Message-ID: <15758462.1075842241402.JavaMail.evans@thyme> Date: Thu, 12 Apr 2001 23:42:00 -0700 (PDT) From: dan.hyvl@enron.com To: ellen.wallumrod@enron.com Subject: Re: Eastern New Mexico Gas Company Cc: kim.ward@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: kim.ward@enron.com X-From: Dan J Hyvl X-To: Ellen Wallumrod X-cc: Kim Ward X-bcc: X-Folder: \Dan_Hyvl_Dec2000_June2001\Notes Folders\All documents X-Origin: HYVL-D X-FileName: dhyvl.nsf Ellen, I have generated the attached for Kim Ward. I will let you know if the counterparty elects to sign. Ellen Wallumrod@ENRON 04/03/2001 11:16 AM To: Dan J Hyvl/HOU/ECT@ECT cc: Kim Ward/HOU/ECT@ECT Subject: Re: Eastern New Mexico Gas Company Dan, As the confirmation will have so much special language and conditions and it is a long-term trade, I would prefer if someone in Legal wrote it up. Would that be OK Dan ? Regards, Ellen Dan J Hyvl@ECT 04/03/2001 10:02 AM To: Kim Ward/HOU/ECT@ECT cc: Ellen Wallumrod/NA/Enron@ENRON Subject: Re: Eastern New Mexico Gas Company Kim, We currently have a Master with Eastern New Mexico Natural Gas Association, Inc. (Contract No. 96009607) therefor, the Confirm Desk can do the confirm once it is put in the system. Ellen, Do you agree? Kim Ward 04/03/2001 09:40 AM To: Dan J Hyvl/HOU/ECT@ECT cc: Subject: Re: Eastern New Mexico Gas Company Dan, Thanks for looking at this for me. I did remove the phrase you mention in number 1 below. As for a volume cap, I don't think that one is necessary in this case. Their TW contract limits them to 1000 MMBtu/day. Any prices that are fixed will not include TW transport charges. Thanks again, Kim ps, once their board approves this term sheet, we will need to do a confirmation. Will this be generated by you or when the deal is entered into the system? Dan J Hyvl 04/02/2001 08:55 AM To: Kim Ward/HOU/ECT@ECT cc: Subject: Re: Eastern New Mexico Gas Company Kim, I have reviewed your term sheet and have the following questions. 1. Under Term, you have included the phrase "with annual redetermination" however I find no redetermination language in the Price section. I would suggest that the phrase be deleted. 2. Under Quantity, you indicate there expected volumes, however, we need to put some cap on the maximum, With a 5 year term, we should offer some maximum such as 200% of the expected volumes. Any thoughts relating to a cap? 3. Under Price you indicate that the price could be changed to a Fixed Price, I assume that you do not intend to include the Transwestern transportation charges as a part of the Fixed Price. Is this correct? and if so, does the Fixed Price language need to be qualified? Otherwise, the term sheet appears okay. Dan Kim Ward 03/29/2001 03:52 PM To: Dan Hyvl cc: Subject: Eastern New Mexico Gas Company Dan, Attached is a term sheet that has been sent to Eastern New Mexico gas company to extend a four year deal that ends on April 30, 2001. Could you look into the confirmation for this transaction? They will be going to the board for approval at the end of next week so you have some time. Sorry to bombard you!! This one should be easy. Thanks, Kim