Subject: ECS Sale of Gas
From: [email-masked]
To: credit <[email-masked]>
Cc: [email-masked], [email-masked], [email-masked]
Date: Thu, 27 Dec 2001 09:44:15 -0800 (PST)

Jason,  To follow up on our discussion last week, Enron Compression Services Company (not a debtor, and owned 100% by ENA) is receiving physical gas under its Compression Services Agreements with Transwestern Pipeline Company.  The gas is delivered to ECS on TW's system as consideration for ECS delivery of electric compression services.  This gas was sold by ECS to ENA under a long term Master Firm, but obviously that has blown up.  TW has been desperate to get this gas off of their system since it is packing their pipeline worse every day.  We put into place a GISB with Richardson Energy Marketing, 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 20,000 per day) and more is being sold this week.  We need to put into place a long term sale for the remainder of the term of the compression deals (approximately 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 current situation.