Subject: Harper curve
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 16 Apr 2001 19:41:00 -0700 (PDT)

PGL is considering sending out RFPs to producers as part of their proposed fix-price lock-in. Specifically, what they are looking at is Nov-Mar fix price Harper purchases that they would then flip to ENA as part of the supply deal.  We should discuss a couple of things before PGL starts this process:

1. How much Harper gas can PGL purchase for Nov-Mar?  I assume that all of the May-Oct '01 has already been purchased by ENA.

2.  What is the basis conversion amount to take fix price Harper and turn it into fix price Chicago?  

3. Should we encourage or discourage these producer lock-ins?  (i.e. do these deals remove a short Harper basis position that ENA doesn't want?)

I'm not sure if PGL is really going to do this, but Raulie would love to get back in the gas buying business.  Let me know when we can get together to discuss.

Richard