Message-ID: <15250787.1075854157093.JavaMail.evans@thyme> Date: Tue, 11 Apr 2000 04:55:00 -0700 (PDT) From: daren.farmer@enron.com To: stacey.neuweiler@enron.com Subject: King Ranch Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Daren J Farmer X-To: Stacey Neuweiler 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 04/11/2000 11:55 AM --------------------------- Enron North America Corp. From: Brenda F Herod 04/11/2000 09:54 AM To: Daren J Farmer/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON, Stella L Morris/HOU/ECT@ECT cc: Brian M Riley/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Clem Cernosek/HOU/ECT@ECT, Howard B Camp/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Michael Walters/HOU/ECT@ECT Subject: King Ranch I just spoke briefly with Brian Riley, who is working to restructure the Knig Ranch contracts with Exxon, and put Coastal into the loop. Yesterday I forwarded each of you an E-mail from Steve Van Hooser which had drafts of contracts attached. As I talked with Brian, the King Ranch set up as he is negotiating will be simplified. The intent, as I understood it, is that we will no longer buy at the wellhead. Rather, Coastal is entering into a a gathering agreement with HPL to buy at the wellhead and ship to the plant. HPLC will buy at the tailgate of the plant, net of PVR. So there will not be future settlements with Exxon on liquids. The paper has not been returned from Coastal or Exxon yet, but the deal is effective 4/1/00. Everything will be under new agreements, with receipts and deliveries by different counterparties. The gas flow continues the same, just under new contracts and different counterparties. Daren, Pat and Stella: Daren, Brian said he would get with you to discuss the deal in further detail. Please include Pat and Stella in the discussion also. The contracts should be reviewed and understood to ensure proper scheduling. As I mentioned to Greg Sharp and Brian, it is critical that we be kept in the loop, especially on retroactive deals, as scheduling, transport rates and risk are affected. Thanks to everyone for ensuring the communication lines are in place.