivery in one of three forms: 3-day delivery, 5-day delivery, or 10-day delivery. The gas nominated for each such day would be a percentage of the total 300,000 MMBtu (i.e.; If Party B chooses 5 days for nomination, Party A would deliver 20% of the 300,000 MMBtu on each of those 5 days for a total nom of 100%). Party B pay TCO Pool Index PLUS a premium. I understand that this type of transaction is currently done over-the-counter. Scott Mills has previously issued an explanatory e-mail of Sitara concerns and we should begin to address those issues. Bjorn - if you could ask someone to prepare a Sigma Factor in advance, then my turn around time to for the Product Type should be reduced. Also, due to the varying 'optionality', do you think these three different products will require three different Product Types? Please feel free to call if you have any questions. Dale 3-9746