Subject: Red Rock contract PRIVILEGED AND CONFIDENTIAL
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Tue, 27 Mar 2001 07:59:46 -0800 (PST)

In response to a concern Stan brought up yesterday, here is a revised version of the Red Rock form agreement.  It includes the following language:

If the Rate is invalidated by a) the FERC's modification of the rules, regulations or policy applicable to Transwestern's negotiated rate authority under the Alternative Rates Policy Statement or b) any order, legislation, or other action by a governmental authority, the transportation rate hereunder shall be the maximum rate set forth in Transwestern's tariff, effective on the date such FERC order or other governmental action is final, except that if the currently effective maximum rate at the time of such invalidation is lower than the Rate, this Agreement and the FTS-1 Agreement shall be terminable at Transwestern's option, as of the date such FERC order or other governmental action is final.

The language appears in redlining in the attachment.  This is to provide a starting point for negotiations.  

Jeff, Steve asked me to draft slightly different language for the Calpine deal you've been working on; see the attachment below.