Message-ID: <26703501.1075842769296.JavaMail.evans@thyme>
Date: Wed, 7 Mar 2001 11:17:00 -0800 (PST)
From: ron.coker@enron.com
To: stephanie.miller@enron.com, barry.tycholiz@enron.com, gerald.nemec@enron.com
Subject: Pastoria PSA
Cc: karen.jones@enron.com, andrew.kelemen@enron.com
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Here's the PSA language.  Sorry.


(a)   Buyer agrees to obtain the release of Seller under Seller's guarantee, 
dated [_____], in favor of Kern River Gas Transmission Company effective as 
of the Closing, and in furtherance thereof, agrees that Buyer shall either 
provide its own guarantee in favor of Kern River Gas Transmission Company or 
such other form of security as shall be acceptable to Kern River Gas 
Transmission Company in order to obtain such release.

----- Forwarded by Ron Coker/Corp/Enron on 03/07/2001 07:16 PM -----

	Ron Coker
	03/07/2001 07:16 PM
		 
		 To: Stephanie Miller/Corp/Enron@ENRON, Barry Tycholiz/NA/Enron@ENRON, Gerald 
Nemec/HOU/ECT@ECT
		 cc: Karen E Jones/HOU/ECT@ECT, Andrew Kelemen/HOU/ECT@ECT
		 Subject: Pastoria PSA

Below is the covenant we have in the PSA regarding release of the gas credit 
support.  When will a shipper be required to put up the credit support?  
Would anticipate we would have trouble obtaining a written release from Kern 
if Calpine agreed to provide the required support?  Would we receive a 
written release if Enron puts up a guarantee (which by definition covers the 
entire 15-year term) and Calpine puts up a three year evegreen LC?  Thanks.