Subject: RE: W&T Offshore and Spinnaker
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Tue, 4 Sep 2001 07:32:33 -0700 (PDT)

Nelson can we look at a Master with this customer?  Please let me know your thoughts on this issue for W&T and other producers we buy from every month?
 -----Original Message-----
From: 	Wallumrod, Ellen  
Sent:	Friday, August 31, 2001 1:57 PM
To:	Thorne, Judy; Nemec, Gerald
Cc:	Ferries, Nelson; Grass, John
Subject:	RE: W&T Offshore and Spinnaker

How about doing a Master of some sort with them ?

 -----Original Message-----
From: 	Thorne, Judy  
Sent:	Friday, August 31, 2001 1:13 PM
To:	Nemec, Gerald; Wallumrod, Ellen
Cc:	Ferries, Nelson; Grass, John
Subject:	W&T Offshore and Spinnaker

Gerald,

After talking with Nelson Ferries about two of his counterparties, I have found that the standard Tolerance/Keep Whole language that is now in our ENA Upstream confimation will not cover the negotiated Keep Whole for these counterparties. Nelson has negotiated a Keep Whole arrangement that takes effect whether the counterparty notifies us or not. The tolerance for their swing is 10% and the pricing is based on Gas Daily Mid. 

He has worded the Keep Whole on his deal tickets as follows:

"Volumes deliverd in excess of 10% of the FOM nom shall be prived at the applicable Gas Daily Report, Midpoint price. Volumes delivered below 10% of the FOM nom shall be kept whole at the applicable Gas Daily Mid-point up to the agreed tolerance level of 10%."

These deals are monthly deals that are done every month and will need this language in them every month.  Please let me know how you would like to handle including of this special language in the confirmations. 

Thanks,
Judy