Message-ID: <8900900.1075855025832.JavaMail.evans@thyme> Date: Wed, 17 Oct 2001 13:19:55 -0700 (PDT) From: l..mims@enron.com To: pmonaghan@csnllc.com Subject: RE: Heartland Steel/CSN Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Mims, Patrice L. X-To: 'pmonaghan@csnllc.com' X-cc: X-bcc: X-Folder: \PMIMS (Non-Privileged)\Sent Items X-Origin: Mims-Thurston-P X-FileName: PMIMS (Non-Privileged).pst Hey Pat, I've done some research on the actuals that you make reference to (Vectren). Enron's sale with Heartland Steel is at the interconnect between Midwestern Gas Transmission and Vectren (formerly know as Indiana Gas). The actual volumes that you are reporting and consider to be your monthly actuals are volumes that I believe are behind Vectren's city gate (which means that you more than likely have an imbalance on Vectren's system). This bears checking with Vectren, regarding an imbalance behind their gate. You should be receiving some type of statement or invoice from Vectren. Per the contract, Enron uses the Midwestern Gas Transmission (pipeline statement) to actualize our monthly invoices to you. I've attempted to draw a diagram for you to make it as clear as I can. Let's talk! _________________________________________XXXX_______________________________________________________________________________XXX Midwestern Gas Pipeline Interconnect b/t Vectren (this pipe owned by Vectren) Heartland Steel Facility & Midwestern Gas Pipeline (Burner Tip) -----Original Message----- From: Mims, Patrice L. Sent: Monday, October 15, 2001 3:31 PM To: 'pmonaghan@csnllc.com' Subject: FW: Heartland Steel/CSN Hi Pat, I spoke with our attorney this afternoon, and he is in the process of contacting your attorney. It appears that the bill of sale that your attorney had sent to Enron, did not specifically address the agreement that Enron and Heartland Steel entered into. Long story, short, our attorney is following up with to obtain documents that contain this provision. Thanks -----Original Message----- From: Mims, Patrice L. Sent: Friday, October 12, 2001 1:03 PM To: 'pmonaghan@csnllc.com' Subject: Heartland Steel/CSN Hi Pat, Just a note to recap our recent and ongoing discussions regarding the disposition of the Heartland Steel and CSN agreements: At this point, Enron's Legal Department has requested documentation from CSN that substantiates the fact that CSN did purchase Heartland Steel. I have contacted your legal counsel, Mr. Tarter, and obtained information that will hopefully satisfy Enron's request. The next step for me is to meet with my legal staff on Monday, October 15, 2001 to determine the following: 1) Is the relationship between Heartland Steel and Enron completely severed? 2) Do we come up with a brand new pricing and deal structure with CSN, or does the existing structure with Heartland Steel remain in place? Once, these determinations have been made, we'll follow up with the necessary legal documents. I'm hoping to have resolution to these entire process by early next week. Talk to you then. P.S. As a notional indicator, November, 2001 pricing for Chicago city gate delivered volume (which is comparable to your location) would be estimated at NYMEX (currently $2.41) plus approximately $0.10. Please keep in mind that the NYMEX price changes on a second-by-second basis, and this will impact your price.