FW: Market Area Allocations

FYI. Is this the same on NNG and TW? Thanks. Lynn

-----Original Message-----
From: Laferla, Lynda
Sent: Wednesday, August 22, 2001 10:30 AM
To: Aldinger, William; Collins, Marion; Conklin, Jacob; Coon, Galen; Cooper, Tim; Howard, Jack; Laferla, Lynda ; Phillips, Mary; Rivers, Cynthia
Cc: Nacey, Sheila; Blair, Lynn; Studebaker, James ; Bryant, Mike
Subject: Market Area Allocations

I received a question this morning from FGU regarding a cut they got on contract 5141 for ID-2. The total volume nominated on the

contract did not change from ID-1 to ID-2, however, they did move around some volumes on their delivery points - (decreased some

primary delivery points and increased alternate-firm delv. points). When we did the Market Area allocation for ID-2, it looked at

the "alternate point" increase as "incremental" - even though total contract volume remained the same. I was somewhat confused by

this cut and talked with Joe Hoang.

According to Joe: PLEASE NOTE that the Market Area Flowing rights for a contract are retained by:

1) Contract
2) Gas Type
3) Nominator - Duns

Therefore, if a shipper has a total of 30,000 mmbtu's of flowing gas rights on a contract: 10,000 Alternate firm and 20,000
of Primary firm and they change their nom - reducing the Primary firm volume to 15,000 and increase the Alternate firm
volume to 15,000 - the additional 5,000 of Alternate firm would be considered "incremental".

FYI

Lynda