Subject: Re: Stranger's Gas Contract Discussion
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Fri, 11 Aug 2000 01:35:00 -0700 (PDT)

Looks good--one typo in bullet 4, I think "not addressing" should be "nor 
addressing."   Please bcc me and Mike on the final version.  Thanks df

   

	From:  Mary Kay Miller                           08/11/2000 08:02 AM

To: Mary Kay Miller/ET&S/Enron@ENRON
cc: Drew Fossum, Michael Moran/ET&S/Enron@ENRON, Mary Darveaux 

Subject: Stranger's Gas Contract Discussion

Here is my first draft on the bullets for Steve Winston:  Please comment 
asap.  

Steve, per your followup phone call, here is a bullet point summary of the 
issues discussed in regard to the counter proposal regarding the Stranger's 
Gas contract negotiation.  I do not have George Drakes email address, so 
could you please forward this to him.  

1)   Ethane reimbursement needs to be at a minimum 4%
       If there is incidental ethane extracted, in conjunction with propane 
NNG will be reimbursed with the propane 

2)  In regard to point on netting months,   NNG does not agree with sentence 
one, ok with second sentence

3)  In regard to point on netting products,  NNG does not agree with this.  
This was not the intent nor the practice until KN commenced and is the issue 
being discussed in regard to the audit of the Stranger's Gas reimbursement.  
Per the bid package, Northern is requesting reimbursement by product, but 
does realize that it may receive zero for certain products after 
reimbursement has occurred for others.  

4)  In regard to point on reimbursement of Btu's,  NNG, on behalf of its 
customers, must be kept whole for the volumes.  The amount related to the 
Stranger's gas contract needs to be kept whole.  We are not resolving not 
addressing the measurement issue in the discussion of the Stranger's gas 
contract.

5)  The contract to be utilized is the pro forma included in the Bid package, 
however, Oneok is free to "mark up" with proposed changes to be specficially 
discussed.  All parties that participated in the bid process have utilized 
this contract, not the existing one. (The "mark up" is not to be a wholesale 
delete with the old contract language inserted.)

6)  In the event we are unable to reach agreement on the Stranger's Gas 
contract, NNG requests in writing an assurance of how Oneok is going to 
modify its facilities etc, to assure that it will not unlawfully take liquids 
that belong to others.  

7)  Agreed to meet in Omaha on Sept 6th starting at 9:00 am.