Message-ID: <29708616.1075844103479.JavaMail.evans@thyme>
Date: Thu, 26 Oct 2000 08:40:00 -0700 (PDT)
From: kevin.hyatt@enron.com
To: bullets@enron.com
Subject: Bullets 10/27
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El Paso Blanco Mis-Measurement - The 518,000 MMBtu of gas agreed upon in our 
settlement letter with El Paso has been paid back to TW as of October 25.  

Southwest Gas - SWG agreed to amend the start date of their transport 
contract to November 15.  TW resold the space along with an additional 1000 
MMBtu/d for a total of 15,000 MMBtu/d to Sempra Energy at $0.15 (slightly 
above market but equal to the rate SWG was originally paying).  Morgan 
Gottsponer sold Sempra the gas for this transport deal.

Burlington Resources' Val Verde Plant - We held another conference call with 
BR this week to finally resolve the outstanding issue of TW's obligation to 
take 250,000 MMBtu/d from Burlington's Val Verde plant.  Operational 
restrictions and San Juan temperatures seasonally affect the amount of volume 
TW is capable of receiving from Val Verde.  BR had claimed damages of nearly 
$3,000,000 from having to sell San Juan gas into less attractive markets 
because TW could not take all their volume.  

Upon investigation, there were actually very few days in which TW hampered 
Burlington's deliveries; but TW does have an exposure here for a contractual 
commitment that operationally we cannot meet on a year-round basis without 
spending several million dollars for additional compression.   In exchange 
for Burlington signing an amended operating agreement that meets both parties 
needs, TW has agreed to refund $100,000 of transport charges to BR for gas 
they moved this summer down the San Juan lateral.

Transport Options Program - Comments and interventions on this filing are due 
from interested parties by the close of business Monday October 30th.  

Duke Energy - We are working on a 100,000 MMBtu/d east-to-east transport deal 
with Duke beginning in January 2001 for one to two years at a rate of $.02 
-.03.  This deal would justify the capital expenditure to replace the coolers 
at WT-2 and give TW another 50,000 MMBtu/d flow capacity on the west Texas 
lateral.  However, Duke wants alternative flow capability west to the border 
at an incremental $.06.  As an alternative, we are proposing an index-based 
sharing mechanism for the west flow but Duke is balking (current market for 
calendar 2001 net of fuel is $.205).