Subject: Segmentation And Order 637 - Houston Meeting
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 24 Jul 2000 01:13:00 -0700 (PDT)

Hi Gang.  Transco has a shipper meeting next week in the afternoon.  I will 
probably be out all week.  I believe Scott Goodell and Beverly should go and 
take anyone else that would like to attend.

---------------------- Forwarded by Chris Germany/HOU/ECT on 07/24/2000 08:05 
AM ---------------------------

"CustomerNotices, WGPHOU" <[email-masked]> on 07/21/2000 
02:03:48 PM
To: "Alatorre, Hector" <[email-masked]>, "Ambler, Margie" 
<[email-masked]>, "Avioli, James" 
<[email-masked]>, "Blodgett, Kerry" 
<[email-masked]>, "Bowman, Terri" 
<[email-masked]>, "Buhrke, Cathy" <[email-masked]>, 
"Casey, Melissa" <[email-masked]>, "Catlett, Laurie" 
<[email-masked]>, "Conley, Allan" 
<[email-masked]>, "Cordray, Stan" <[email-masked]>, 
"Cortez, Diama" <[email-masked]>, "Cox, Ann" 
<[email-masked]>, "Doyle, Ronald" <[email-masked]>, 
"Eaton, John" <[email-masked]>, "Fitch, Terry" 
<[email-masked]>, "Flores, Gloria" 
<[email-masked]>, "Gallerano, John" 
<[email-masked]>, "Gensler, Quentin" 
<[email-masked]>, "Hargrove, Nancy" 
<[email-masked]>, "Heiser, Suzanne" 
<[email-masked]>, "Helburg, Charles" 
<[email-masked]>, "Higginbotham, Keith" 
<[email-masked]>, "Immer, Ingrid" 
<[email-masked]>, "Kelley, James" <[email-masked]>, 
"Kelley, Nancy" <[email-masked]>, "King, Mable" 
<[email-masked]>, "Kleiner, Margaret" 
<[email-masked]>, "Laird, Mary" <[email-masked]>, 
"Laughlin, Helen" <[email-masked]>, "Laurel, Liz" 
<[email-masked]>, "Lindloff, Monty" 
<[email-masked]>, "Loggins, Kenneth" 
<[email-masked]>, "Lowrey, Roseanne" 
<[email-masked]>, "McCauley, Laurie" 
<[email-masked]>, "Mingen, Michele" 
<[email-masked]>, "Mott, Louella" 
<[email-masked]>, "Nguyen, Michelle" 
<[email-masked]>, "Payne, Leon" <[email-masked]>, 
"Prevott, Rose" <[email-masked]>, "Prodoehl, Paul" 
<[email-masked]>, "Ramos, J Linda" 
<[email-masked]>, "Ramos, Mary" <[email-masked]>, 
"Robertson, Constance" <[email-masked]>, "Rush, Russell" 
<[email-masked]>, "Sansom, William" 
<[email-masked]>, "Schatzman, Rosemary" 
<[email-masked]>, "Scott, Mark" 
<[email-masked]>, "Shaull, Barbara" 
<[email-masked]>, "Silvas, Elizabeth" 
<[email-masked]>, "Smith, Elsie" 
<[email-masked]>, "Stevens, Paula" 
<[email-masked]>, "Swanson, Debbe" 
<[email-masked]>, "Taormina, Victoria" 
<[email-masked]>, "Taylor, Charles" 
<[email-masked]>, "Taylor, Janice" 
<[email-masked]>, "Thornton, Suzanne" 
<[email-masked]>, "Wahlstrom, Scottie" 
<[email-masked]>, "Walleck, Lynn" 
<[email-masked]>, "Watson-Combre, Cassandra" 
<[email-masked]>
cc:  
Subject: Segmentation And Order 637 - Houston Meeting

July 21, 2000

To: All Operators, Producers, Shippers and Customers on the
Transcontinental Gas Pipe Line System (Transco)

RE: Modifications to Capacity Release Processes and Segmentation
and Order 637 Compliance filings

On June 30, 2000 Transco made a compliance filing with the Federal
Energy Regulatory Commission (FERC), in Docket No. RP00-17-000.
This filing proposed several changes to the Capacity Release and
capacity segmentation procedures that are to become effective for
business beginning gas day September 1, 2000.  A customer meeting
will be held in Washington DC on August 1, 2000 at 10:00 a.m.
(please see the Transit posting dated July 14, 2000) and in Houston
on August  3, 2000 at the Williams Tower, Level 5, Dining Room C
at 1:00 p.m.  The Houston meeting will address both the segmentation
changes and highlights of Transco's Order 637/637A Compliance filing,
with segmentation being discussed from 1 p.m. - 3 p.m. and the
Order 637 discussed from 3 p.m. - 5 p.m.  In order to finalize
the appropriate arrangements for the meeting, Transco requests
that you notify Liz Laurel at 713-215-2069 by Monday,
July 31, 2000.

There are two key elements to the proposed changes
in Docket RP00-17-000:
1.  Use of "Master" FT-R Commodity Contracts
Transco will no longer use the "Master" Commodity Form of Service
Agreement for reservation rate capacity releases.  Historically,
Transco has required capacity release shippers to execute two FT-R
contracts upon their initial acquisition of released capacity:
the FT-R Demand contract and the FT-R "Master" Commodity contract.
With subsequent reservation rate releases, shippers were only
required to execute new FT-R Demand contracts.  Each FT-R Demand
contract was specific to a capacity release deal and the FT-R
"Master" Commodity contract was used for all nomination and
commodity billing purposes.

Effective with business for gas day September 1, 2000, Transco will
require shippers acquiring capacity through reservation rate
capacity releases to execute and nominate transportation on each
new FT-R Demand contract.  This will require new activities to be
created for each capacity release contract.  For any capacity release
deals that span the August 31 - September 1 period, nominations for
gas day August 31, 2000 will be on the existing "Master" Commodity
contract and nominations for gas day September 1, 2000 will be new
transactions on the FT-R Demand contract.  Additionally, all
commodity billing will be done on the FT-R Demand contract.

Transco will send a "Notice of Termination" to all FT-R "Master"
Commodity contract holders identifying the contract that will
terminate as well as a list of all of the FT-R Demand contracts
that will continue to be effective in September.

2. Limiting nominations within a segment
Consistent with FERC's ruling in this docket and consistent with
similar rulings on Tennessee and Texas Gas, Transco will limit the
quantity of gas that can be scheduled  IN ANY SEGMENT of the
pipeline to the original firm contracted capacity.
Transco will aggregate all nominations under an original FT
contract and any related capacity release contracts
(or subsequent re-releases) to ensure that the total scheduled
quantity for the family of contracts is within the original
contractual entitlement.  If nominations for the family of
contracts exceed the original entitlement, nominations using
any secondary capacity rights will be considered as secondary
nominations and subject to cut on a pro-rata basis.

As stated above, Transco intends to implement these changes for gas
day September 1, 2000.  In the event systematic changes cannot be
completed or the FERC directs Transco to modify its planned
implementation, Transco will notify customers via TRANSIT of any
business practice changes as well as the expected implementation
timeline.

If you have any questions concerning these changes, please contact
your Customer Services Representative or Scheduling Analyst.

 - C.DTF