Message-ID: <17056831.1075859166434.JavaMail.evans@thyme> Date: Thu, 27 Dec 2001 09:44:15 -0800 (PST) From: gerald.nemec@enron.com To: credit <.williams@enron.com> Subject: ECS Sale of Gas Cc: mark.knippa@enron.com, stephanie.miller@enron.com, stuart.zisman@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable Bcc: mark.knippa@enron.com, stephanie.miller@enron.com, stuart.zisman@enron.com X-From: Nemec, Gerald X-To: Williams, Jason R (Credit) X-cc: Knippa, Mark , Miller, Stephanie , Zisman, Stuart X-bcc: X-Folder: \Gerald_Nemec_Jan2002\Nemec, Gerald\Sent Items X-Origin: Nemec-G X-FileName: gnemec (Non-Privileged).pst Jason, To follow up on our discussion last week, Enron Compression Service= s Company (not a debtor, and owned 100% by ENA) is receiving physical gas u= nder its Compression Services Agreements with Transwestern Pipeline Company= . The gas is delivered to ECS on TW's system as consideration for ECS deli= very of electric compression services. This gas was sold by ECS to ENA und= er a long term Master Firm, but obviously that has blown up. TW has been d= esperate to get this gas off of their system since it is packing their pipe= line worse every day. We put into place a GISB with Richardson Energy Mark= eting, Ltd. I made sure there was not cross affiliate netting language in = the GISB. Some of the gas was sold over the Christmas weekend (about 20,00= 0 per day) and more is being sold this week. We need to put into place a l= ong term sale for the remainder of the term of the compression deals (appro= ximately 7 years) to protect the compression services deals. Sid may be a = potential counterparty, but it may be sold to someone else. Please provide= any input you may have on how we need to structure this sale given the cur= rent situation.