Message-ID: <27741551.1075844139694.JavaMail.evans@thyme>
Date: Fri, 19 Jan 2001 01:59:00 -0800 (PST)
From: kevin.hyatt@enron.com
To: bullets@enron.com
Subject: TW Bullets 1/19
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Capacity Marketing - TW completed two new long-term Index-to-Index 
transportation contracts this week.  Dynegy executed 35,000 MMBtu/d for 
calendar year 2003 from San Juan to the California Border and Calpine signed 
up for 14,000 MMBtu/d under similar terms.  In addition, Dynegy executed two 
short term Index-to-Index contracts; one month, 13,500 MMBtu/d for November 
2001, and 21,500 MMBtu/d for November - December 2002.   Both short term 
deals are from San Juan to California.  Hedges have been established on all 
the contracts to minimize TW's price exposure to the market indexes.

In addition, BP/Amoco purchased two packages of space at max rates on the 
Ignacio to Blanco route.  They purchased 55,000 MMBtu/d for calendar 2002 and 
20,000 MMBtu/d for 2003.   With the exception of a small package of Permian 
to Cal. border in November 2001, all available firm transportation flowing 
west has now been soldout on TW through the end of 2003.

Exxon/NALCO Enerflow -  Attended the Exxon presentation to operations this 
week on the proposed project to inject a drag reducing agent into several 
segments along TW's system.  Potential benefits include increasing our 
westward volume capacity by 5%, enhanced compressor efficiencies, and 
increased corrosion protection.  However, we are still waiting on the final 
results of the NNG Cunningham test segment.  Due to contamination issues on 
the mainline, we will likely begin by coating the 96 miles of San Juan 
lateral pipe sometime before the second quarter.

TransColorado - TC is evaluating outsourcing its entire back office 
operations (legal, regulatory, accounting, etc.) plus its marketing 
requirements to a third party provider.  ETS has prepared a draft 
qualification statement to be submitted by January 24.  TransColorado hopes 
to complete the transaction by late February.

Project McKinley  (Cal Border Peak Shaving) - Attended the marketing / 
operations meeting in Long Beach this week to discuss the potential of 
injecting natural gas liquids into TW's system to increase the Btu content of 
gas going into California.  This project has numerous logistic details to be 
worked not the least of which is where to site the injection point either 
upstream or downstream of Needles.  Other issues include railroad siding, NGL 
storage tanks, and possible contamination of downstream facilities.  A 
follow-up meeting is planned for the end of January.

Enron OnLine - TW marketing representatives attended Enron OnLine Training 
this week as we prepare to roll out capacity deals on the east end of TW's 
system.  The plan is to begin selling by February 1 three to five packages 
per day of 5,000 - 10,000 MMBtu/d.  As market demand picks up, we will expand 
the offerings.  

El Paso Field Services - the new interconnect with EPFS in Eddy County, NM is 
behind schedule.  We had previously committed to have TW's facilities 
finished by January 1, 2001.  On January 18, EPFS notified us that TW has 
quite a bit of work left to do before gas can flow.  (Among other things, the 
ROW has not yet been secured from the BLM in order for the electric poles to 
be installed).