Message-ID: <6438477.1075860848787.JavaMail.evans@thyme>
Date: Thu, 1 Feb 2001 20:16:00 -0800 (PST)
From: susan.scott@enron.com
To: jeffery.fawcett@enron.com, steven.harris@enron.com, kevin.hyatt@enron.com, 
	lorraine.lindberg@enron.com, tk.lohman@enron.com, 
	michelle.lokay@enron.com
Subject: ROFR Q&A
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
X-From: Susan Scott <Susan Scott/ET&S/Enron@ENRON>
X-To: Jeffery Fawcett <Jeffery Fawcett/ET&S/Enron@ENRON>, Steven Harris <Steven Harris/ET&S/Enron@ENRON>, Kevin Hyatt <Kevin Hyatt/ET&S/Enron@Enron>, Lorraine Lindberg <Lorraine Lindberg/ET&S/Enron@ENRON>, TK Lohman <TK Lohman/ET&S/Enron@ENRON>, Michelle Lokay <Michelle Lokay/ET&S/Enron@Enron>
X-cc: 
X-bcc: 
X-Folder: \Kevin_Hyatt_Mar2002\Hyatt, Kevin\TW\Market Team
X-Origin: Hyatt-K
X-FileName: khyatt (Non-Privileged).pst

The question came up yesterday whether a shipper who contracts for firm capacity for a year or more at a negotiated rate is entitled to a ROFR.

I've done some checking, and the answer is no, a negotiated rate shipper that entered into a contract after March 27, 2000 does not automatically get ROFR rights.   This was clearly stated by FERC in Order No. 637-A.   It does not matter whether the negotiated rate is above the maximum tariff rate; the contract is still not considered to be "at maximum rates" for ROFR purposes.

As you know, our tariff does allow us to mutually agree to include ROFR rights in a contract with a shipper who does not automatically get ROFR rights.  

Any questions -- let me know.