Subject: Re: Heartland Invoice for March
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Wed, 21 Feb 2001 05:12:00 -0800 (PST)

I would recommend that once the trueup information is available and verified, 
a credit statement be prepared and forwarded to Heartland, such statement to 
provide that the credit statement is to be used in determining the next 
month's (April) prepayment.  I would not wire them the true-up amount so long 
as we have any reason to believe that they will continue to be in some level 
of operation requiring some level of gas purchases.  John, any comments.

	Charles Jacobs@ENRON
	02/21/2001 01:03 PM
		 
		 To: Dan J Hyvl/HOU/ECT@ECT, John Enerson/HOU/ECT@ECT, Patrice L 
Mims/HOU/ECT@ECT
		 cc: 
		 Subject: Re: Heartland Invoice for March

So what should the invoice look like for the March prepayment?  Should I just 
bill them the 1,500/day at the NX3+.34 next Monday; let them pre-pay that and 
then wire them whatever money is owed back to them after the trueup (probably 
sometime mid-April after the pipeline statements have been received and the 
volumes have been acutalized)?  Or does somebody want to estimate what the 
buyback volume and price would be so I can deduct that up front?
---------------------- Forwarded by Charles Jacobs/NA/Enron on 02/21/2001 
12:38 PM ---------------------------

Dan J Hyvl@ECT
02/21/2001 12:00 PM
To: John Enerson/HOU/ECT@ECT
cc: Charles Jacobs/NA/Enron@ENRON, Patrice L Mims/HOU/ECT@ECT 

Subject: Re: Heartland Invoice for March  

Chuck, The price obtained as the average of the closing price for the last 
three trading days for the month plus $0.34 is to be the price for the next 
month.  We need to give them a credit for the volumes that we purchase back 
due to their volume defaults in the month.  Our buyback price  is to be Gas 
Daily midpoint less $0.15 for the shortfall in volumes.  The $0.15 is the 
penalty for the default and the Gas Daily Midpoint price is what we purchase 
the shortfall back for; but remember if the Gas Daily Midpoint is higher that 
the Nx3, we use the Nx3 as the buyback price for the shortfall.  I know that 
you will not have  all of the information at the time you send them the 
invoice for the next month's prepayment, so you need to keep a schedule and 
trueup each month for the prior months activity.  

John and Patrice, Do you agree with the foregoing?

	John Enerson
	02/21/2001 11:33 AM
		
		 To: Charles Jacobs/NA/Enron@ENRON
		 cc: Dan J Hyvl/HOU/ECT@ECT, Patrice L Mims/HOU/ECT@ECT
		 Subject: Re: Heartland Invoice for March

Dan - please confirm for Dan that the pricing will be different after the 
last three trading days of the month for the NYMEX contract.  Dan - can you 
make sure you check with Patrice for this exact number so Chuck can send the 
invoice.  Thanks.

   

	From:  Charles Jacobs @ ENRON                           02/21/2001 10:59 AM

To: John Enerson/HOU/ECT@ECT
cc:  
Subject: Heartland Invoice for March

John,

When do you want me to send an invoice to Heartland so they can pre-pay for 
March gas?  I can bill the 1,500/day but I'll need the pricing.  Are we still 
going to use the NX3+.34 for March or do you want to use something else?  The 
NX3 will not be available for March until Monday so that would be the 
earliest I could send it using that price.

Let me know...
Chuck