Subject: Bullets 7/28
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 27 Jul 2000 08:22:00 -0700 (PDT)

Caithness - Confidentiality agreements were sent this week to the project 
developers of the 550Mw Big Sandy project in northwest Arizona.  Work 
continues on developing pipe lateral costs and environmental impact 
statements.

KN Energy - Their current transport contract to the West has a ROFR that 
expires 7/31.  The 20,000 MMBtu/d capacity is split evenly between Topock and 
Needles (KN is not currently flowing anything to Topock) at a rate of 
$.13/MMBtu.  Even with the Topock space, the total capacity could be worth 
something in the low to mid $.20's.  KN would also like to keep the ROFR 
language but this could only occur with a max rate deal for a term of one 
year or longer.  We should have any offer from KN by Monday 7/31.

Operations - we temporarily lost a compressor for approximately 1 hour at 
Station 2 on Thursday.  There was minimal throughput impacted.  An unusual 
"knock" sound has also been coming from one of the units at Station 4.  High 
western flow is taking its toll on equipment.

August Capacity - West demand is expected to be robust for August (higher 
than June) with high temperatures combined with lower hydro-generation 
capacity available from the Northwest (per CERA).

El Paso / Blanco Mis-Measurement - A letter was drafted this week for Stan's 
signature for delivery to El Paso's management.  The letter outlines the 
circumstances and chronology of events leading up to our meeting with El Paso 
in June.  The letter requests a payback of all the gas volume.  Stan has 
opted not attach a copy of the lawsuit filing to the letter. 

Reliant - Extended their Flex Firm (Primary Receipt and Primary Delivery at 
the West Texas Pool) from July to August 2000 for $.03, but increased volumes 
from 10,000 MMBtu/day to 20,000 MMBtu/day. 

ENA / Citizens Utilities - The new Citizens interconnect for the Griffith 
power plant was scheduled to be purged and filled with gas this week.  As 
manager of Citizen's transport agreement, ENA has notified us verbally they 
will request some or all of the 25,000 MMBtu/d of primary delivery capacity 
for that point.  As soon as we receive their request in writing, we will 
discuss strategy with legal and regulatory to evaluate all TW's options.

Duke Atoka-Crawford Proposal - For a $750,000 construction contribution from 
TW, Duke is willing to build out part of their gathering system to unload 
20,000 MMBtu/d off the Atoka lateral and re-deliver gas to TW's Crawford 
lateral.  TW would receive a 5 year FT at a rate of $.05 plus actual fuel.  
Oasis would be the primary delivery point.  This project has the added 
benefit of allowing TW to sell incremental space on the Atoka lateral.  

In addition, Duke is proposing to install additional compression to deliver 
up to 40,000 MMBtu/d of incremental volume to TW off the Zia plant.  In 
exchange, TW would provide a discounted $.035 IT transport rate for a two 
year term.  The Zia gas would flow through a new tap into TW's high pressure 
30" line.   This project has a fuel saving benefit to TW by eliminating one 
stage of compression from the low pressure system.