Message-ID: <9283694.1075842217370.JavaMail.evans@thyme> Date: Tue, 27 Jun 2000 04:41:00 -0700 (PDT) From: gary.lamphier@enron.com To: dan.hyvl@enron.com Subject: Shell contract Cc: gary.lamphier@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: gary.lamphier@enron.com X-From: Gary W Lamphier X-To: Dan J Hyvl X-cc: Gary W Lamphier X-bcc: X-Folder: \Dan_Hyvl_Dec2000_June2001\Notes Folders\All documents X-Origin: HYVL-D X-FileName: dhyvl.nsf Dan, At bottom of page is first run at contract. Middle is changes to bottom. Top is summary. Call if you have questions. 1) 50,000 a day firm @ Index (.01) 2) 0-60,000 first of the month nomination must be received prior to the end of bid week (3 business days prior to end of month). Also priced @ Index (.01) 3) Swing: First 20,000 mmbtu/d priced @ GD Mid +.04 two days after From 20,001 - 50,000 mmbtu/d priced @ GD Mid+ .10 two days after 4)Buyback: Any volumes flowing less than first of month nom will be bought back on a daily basis @ Katy Mid two days after. Gary, 1. Backup swing - I can live with a two-tiered pricing structure for no-notice backup swing service. Just for clarification the tiers and pricing would be as follows: a) 0 - 20,000 MMBtu/d at Gas Daily, Houston Ship Channel, Midpoint, two days after flow plus $0.04/MMBtu and, b) 20,001 - 50,000 MMBtu/d at Gas Daily, Houston Ship Channel, Midpoint, two days after flow plus $0.10/MMBtu. 2. Firm Gas - The flexibility of the firm gas delivery is for plant maintenance only. I can drop the maximum volume to 110,000 MMBtu/d but that's it. Given our current maintenance schedule, the expected demand and your nominated volume would be as follows: Month Deer Park Demand HPL Nomination July 2000 207,000 MMBtu/d 105,000 MMBtu/d August 207,000 105,000 September 207,000 105,000 October 190,000 95,000 November 210,000 110,000 December 210,000 110,000 January 2001 145,000 70,000 February 165,000 80,000 March 213,000 110,000 April 108,000 50,000 May 108,000 50,000 June 213,000 110,000 If you do the math, the total HPL nomination volume is 33,485,000 MMBtu for a daily average take of 91,700 MMBtu/d. The uncertainty is that the maintenance schedule is dynamic and the above numbers are subject to revision. That's why we need the flexibility. 3. Curtailment/Interruption - My expectation is that this is a firm gas supply. If I need to curtail and/or interrupt, it would trigger the buyback option and would count against my annual average. However, if you curtail and/or interrupt the buyback option would not be trigged and my annual average would be adjusted accordingly. 4. Nominations - your definition of bidweek is perfectly acceptable. Can I make a nomination of 105,000 MMBtu/d today? ---------------------- Forwarded by Gary W Lamphier/HOU/ECT on 06/27/2000 11:34 AM --------------------------- "Shankster JL (Luther)" on 06/13/2000 04:43:18 PM To: "'Lamphier, Gary'" cc: "Coute, Sonia" , "Harrison, Rusty" , "Kendrick, Katrina" , "King, Alan" , "Martin, William" , "Moseley, Richard" , "Osterwisch, Glenn" , "Buller, Thomas" , "Carter, John" , "Ricks, Ruth" Subject: Revised Shell Deer Park Confirmation - HPL Gary, Based on previous conversations, here is a revised confirmation outlining the terms of the award for gas supply to Deer Park. Will work to schedule a meeting at Deer Park to begin discussions on the HPL-South meter station revisions on 6/19/2000. Will let you know as soon as final arrangements can be made. <> If you have any questions or do not agree to the terms of this confirmation, please contact me immediately. J. Luther Shankster Energy & Utilities Planning Phone: 713/241-4851 Fax: 713/241-4599 E-Mail: jlshankster@equiva.com Home Page: http://rsweb - revised HPL.doc