Message-ID: <69177.1075854184918.JavaMail.evans@thyme> Date: Fri, 27 Oct 2000 03:46:00 -0700 (PDT) From: vance.taylor@enron.com To: mary.poorman@enron.com Subject: Re: Meter 984229 - Roos Common Point - Trade Zone 18 Cc: katherine.benedict@enron.com, julie.meyers@enron.com, daren.farmer@enron.com, pat.clynes@enron.com, robert.cotten@enron.com, melissa.graves@enron.com, donald.reinhardt@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: katherine.benedict@enron.com, julie.meyers@enron.com, daren.farmer@enron.com, pat.clynes@enron.com, robert.cotten@enron.com, melissa.graves@enron.com, donald.reinhardt@enron.com X-From: Vance L Taylor X-To: Mary Poorman X-cc: Katherine Benedict, Julie Meyers, Daren J Farmer, Pat Clynes, Robert Cotten, Melissa Graves, Donald P Reinhardt X-bcc: X-Folder: \Darren_Farmer_Dec2000\Notes Folders\Wellhead X-Origin: Farmer-D X-FileName: dfarmer.nsf Mary, HPLC meter number 0984229 was physically remove from service in December, 1999. Typically, before HPL physically pulls a meter, production has ceased at minimum for 6 months or the production has been released. In the case of the Roos common point, the producing wells were released and attached to meter 0989740 in 11/98 and the remaining wells are non-producing. Resultingly, the only viable option for resolution is option 2. We should take the deal to zero by "unwinding" it. vlt x3-6353 Mary Poorman@ENRON 10/24/2000 12:40 PM To: Vance L Taylor/HOU/ECT@ECT cc: Katherine Benedict/HOU/ECT@ECT, Julie Meyers/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON, Robert Cotten/HOU/ECT@ECT Subject: Re: Meter 984229 - Roos Common Point - Trade Zone 18 Vance: Per our conversation, we have two possible options to resolve this deal, depending on whether the wellheads are producing or not. Producing: If that is the case, the purchase from Calpine, and any contracts hedged to it will need to be backed up in the system to a wellhead level. Once that is done, I will need to research in the system how those wellheads were allocated and paid and reallocate to your Calpine deal. This will probably have to go back to HPLC's ownership of HPLR's gathering assets. Non-producing: Should we determine that the Common Point and any wells behind it have been shut-in, or P&A'd, we will need to reallocate this deal to zero, and unwind any hedges against it (or, move the hedges to another deal, if possible. Since the deal is older, we probably sold lower priced contracts against the production and a buy-back today would possibly result in a financial loss). In either case, the deal needs to be cleaned up back to the date of last flow at meter 4229, which I am currently looking into. I will email you as soon as I ascertain that date. In lieu of the past couple of days, we may need to look at all of the deals which were impacted by HPLC's aquisition of HPLR's gathering to ensure that they are being captured properly, both at a book level and at a state filing level. Please let me know what your thoughts are as to how to accomplish this. Thank you again for all of your hard work in this area, Mary