Message-ID: <22524697.1075844068393.JavaMail.evans@thyme>
Date: Thu, 24 Aug 2000 10:25:00 -0700 (PDT)
From: kevin.hyatt@enron.com
To: bullets@enron.com
Subject: Bullets 8/25
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El Paso Field Services - EPFS has agreed to go forward on a new interconnect 
with TW in Eddy County, NM.  The size of the new interconnect will be 40,000 
MMBtu/d.  EPFS has agreed to pay $165,000 towards the cost estimate of 
$280,000 as well as commit 12,500 MMBtu/d throughput for a period of 2 
years.  Facility Planning is opening a new work order and we have begun 
drafting the Interconnect Agreement and the OBA for the new point.  The point 
should be active in 60 - 90 days.

Arizona Public Service - has still not signed the Transport Request for the 
14,000 MMBtu/d April - October 2001 capacity.  The current spread is $0.375 - 
$0.40.  

Red Cedar - has finally decided on their transport volume under our new 5 
year agreement.  Contract documentation is being prepared.

Sempra - has again exercised their option under their Gallup contract for 
21,500 MMBtu/d Permian to California for 1 year starting 11/1/01. The 
contract rate is $0.30 plus fuel.

Texaco is moving up to 100,000 MMBtu/d from PG&E Topock to Mojave starting 
8/21 through 10/31/00.  TW collected an incremental $.025/MMBtu for this move 
or approximately $160,000.

El Paso Outage-
 Current reports are the Office of Pipeline Safety is demanding El Paso hydro 
test, X-ray and ultrasonic test all 330 miles of pipe that is currently out 
of service due to last weekend's explosion.  It appears the 1 Bcf/d capacity 
to California may be off-line for up to one month.  

Related Developments
  --SoCal released capacity on El Paso for October 2000 to Dynegy at a 
reservation charge of $1.00/MMBtu.
  --Volume on various TW interconnect points has picked up on the east end 
including the new NGPL Winkler point.
  --We are receiving incremental volume from El Paso at Window Rock and 
collecting a portion of the market premium. 

Transport Options - a working group meeting with customers has been scheduled 
for Thursday August 31.  The objective will be to get everyone comfortable 
and build a coalition of support behind our new Options Tariff filing.

Burlington Resources - We held a conference call with John Hinton, Marketing 
Director, regarding the current operation of the Val Verde plant.  Our data 
indicates,with the exception of a few T-5 temperature limit days, TW has been 
able to accept over 98% of the gas nominated by the plant.  In addition, for 
the last 2 years, the plant has been delivering gas with CO2 in excess of our 
specs.  We agreed our latest amendment draft could use some stronger language 
in terms of TW's obligations beyond a "best efforts" basis.   John indicated 
a willingness to work together as they were trying to schedule a delivery of 
215,000 MMBtu to us for Hub delivery.   We agreed to talk again next week 
once the volume test was complete.