Message-ID: <19933817.1075844029771.JavaMail.evans@thyme> Date: Fri, 1 Sep 2000 04:08:00 -0700 (PDT) From: kevin.hyatt@enron.com To: bullets@enron.com Subject: Bullets 9/1 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Kevin Hyatt X-To: Bullets X-cc: X-bcc: X-Folder: \Michelle_Lokay_Dec2000_June2001_1\Notes Folders\All documents X-Origin: LOKAY-M X-FileName: mlokay.nsf El Paso Pipeline Update - The US Dept. of Transportation approved reinstating gas service for El Paso's Line 1100 damaged in the recent explosion. This brought 400 million cfd of capacity back on stream to the California border. The ruptured Line 1103 will not be repaired until further investigations have been completed. The availability of Line 1100 capacity had the following basis impact: Permian to California basis for October dropped from Monday by $1.30/MMBtu while November '00 - March '01 and April - October '01 narrowed by $0.43 and $0.37 respectively. Also, TW shippers are no longer using El Paso Window Rock as a receipt point on our system. Transport Options Program - Representatives from 7 companies comprising a majority of TW's larger shippers attended our workshop on this new tariff filing. All attendees were given in advance of the meeting a draft copy of the proposed filing for their review and comment. The TW Team (Jeff Fawcett and Susan Scott) did an outstanding job of preparing the material, answering questions, and anticipating shipper concerns related to this new service. The only serious objections raised by the customers were concerns related to: (1) potential abuses by marketing affiliates and (2) hoarding of option capacity by any one shipper. Among the solutions proposed were restricting Enron affiliates access to the program and limiting the volume of outstanding options any one shipper can hold. At the end of the meeting, we asked for final comments to be submitted to TW by next week in anticipation of filing the tariff with the FERC in mid-September. KN/Oneok Contract - We negotiated a 12 month max rate agreement with Oneok for 20,000 MMBtu/d of west flow capacity starting February 1, 2001. We also negotiated in the contract a provision whereby if Oneok releases any of the capacity above the max rate, then TW shares 50/50 in the incremental revenue. EOG Resources - We are negotiating a new transport agreement with EOG for incremental volume they could bring into TW's West Texas lateral. Initially, the volume was 4 - 5,000 MMBtu/d but now may be at least 15,000 MMBtu/d. EOG is reviewing the proposed interconnect and operating agreement. EOG has not typically held transport capacity on TW in the past. September Pipe Outage - We are trying to accommodate west flowing shippers whose transport will be cut from September 6-10 due to DOT testing on Transwestern. The plan is to facilitate the use of PG&E Market Center storage to supply west markets during the outage. Volume may be as high as 20 -50,000 MMBtu/d at an incremental rate for TW of $.05 -.08/MMBtu.