Subject: Weekly Bullets
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 21 Dec 2001 09:55:28 -0800 (PST)

Bullets for NNG Marketing:

Midwest
MidAmerican: Pleasant Hill - Preliminary agreements are being drafted concerning an escrow funding arrangement to address concerns of MidAmerican on Northern's credit worthiness with regard to the proposed Pleasant Hill Generation facilities.

Terra Chemicals: After multiple discussions with Terra concerning their ability to activate an offset provision with Northern and other Enron affiliates, payment was received for their November 2001 reservation invoice of $309,000.

Viking Gas Transmission:  NNG officially entered the recent VGT open season by requesting 35,000 MMBtu/day of delivery capacity at Browerville, MN ( a new TBS for VGT) and a receipt point at Chisago (the existing NNG interconnect).  This request is made in an attempt to lower ProjectMax expansion costs.  Our goal is to make this transaction work for $0.02/MMBtu/day.  This would be for the winter only, 15 years, beginning 11/1/2003.

Duluth:  Negotiations with Duluth regarding avoiding a bypass have been slowed by Bud Krause, Manager of Systems Operation.  He is indicating that he now feels that there may not be enough "value" in the deal for Duluth.  Bob Stevens is setting up a meeting with NNG management and Duluth. 

Pricing & Storage
Pipeline Capacity.  Analyzed (in conjunction with Facility Planning and Gas Control) potential model changes that provide for incremental 60 mm/d Zone EF capacity and 100 mm/d of Demarc-North capacity that will require minimal facility changes (Sean Bolks has been key in this effort).

FDD.  Review possiblities for purchasing 3rd party storage for potential backstopping of FDD requests that were received during the recent open season.  We received requests for 3-5 Bcf of FDD above our ability to provide service from our own facilities.

Transport Deal.  Finalize Jan - Mar Tenaska transport deal for Field capacity.  Total demand charges of ~$540,000.

Preparing to capitalize on incremental transport and storage deals that may arise due to colder Market Area weather that is anticipated for the next 6 - 10 days.

TI Business.  Continue Field Area TI business analysis in an effort to maximize value from TI shippers.

Project Development
Project MAX / MGO - Contacted Wayne Fransdal this Friday to review the latest information regarding options to serve requirements of the Benson branchline. Identified critical facility scope and cost issues that need to be shared with Wayne to drive the decision process and structure a deal that will be acceptable. Will be working with Facility Planning to complete the information and run through our rate model.
Project MAX / Excel - Received a late request from NSPWis requesting incremental service on the La Crosse branchline. Info forwarded to Facility Planning. Will analyze impact to other shippers that participated in the Open Season on a timely basis and decide how to handle the late request. Hopefully, will be able to accommodate NSPWis w/o any problems.
JAL - Working on a proped sale of facilities to Sid Richardson and a proposal to review w/ management. Goal is to have the package ready by the end of next week or week after. 
CO2 ISSUE - Continue to work w/ Facility Planning to develop the best alternatives utilizing the treating facilities at Lyons. Goal is to have the project fully scoped by the end of the year.