Message-ID: <12124344.1075842511346.JavaMail.evans@thyme> Date: Fri, 15 Sep 2000 01:06:00 -0700 (PDT) From: drew.fossum@enron.com To: christine.stokes@enron.com, susan.scott@enron.com Subject: Re: Revised Duke Contract Approval Request Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Drew Fossum X-To: Christine Stokes, Susan Scott X-cc: X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\'sent mail X-Origin: FOSSUM-D X-FileName: dfossum.nsf Approved. DF ---------------------- Forwarded by Drew Fossum/ET&S/Enron on 09/15/2000 08:04 AM --------------------------- Susan Scott 09/14/2000 11:18 AM To: Christine Stokes/ET&S/Enron@ENRON cc: Drew Fossum/ET&S/Enron@ENRON Subject: Re: Revised Duke Contract Approval Request Approved, subject to Drew's approval. Christine Stokes 09/14/2000 09:26 AM To: Bob Burleson/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON cc: Susan Scott/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron Subject: Revised Duke Contract Approval Request TRANSWESTERN PIPELINE COMPANY CONTRACT APPROVAL FORM Please review the attached revised non-standard discount letter to Duke Energy Trading & Marketing (DUKE) and the associated letter from Transwestern to Duke which outlines the conditions of Transwestern's Contribution in Aid of Construction (CIAC) payment to Duke for certain facility upgrades. The revised discount letter eliminates the reference to actual fuel (calculated at 1.5% for the EOT Area) which Duke shall provide to Transwestern. All fuel which Duke shall provide Transwestern shall be at the Tariff fuel rate. Bob Burleson has decided not to monetize the difference between actual fuel and Tariff fuel (difference being only .19%) and revise the rate given that the current economics of the deal already provide for a 24% rate of return (not including any fuel retainage "value added" factor). Transwestern shall pay Duke $750,000 for Duke facility upgrades in order to increase gas receipts into Transwestern from Duke's Artesia plant and Big Eddy gathering system by an incremental 20,000 Dth/d. Duke shall subsequently subscribe to a five year transportation contract for 20,000 Dth/d of East of Thoreau (EOT) capacity at a $.05/Dth/d one-part rate effective November 1, 2000. Duke has been given alternate receipt and delivery rights in Transwestern's EOT Area. Duke has also been granted the ability to flow to California on an alternate basis at a total rate of $.09/Dth/d. Please indicate approval via REPLY WITH HISTORY. Please contact me at x5702 if any questions arise.