Message-ID: <17685317.1075851744044.JavaMail.evans@thyme>
Date: Sun, 25 Mar 2001 04:35:00 -0800 (PST)
From: chris.foster@enron.com
To: kim.ward@enron.com
Subject: Citizens Deal
Cc: jane.tholt@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: jane.tholt@enron.com
X-From: Chris H Foster
X-To: Kim Ward
X-cc: Jane M Tholt
X-bcc: 
X-Folder: \Jane_Tholt_Nov2001\Notes Folders\Discussion threads
X-Origin: THOLT-J
X-FileName: jtholt.nsf

Kim:

Following our discussion of last Thur., we need to prepare the term sheet for 
Citizens. I want to focus on the TW deal first.  There are a number of things 
that I hope you can get from the desk by early afternoon my time, so we have 
time to do the term sheet.

I want to show them a structure that would give them right to call on gas 
each day.  What there be a demand charge?  What would be the Gas Daily 
adder?  High end of the range?  Mid point?  What would the demand charge be 
for mid-point of the range?  We would also compensate the desk to receive a 
demand charge equal to the full monthly cost of the lateral.  The desk should 
love that much of the structure.  Try to get some numbers from Janie.

 I have had numerous conversations with Citizens and TW.  TW will do the deal 
but want their liability limited to $140,000 year.  Citizens wants this 
liability increased to $1,000,000.  We could do this by buying insurance.  We 
might subcontract with TW to do this so the services deals is between ENA and 
Citizens. We would need to increase the demand charge to pay for this 
increase in laibility.

Once we know all our costs, we would bundle this together and then increase 
the demand charge for orig. 

Call me first thing on Monday

C