Subject: Re: Citizens request for proposal
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 1 Dec 2000 05:46:00 -0800 (PST)

Jeff,
Thank you for the referral of the Citizens Kingman, Arizona project to Enron 
Asset Management Resources (EAMR), the new ETS service company, for further 
development.  We appreciate your willingness to "stay in the loop" with the 
project since you have the relationship with the customer.  

It is not often that we have the opportunity to take over the operation of a 
facility before in-service.  This is a great opportunity to operate assets 
that do not have a long and potentially risky environmental history, so we 
are excited about this opportunity.

This bid proposal is envisioned to be a joint effort between Operations and 
Market Services to:
Identify the functions required to perform the requested services
Price the delivered services
Identify the risks associated with performing the services 
Mitigate and/or price in adequate compensation for the risks

As the project is kicked off, we enter the information gathering stage to 
determine the configuration of the facility and the service requirements.
I have placed a call to Citizens to initiate this effort and will keep you 
informed of developments.

Julia, 
I am assuming that Donna Scott will be the primary contact for this joint 
development and that she will coordinate Market Service's efforts, therefore, 
she is copied on this e-mail.  Let me know if you have any changes to this 
approach.

Sarabeth
X55023

---------------------- Forwarded by Sarabeth Smith/OTS/Enron on 12/01/2000 
01:14 PM ---------------------------

Don Hawkins
11/30/2000 05:19 AM
To: Randy Rice/OTS/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON
cc: Sarabeth Smith/OTS/Enron@ENRON, David Marye/OTS/Enron@Enron 

Subject: Re: Citizens request for proposal  

Jeff, Enron Asset Management Resources, the ETS entity used for providing 
these type services would be interested in further discussion concerning this 
opportunity including seeing the operating request made by Citizens.  I would 
like for Sarabeth Smith to follow up with you as soon as possible on this 
opportunity so you should be expecting a call within the next few days

Thanks,

Don

From: Randy Rice on 11/28/2000 09:03 PM
Sent by: Randy Rice
To: Jeffery Fawcett/ET&S/Enron
cc: Drew Fossum/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Kevin 
Hyatt/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Rich 
Jolly/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Susan 
Scott/ET&S/Enron@ENRON, Don Hawkins, Phil Lowry 

Subject: Re: Citizens request for proposal  

Thanks Jeff, ETS Operations would be glad to look at these and any other 
"potential" opportunity to operate 3rd party facilities. Don Hawkins is 
heading up the "endless possibilities" for us. I did copy him on this reply, 
Don is based in Houston. 

I 'am currently in Amarillo Texas with the SW Operation Directors and I will 
discuss this with Rich.

THANKS for the partnership.
R2

	Jeffery Fawcett
	11/27/2000 04:00 PM
		 
		 To: Randy Rice/OTS/Enron@ENRON, Rich Jolly/ET&S/Enron@ENRON
		 cc: Susan Scott/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Kevin 
Hyatt/ET&S/Enron@Enron, Mary Kay Miller/ET&S/Enron@ENRON, Drew 
Fossum/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON
		 Subject: Citizens request for proposal

Citizens Utilities is in the process of selling off all of its 
non-telecommunications businesses throughout North America.  One of their 
principal assets, Louisiana Gas Service (LGS) is one of those companies 
recently sold by Citizens.  LGS provided gas control and operations services 
to other non-LGS companies, including the Citizens Utilities LDC assets in 
Arizona.  With the consummation of the sale of LGS, Citizens has told me 
confidentially that they have no reasonable way of operating the 
interconnect, metering and 1.5 mile lateral pipeline facilities that 
interconnects TW and EPNG to the recently constructed Griffith Energy Power 
Plant.   Therefore, Citizens is looking to possibly have a 3rd party provide 
contract operations services under an operating agreement.  TW has been asked 
in writing by Citizens to consider making a proposal to operate these 
facilities. 

Does TW have an interest in providing contract operations services for 
Citizens?  In a related legal/regulatory question, does TW have the authority 
to conduct contract services on behalf of others, or would we have to perform 
these services as a separate legal entity?  If we do, does this present an 
affiliate problem for us if we "share" operating employees?  If these 
threshold questions can be accommodated, and TW is not only able to provide 
contract operations services for Citizens, but has a commercial desire to do 
so, what would we charge Citizens for this service?  Although it would appear 
at first blush to be a relatively simple matter to operate these facilities, 
remember that Citizens will be receiving gas (potentially) from both TW and 
EPNG simultaneously, presenting not only a challenge to balance pressure 
between the pipes, but to account for and reconcile deliveries and receipts 
from both pipes as well as the plant site. 

Although I'm the principal commercial representative for Citizens as regards 
transportation matters, I'm certainly willing to step out of the middle of 
this negotiation if Operations desires to handle it themselves.  I will be 
happy to provide you a copy of the brief 1/2 page letter Citizens sent to me 
on the 17th soliciting TW's interest.   Given the relatively short lead time 
until LGS operations is sold, Citizens has requested expedited 
consideration.  Please let me know how you want to proceed.  Call if you have 
any questions.