Message-ID: <32516939.1075840524996.JavaMail.evans@thyme> Date: Thu, 28 Feb 2002 08:23:19 -0800 (PST) From: chris.germany@enron.com To: cyndie.balfour-flanagan@enron.com Subject: Deal 1199439 - sale of Dawn gas to MidAmerican Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Germany, Chris X-To: Balfour-Flanagan, Cyndie X-cc: X-bcc: X-Folder: \ExMerge - Germany, Chris\Sent Items X-Origin: GERMANY-C X-FileName: chris germany 6-25-02.pst Per my discussion with Dave Evans - MidAmerican agreed to pay ENA for this gas and will not net this deal with any other deal. We also discussed doing this deal under a GISB agreement but if we have some other post-bankruptcy agreement that we can trade under then that's fine with me. You and Stacy can decide if we need to put any of this information on the confirm. Stacy also has some comments below pertaining to the GST tax that should may need to be included in the confirm. I did not discuss the GST tax, I felt fortunate that someone would do business with me. -----Original Message----- From: Germany, Chris Sent: Thursday, February 28, 2002 8:53 AM To: Mann, Kay; McMichael Jr., Ed; Concannon, Ruth; Parks, Joe Cc: Price, Wade R.; Dickson, Stacy E.; Olinger, Kimberly S.; Polsky, Phil; Boyt, Eric; Richardson, Stacey Subject: RE: Enbridge Consumers' Gas Park & Loan Just sold 10,000 MMBtu per day at Dawn to MidAmerican Energy Company at $2.47 for March. My contact at MidAmerican is Dave Evans (515-281-2698). Dave said he was using Apr Nymx + $.05 to calculate his price. -----Original Message----- From: Germany, Chris Sent: Wednesday, February 27, 2002 4:30 PM To: Mann, Kay; McMichael Jr., Ed; Concannon, Ruth; Parks, Joe Cc: Price, Wade R.; Dickson, Stacy E.; Olinger, Kimberly S.; Polsky, Phil; Boyt, Eric Subject: RE: Enbridge Consumers' Gas Park & Loan Update Robin and I are waiting to hear back from all of the following company contact Reliant Energy Services Inc. Sue Cozad 989-687-9246 low probability Enbridge Gas Services Inc. Dan White 403-508-3184 new counterparty - low probability MidAmerican Energy Company Dave Evans 515-281-2698 good prospect CMS Marketing, Services and Trading Company Scott Biscoe 713-230-7286 low probability El Paso - no interest. Left messages with Duke Energy Marketing Ltd. Steve Butler 403-297-9840 TXU Energy??? David Jones -----Original Message----- From: Dickson, Stacy E. Sent: Wednesday, February 27, 2002 3:34 PM To: Mann, Kay; Germany, Chris Cc: Price, Wade R. Subject: RE: Enbridge Consumers' Gas Park & Loan The Goods and Services Tax (GST) in Canada is levied on sales of gas at a delivery point in Canada and where the gas will not be exported from Canada. The buyer pays the seller the amount of the GST which is a per cent of the purchase price. The seller, in turn, remits the amount of the GST to the appropriate Canadian authority. In structuring the deal, be sure that you make it clear that the Contract Price does not include the GST. If the gas it to be exported the buyer needs to notify that the gas is "zero-rated" so it is not subject to the GST. Wade - Do you know who in settlements is handling GST payments? I hope we still have someone who can do that. Please let me know if you have any other questions. Stacy x3-5705 -----Original Message----- From: Mann, Kay Sent: Tuesday, February 26, 2002 7:02 PM To: Dickson, Stacy E. Subject: FW: Enbridge Consumers' Gas Park & Loan Do you know the answer to the tax question, or at least who to ask? Thanks, Kay -----Original Message----- From: Germany, Chris Sent: Tue 2/26/2002 5:46 PM To: Germany, Chris; McMichael Jr., Ed; Concannon, Ruth; Boyt, Eric; Garza, Maria; Polsky, Phil; Dicarlo, Louis; Olinger, Kimberly S.; Parks, Joe; Mann, Kay Cc: Fowler, Kulvinder; Schumack, Sherlyn Subject: Enbridge Consumers' Gas Park & Loan Opps. Didn't mean to hit send it just yet. Much better now. -----Original Message----- From: Germany, Chris Sent: Tuesday, February 26, 2002 5:39 PM To: McMichael Jr., Ed; Concannon, Ruth; Boyt, Eric; Garza, Maria; Polsky, Phil; Dicarlo, Louis; Olinger, Kimberly S.; Parks, Joe; Mann, Kay Cc: Fowler, Kulvinder; Schumack, Sherlyn Subject: Enbridge Consumers' Gas Park & Loan Today we discovered that ENA has 310,000 MMBtu parked with The Consumers' Gas Company Ltd. (an affiliate of Enbridge Inc.) at Dawn that needs to be withdrawn by March 31, 2002. Dan White (403-508-3184) at Enbridge faxed me their confirmation. According to Dan, this gas was parked in May and June 2001. Per Enbridge's confirmation, "Customer shall pay Enbridge a fee of $.22 US/MMBtu...prorated over 12 months". The confirmation makes it clear that March withdrawals are interruptible. Dan didn't know if ENA has paid the fee but he is letting ENA take this gas for March!!! So far have not been able to find a deal ticket in Sitara or tagg that applies to this deal. Tomorrow, I will get bids from some of the companies ENA has done business with in the past at Dawn. Before I sell the gas, I will 1. verify the creditworthiness of the company we are selling to 2. make sure the company we are selling to agrees to pay us for the gas and doesn't net this with some other item. Kay, the point we are selling the gas at is Dawn which is in Canada. Are there any special tax issues to address? Any comments or questions? Listed below are some of the companies ENA has done business with at Dawn AEP Energy Services, Inc. Aquila Canada Corp. BP Canada Energy Company Cargill Energy Trading Canada, Inc. CMS Marketing, Services and Trading Company CoEnergy Trading Company Consumers Energy Company Consumers Gas Company Ltd., The Coral Energy Canada Inc. Duke Energy Marketing Limited Partnership Duke Energy Trading and Marketing, L.L.C. Dynegy Canada Inc. Dynegy Canada Marketing and Trade, a division of Dynegy Canada Inc. El Paso Merchant Energy, L.P. Engage Energy Canada L.P. Nexen Marketing PanCanadian Petroleum Limited PG&E Energy Trading, Canada Corporation PG&E Energy Trading-Gas Corporation Phibro Inc. Reliant Energy Services, Inc. Sempra Energy Trading Corp. TXU Energy Trading Canada Limited WPS Energy Services, Inc.