Message-ID: <4069075.1075848294289.JavaMail.evans@thyme> Date: Fri, 8 Dec 2000 00:52:00 -0800 (PST) From: angie.zeman@enron.com To: chris.germany@enron.com, victor.lamadrid@enron.com, beverly.beaty@enron.com Subject: Dominion Transmission Gathering Charges Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Angie Zeman X-To: Chris Germany, Victor Lamadrid, Beverly Beaty X-cc: X-bcc: X-Folder: \Chris_Germany_Nov2001\Notes Folders\Appala X-Origin: GERMANY-C X-FileName: cgerman.nsf ---------------------- Forwarded by Angie Zeman/Corp/Enron on 12/08/2000 08:47 AM --------------------------- To: Angie Zeman/Corp/Enron@ENRON cc: Subject: Dominion Transmission Gathering Charges FYI ---------------------- Forwarded by Katherine L Kelly/HOU/ECT on 12/08/2000 07:46 AM --------------------------- From: Bryce Baxter 12/08/2000 08:15 AM To: Katherine L Kelly/HOU/ECT@ECT cc: Subject: Dominion Transmission Gathering Charges FYI ---------------------- Forwarded by Bryce Baxter/HOU/ECT on 12/08/2000 08:14 AM --------------------------- From: John M Singer @ ENRON 12/08/2000 07:13 AM To: Wade R Price/HOU/ECT@ECT, Gloria G Barkowsky/HOU/ECT@ECT, LaShonda LaDay/Corp/Enron@Enron, Mary Theresa Franklin/HOU/ECT@ECT, Jeanne Wukasch/Corp/Enron@ENRON cc: Nelson Ferries/Corp/Enron@ENRON, Bryce Baxter/HOU/ECT@ECT, James T Javins/DUB/EES@EES, Heidi Griffith/DUB/EES@EES Subject: Dominion Transmission Gathering Charges On Thursday, December 7,2000, IOGA WV and Dominion Transmission (formerly CNG Transmission) announced that they have reached a five year agreement on gathering rates. Although this agreement is subject to FERC's approval, there should be no problem having FERC OK. This agreement becomes effective January 1, 2001. Under the agreement, Dominion WILL NOT invoice either the producer or his agent (i.e. ENA) for gathering or processing. Instead, Dominion will increase the gas retention percentages to cover the costs of both gathering and processing. They are: 1/1/2001 - 6/30/2003 7/1/2003 - 12/31-2005 Transmission Dry 0 0 Transmission Wet 3.91% 3.51% Gathering Dry 9.34% 9.34% Gathering Wet 13.25% 12.85% As of yesterday, Dominion was not sure exactly how they will communicate the production information to the producer and/or his agent. My guess is that they will send a monthly statement which willl have two volumes for each meter. The first volume will be the wellhead volume delivered to the meter (a gross volume) . This volume will be adjusted by the retention percentage which will equate to the sales volume (gross volume less gathering and/or processing). The sales volume will be the volume we will pay the producer for since it will be net of gathering and/or processing. There will be no additional charges. ENA will not be required send monies to Dominion. As additional information becomes available, I will forward. John