Message-ID: <10119982.1075842581179.JavaMail.evans@thyme>
Date: Tue, 17 Aug 1999 10:05:00 -0700 (PDT)
From: gerald.nemec@enron.com
To: anthony.austin@enron.com
Subject: Compression Services Agreement Calculation
Cc: mark.courtney@enron.com
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Tony,  The following steps follow the contract amendment (assumes Bloomfield 
contract):

1.  Calculate the number of hours that the driver was down for force majeure.
2.  Subtract the hours in #1 from the total hours in the month.
3.  Calculate the Monthly Contract Quantity as defined in the amendment 
(Bloomfield -- 7000 times # of hours developed in #2 above)
4.  Calculate the Load Factor as defined in the agreement.

Since we don't have a load factor during those hours of the Force Majeure 
Event, we assume that the unit would have run at the load factor in #4 above 
if not for the Force Majeure event.

Thus, 

5.  Multiply the Load Factor times 7000 (max HP-hrs) times # of hours of 
force majeure event.  This gives you the equivalent HP-hours that would have 
been used during the Force Majeure event or Supply Interruption.
6.  In accordance with the amended Section 3.2(a), to calculate HP-hour 
charge do the following:

 Multiply Conversion Factor (taken from Exhibit based on load factor) times 
(Shaft Energy delivered + Equivalent   HP-hours during Force Majeure [this is 
the number calculated in #5 above]) times 1.031.

Let me know if you have any questions.  We can work through an example if we 
need to.  Thanks.