Message-ID: <9594793.1075844100726.JavaMail.evans@thyme> Date: Thu, 24 Aug 2000 10:42:00 -0700 (PDT) From: kevin.hyatt@enron.com To: bullets@enron.com Subject: Revised Bullets 8/25 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\Tw-commercial group X-Origin: LOKAY-M X-FileName: mlokay.nsf 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. SoCal Windowing - a conference call was held with Mike Nelson, Rich Jolly, Steve January, Terry Galassini, Darrell Schoolcraft, Ray Smith, Gary Choquet, and David Roentsch regarding TW's pressures and delivery capability at SoCal Needles. Analysis indicates we have 35 pounds of pressure drop from our Needles measurement station to the SoCal station across the river (approximately two miles). SoCal maintains that if we can give them 830 psi at their station, they can take the full 750,000 MMBtu under the contract (this translates to 870 psi at TW's meter with our current situation). Our problem has been if we lose volume out of San Juan or a unit on the West of Thoreau leg, then we lose line pack and then pressure at the border. SoCal acknowledges they have a motor out of service at Needles but plan to have it back on line in October. But they maintain this won't help resolve the situation. Operations has agreed to look at a number of things including changing the type of meter at Needles, looking at some station valve replacement, and mechanical condition of stations 1 through 4. Marketing agreed to estimate the revenue impact of the pressure drop and lower volume delivery to help justify any capital expenditures.