Message-ID: <14394917.1075860848831.JavaMail.evans@thyme>
Date: Fri, 26 Jan 2001 14:00:00 -0800 (PST)
From: tk.lohman@enron.com
To: kevin.hyatt@enron.com
Subject: REVENUE!
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---------------------- Forwarded by TK Lohman/ET&S/Enron on 01/26/2001 10:06 AM ---------------------------
   
	  From:  TK Lohman                           01/24/2001 01:59 PM	
		


To:	Jan Moore/ET&S/Enron@ENRON, Pallavi Goradia/Corp/Enron@ENRON
cc:	 

Subject:	REVENUE!

Sempra's K#27293 has been amended for April through October of 2001. The amended rate is $0.3050 revised from $0.2850 for this time period.  The contract MDQ is 49,000 mmbtu/day--14,000 mmbtu/day at PG&E Topock and 35,000 mmbtu/day at Socal Needles.  TW has agreed to move their primary delivery of 14,000 mmbtu/day from PG&E Topock to SW Gas for an incremental $0.07.  The weighted average rate for the contract was an incremental $0.02 or a total of $.3050.

Sempra has also negotiated a true Daily Firm contract for the month of February 2001. 

Volume:  15,000 mmbtu/day
Path:  5,000 mmbtu/day EOT to Socal Needles
            10,000 mmbtu/day SJ Blanco to Socal Needles

Rate for the 5,000 mmbtu/day coming from EOT:  Socal Gas Daily minus El Paso Permian Gas Daily minus Fuel minus $.50.
On 1/25/01 this would equate to  $6.95 - (.045) - $.34 - .50 = $6.155 * 28 days * 5,000 mmbtu/day = $861,700

Rate for the 10,000 mmbtu/day coming from Blanco :  Socal Gas Daily minus TW Blanco Gas Daily minus Fuel minus $.50.
On 1/25/01 this would equate to $6.95 - (.25) - $.32 - .50 = $6.38 * 28 days * 10,000 mmbtu/day = $1,786,400.

This is a true Daily Firm.  Sempra will be awarded the 15,000 mmbtu/day on a daily basis based on the Socal Window.  If the delivery cannot be made to Socal Needles, the revenue should not be recognized.  I would recommend accounting for this on a day-to-day basis.

Please let me know if you have any questions.