Message-ID: <14606315.1075844071696.JavaMail.evans@thyme>
Date: Fri, 15 Sep 2000 03:20:00 -0700 (PDT)
From: kevin.hyatt@enron.com
To: bullets@enron.com
Subject: Bullets 9/15
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PNM - The FERC accepted TW's new tariff filing for purchasing capacity on 
PNM's Blanco to Rio Puerco line!!!  The acceptance is conditioned by TW being 
limited to acquire this off-system capacity to the Apr-Oct period and we must 
file a report with the Commission at the end of the 2 year period detailing 
what impact, if any, this proposal has had on the market.

El Paso Blanco Mis-Measurement - El Paso pipeline called this week and agreed 
with TW that they had been erroneously calibrating their Blanco meter for the 
last several years and did in fact owe TW gas volume.  They would like to 
offset the balance owed TW against volume NNG owes El Paso.  Market Services 
is verifying the net volume figures.  The settlement volume proposed by El 
Paso is 91% of everything we requested.  We will attempt to take the 
approximately 651,000 MMBtu back at Window Rock over a 30 day period 
beginning in October.

Arizona Public Service - We have re-negotiated their FT agreement prior to 
the ROFR being triggered at the end of September.  APS will renew its 8,000 
MMBtu/d Permian to Needles agreement at the max rate for one year as well as 
the provision if they release the capacity at greater than max rate, TW and 
APS will share the upside 50/50.

Red Cedar Gathering - We received the signed letter agreement from Red Cedar 
which commits them to full reimbursement of the capital expense necessary to 
increase the Arkansas Loop meter from 200,000 MMBtu to 300,000 MMBtu/d.  We 
expect this meter increase to be completed and flowing in excess of the 
current 200,000 MMBtu/d by January 1, 2001.

System Expansions - We have updated our cost estimates and RAROC for 
expansions of the I-B Link, Blanco to Thoreau and mainline segments of the 
pipe.  We will follow up with PNM today on cost comparisons.  The TW 
expansion appears to be more cost effective than PNM's. 

The BP Amoco/Vastar merger is set for completion today.  Amoco will begin 
marketing Vastar's equity gas beginning 11/1/00.  Amoco has expressed a high 
level of interest on the remaining capacity from Ignacio to Blanco and from 
Red Cedar to Blanco for 2001.  They will provide a firm offer to TW next week.

Line Outages:
The September 13th allocation due to compressor failure in TW's West of 
Thoreau Area allowed for 42,0000 MMBtu of IT volumes to flow from PG&E Topock 
to Socal Needles.  Revenue generated at max rate equaled $10,500 to partially 
offset the commodity and fuel loss.

EOG Resources - EOG executed the Interconnect and Operating agreement for the 
15,000 MMBtu/d we expect from their new well.  Transwestern has initiated 
landowner notifications which  takes at least 30 days.  We continue to 
negotiate with EOG on becoming a new shipper and taking firm transport on TW. 

Burlington Resources Val Verde Plant - TW's ability to accept the contracted 
volume from the plant on a consistent basis continues to be an issue.  High 
temperatures and volume flow in the San Juan region have reduced our 
capacity.  BR is requesting relief to offset the monetary impact of gas that 
was shut in or sold at lesser margins in other locations.  We are working 
with Facility Planning to determine what capital / equipment may be necessary 
to meet our contractual demand.