Subject: Re: Kern River Bid Letter
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Wed, 14 Mar 2001 06:04:00 -0800 (PST)

Tyrell,  I have made some revisions to the latest drafts of  the letter 
agreement and your cover letter.  Please review.  As I noted earlier, Barry 
indicated he had some language that he wanted to revise concerning the mark 
to market.  I have not been able to contact him yet.  So unless Mark and 
Barry have talked, probably need to hold these until you or I hear from Barry.

Also, if we are going to do any of these transaction with a Canadian party, 
Peter Keohane and Eric Ledain need to comment on this form.  I have sent them 
an earlier version and I am copying them here.  

I will be in a meeting until about 3:30 pm central and will be available 
after that.  

I again want to reiterate, that if the assignment takes place after the firm 
transport agreements are signed, Kern could require the assignment to be done 
via the capacity release bidding procedures of their tariff.  I noticed that 
one of the packages is less than 1 year in term.  This means it could also be 
bid up in excess of max rate.  Anything over 1 year could only be bid to max 
rate.    We may want to add a provision that to the extent the capacity is 
assigned via capacity release and it is bid up beyond max rate, ENA will have 
no obilgation to take the capacity and make the mark to market payment.   
Probably need to discuss this with Mark.