Message-ID: <29513252.1075840503425.JavaMail.evans@thyme> Date: Fri, 17 May 2002 09:42:00 -0700 (PDT) From: rita.wynne@enron.com To: chris.germany@enron.com, ruth.concannon@enron.com Subject: Union Gas Limited - Synthetic Storage Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Wynne, Rita X-To: Germany, Chris , Concannon, Ruth X-cc: X-bcc: X-Folder: \ExMerge - Germany, Chris\Bankrupt\Transport\Union Gas X-Origin: GERMANY-C X-FileName: chris germany 6-25-02.pst This morning I called Union to inquire about an imbalance statement for Apr= il 2002 primarily because the statement that I received for April 2002 was = missing the park and loan balances for contract HUB210E14, HUB210E28 and HU= B210E29, totaling roughtly 1,461,431 mmbuts due Union. In turn, I was refe= rred to their Legal Dept. and spoke with Larry Fedchun (519-436-4690). He = informed me that because ENA owedUnion way in excess of the value of this g= as, they have decided to net this gas due them against everything that they= owed ENA. I asked how they valued this gas and he said they went through = several pricing models and scenarios yielding anywhere from $13MM to $16MM = and finally settled upon somewhere around $13MM as the value of the gas due= them on a volume of 2,528,557 mmtus (per the Mar. 2002 statement that show= ed the outstanding volumes). We are currently showing this gas in our syst= em as gas owed to Union and we are carrying it at a $0.00 value because it = was classified as synthetic storage. Please let me know your thoughts on t= his and how we need to proceed. If you need copies of any statements, plea= se let me know. Thanks, Rita