Subject: Gas Transportation Agreements
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Thu, 31 May 2001 03:38:00 -0700 (PDT)

Cathy,
 At the request of Mitch Dutton, I have reviewed the form of 311 and 
intrastate gas transportation agreements provided to AEP by Duke Energy 
Guadalupe Pipeline, Inc. and by EPGT Texas Pipeline, L.P.   As we discussed 
this morning, these agreements appear to be the standard form of agreement 
utilized by these counterparties.  Although I have no authority to approve 
them for execution by AEP, had they been provided to me for execution by HPL, 
I would approve them for execution.  
 Please note the Balancing and Penalties provision of the agreements for the 
charges which these parties could impose should receipts and deliveries get 
out of balance.  If time permitted I would suggest that these charges be 
negotiated to something closer to the actual costs incurred by the 
transporter.   However, it has been my experience that these parties are 
reluctant to change the standard form for standard transportation services.   
 No contract documents have been provided concerning the TXU Lone Star 
Pipeline.  The only documents faxed were two transportation services request 
forms.