Message-ID: <32971753.1075853863594.JavaMail.evans@thyme> Date: Tue, 20 Mar 2001 23:39:00 -0800 (PST) From: chris.germany@enron.com To: ruth.concannon@enron.com, john.hodge@enron.com Subject: Offers For Relinquishment of Firm Capacity Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Chris Germany X-To: Ruth Concannon, John Hodge X-cc: X-bcc: X-Folder: \Chris_Germany_Jun2001\Notes Folders\All documents X-Origin: Germany-C X-FileName: cgerman.nsf Let me know if you guys are receiving the Transco postings. ---------------------- Forwarded by Chris Germany/HOU/ECT on 03/21/2001 07:36 AM --------------------------- "CustomerNotices, WGPHOU" on 03/20/2001 03:28:51 PM To: "Alatorre, Hector" , "Alvarado, Orlando" , "Ambler, Margie" , "Anderson, Toi" , "Avioli, James" , "Blodgett, Kerry" , "Bowman, Terri" , "Buhrke, Cathy" , "Catlett, Laurie" , "Conley, Allan" , "Cordray, Stan" , "Cortez, Diama" , "Cox, Ann" , "Cunningham, Larry" , "Doyle, Ronald" , "Eaton, John" , "Egner, Paul" , "Fitch, Terry" , "Flores, Gloria" , "Gallerano, John" , "Gensler, Quentin" , "Hargrove, Nancy" , "Heiser, Suzanne" , "Helburg, Charles" , "Higginbotham, Keith" , "Hungate, Cynthia" , "Immer, Ingrid" , "Kelley, James" , "Kelley, Nancy" , "King, Mable" , "Kleiner, Margaret" , "Laird, Mary" , "Laughlin, Helen" , "Laurel, Liz" , "Lindloff, Monty" , "Loggins, Kenneth" , "Lowrey, Roseanne" , "McCauley, Laurie" , "Mingen, Michele" , "Monley, John" , "Mott, Louella" , "Muenster, Kay" , "Nguyen, Michelle" , "Payne, Leon" , "Prevott, Rose" , "Prodoehl, Paul" , "Ramos, J Linda" , "Ramos, Mary" , "Roberts, Jan" , "Robertson, Constance" , "Rush, Russell" , "Scott, Mark" , "Shaull, Barbara" , "Silvas, Elizabeth" , "Sirois, Jeannette" , "Smith, Elsie" , "Swanson, Debbe" , "Taylor, Charles" , "Wahlstrom, Scottie" , "Walleck, Lynn" , "Watson-Combre, Cassandra" cc: Subject: Offers For Relinquishment of Firm Capacity To: Existing Firm Transportation Shippers Re: Offers for Permanent Relinquishment of Firm Capacity in Conjunction with the Momentum Expansion Project As a part of the Momentum Expansion Project ("Momentum"), Transcontinental Gas Pipe Line Corporation ("Transco") is soliciting offers for the permanent relinquishment of firm transportation capacity on the Transco system from Station 65 in Zone 3 or mainline receipt points in Zone 4 to delivery points in Zone 4 or Zone 5 at or upstream of Station 165. Subject to certain conditions, Transco intends to combine such relinquished capacity with newly constructed capacity in order to render service under Momentum. Offers for capacity relinquishment may be made only for existing transportation services provided under Part 284(G) of the FERC's regulations. Valid offers must meet the following criteria: 1. The capacity offered must result in a reduction of the facilities otherwise required to serve the subscribing shippers under Momentum; 2. Inclusion of relinquished capacity in the project must result in a lower cost of service for the project than if additional facilities were constructed; 3. The remaining contract term for the relinquished capacity must not extend beyond the 15-year primary contract term of the Momentum service agreements; 4. Offers for permanent relinquishment will not be accepted from shippers who nominate for service under Momentum; 5. Offers must identify the specific contract(s), MDQ, receipt and delivery point(s) in each contract at which delivery point entitlements (DPEs) will be reduced as a result of the relinquishment of firm capacity to those points. Shippers will not be permitted to relinquish a geographic portion of any contract; and 6. Offers must be unconditional, binding and irrevocable. Such offers must be received by Transco no later than 5:00 PM CST on Friday, March 30, 2001. After receipt of offers to relinquish capacity, Transco will finalize the design of the facilities to be constructed to render service under Momentum. Parties that submit offers to relinquish capacity will be notified as to whether the offer complied with the specifications set forth herein and whether the capacity will be accepted and utilized to render service under Momentum. If more capacity is offered than is needed under Momentum, preference will be given to those offers that reduce the cost of Momentum to the greatest degree. In the event of a tie, preference will next be given to those offers that have the shortest remaining term for the capacity relinquished. Shippers with relinquished capacity that is included in Momentum will retain all rights and responsibilities set forth in their Service Agreement(s), Rate Schedule FT and the General Terms and Conditions of Transco's FERC Gas Tariff until Momentum firm transportation service commences through the relinquished capacity. The relinquishing shipper's service agreements will be terminated or reduced effective on that day. Transco's acceptance of relinquished capacity is and will be subject to the following: 1. Execution and delivery by the shipper to Transco of an agreement to permanently relinquish such firm transportation capacity (such agreement to be provided by Transco); 2. Execution and delivery of an amendment to the shipper's firm transportation contract reflecting any modifications resulting from the relinquishment of a portion of the service related to such capacity, if applicable; 3. Execution and delivery of firm service agreements by shippers subscribing to all capacity to be made available under Momentum; 4. Shippers relinquishing capacity will file in support of Transco's applications for a certificate of public convenience and necessity authorizing Momentum; 5. Receipt of a FERC certificate authorizing the proposed Momentum facilities and service (including approval of shipper's capacity relinquishment) in a form acceptable to Transco in its sole opinion; and 6. Placing the entire Momentum project into service. In the event that Momentum does not go forward for any reason, including, without limitation, the FERC authorizations being granted in a form unacceptable to Transco, the capacity relinquishment shall not be effectuated and all related agreements shall be null and void. Parties desiring more information regarding this announcement should contact Helen Laughlin at 713/215-3773 or Orlando Alvarado at 713/215-3378. - C.DTF