|
|
Enron Mail |
Rick,
Beautiful. =20 I would like to add that we got the benefit of this method of calculating p= rejudgment interest because the arbitrators specifically adopted Northern's= prejudgment interest methodology, which was based on the fine work Harry, = Tangi and you did on our post-hearing briefs. =20 Of even more significance, the panel specifically noted KN's course of per= formance of using our meter numbers for its monthly plant settlements when = the panel rejected ONEOK's argument that ONEOK had never "accepted" the met= ers. Harry and Tangi brought this evidence to our attention at the outset = of this litigation, and it became a centerpiece argument for us. With their= and your fine work (and the unbelievable hours all of you put in, late at = night, early in the morning, on the weekends, and frequently on an emergenc= y basis, with little or no notice), you made ONEOK's attorneys very unhappy= with your testimony at the hearing. I loved it. This was a team effort, and congratulations are due all the way around. It= was my great pleasure to have partnered with you on this. Britt=20 -----Original Message----- From: =09Dietz, Rick =20 Sent:=09Wednesday, July 11, 2001 4:04 PM To:=09Davis, Britt Cc:=09Dykes, Tangie; Fossum, Drew; Ringblom, Kathy; Porter, Gregory J.; Zik= es, Becky; Carrier, Lee; Woodson, Harry; Corman, Shelley; Lowry, Phil; Mill= er, Mary Kay Subject:=09RE: Northern v. ONEOK Britt, We have done a thorough analysis of ONEOK's calculation of pre-judgment int= erest and are in agreement with their amount due Northern of ($56,097.69). = =20 The reason why the interest is due Northern (in apparent contradiction to N= orthern being instructed to pay ONEOK approximately $1.2 million dollars fo= r the retroactive correction of the meter factor error) is tied to the calc= ulation of the accumulated interest. Since this is a dollar-valued OBA, ea= ch month's imbalance was valued at the appropriate monthly index price and = a 6% simple interest calculation was applied from that month until the curr= ent period. We had a significant amount of monthly imbalances due Northern= early in the review period that carried forward very large credit interest= balances due us. For example, July 1998 had a credit imbalance due NNG va= lued at ($753,541.27). This amount calculated at a 6% interest rate for 99= 7 days (September 1998 through June 2001) resulted in a credit interest amo= unt due NNG of ($123,498.19). For comparison purposes, contrasting with th= is month is a large debit imbalance due ONEOK of $769,407.44 for the month = of December 2000. This amount calculated at a 6% interest rate for only 11= 3 days (February 2001 through June 2001) resulted in a debit interest amoun= t due ONEOK of $14,292.01. By summarizing these two months, we have an imb= alance value that is due ONEOK of $15,866.17 with a corresponding net inter= est valuation due Northern of ($109,206.18). This scenario plays out for t= he entire review period netting to a cumulative credit amount due Northern = of ($56,097.69). If you would like to review the calculations in detail, please let me know = and I will forward the spreadsheet to you. Rick, Harry & Tangie -----Original Message----- From: =09Davis, Britt =20 Sent:=09Monday, July 09, 2001 4:51 PM To:=09Woodson, Harry Cc:=09Dykes, Tangie; Dietz, Rick; Fossum, Drew; Ringblom, Kathy; Porter, Gr= egory J.; Zikes, Becky; Carrier, Lee Subject:=09Northern v. ONEOK Importance:=09High =09Harry, =09We need your help yet one more time. Tomorrow morning I will have hand-= delivered to you a letter from Ben Singletary, ONEOK's attorney, stating th= at they calculate pre-judgment interest (using Northern's methodology, whic= h the arbitrators specifically approved--thanks again to you, Tangi and Ric= k!) such that ONEOK actually owes Northern about $50,000. We certainly don= 't mind them owing us $50,000; however, we want to see if ONEOK owes us eve= n more than that. =20 =09If you need additional information (such as the actual panel award), ple= ase call Becky Zikes and she will make sure a copy gets to you. I will be = out from about 9:30 to 3:00 tomorrow, but will be in later in the day. =09Many thanks. =09Britt
|