Re: Exxon Company, USA Global # 96035668/Sitara # 212225

In response to Cheryl's note, in looking at a copy of a Confirmation Letter confirming the proposed agreement reached on March 1, 2000 to be effective April 1, 2000 through March 31, 2001, there is evergreen language.
A termination letter is being prepared to be faxed to Exxon with an original to follow for their records.

Cheryl, this GTC is different from the ones we usually see in that HPL required signatures from both parties executed by Exxon on 3/30/00 and HPL on 8/21/00.

If you have any questions, please call me at x35231.

Thanks, Kim

Cheryl Dudley

03/16/2001 08:58 AM
To: Elsa Villarreal/HOU/ECT@ECT
cc: Amelia Alland/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Kimberlee A Bennick/HOU/ECT@ECT
Subject: Re: Exxon Company, USA Global # 96035668/Sitara # 212225

I have re-checked Sitara & verified that the above deal was a Term, Firm deal. This resulted in a GTC Purchase Firm contract being set-up in the Global Contracts System. The term of the GTC was set as the term of the deal (4/1/00 thru 3/31/01) with no evergreen, meaning that the contract will expire at the end of this month.

To the best of my knowledge, all GTC Purchase Firms have the same language & they do not have evergreen. They expire at the end of the primary term.

So, unless Exxon negotiated a deal with different, special language to allow for evergreen & included something about a "10 day notification" to terminate, there isn't any reason to "terminate" this contract.

If this is the case, please advise. Otherwise, I don't think we need to do anything. The contract will expire at the end of this month on its own.

Elsa Villarreal
03/15/2001 02:42 PM
To: Amelia Alland/HOU/ECT@ECT, Cheryl Dudley/HOU/ECT@ECT
cc: Daren J Farmer/HOU/ECT@ECT
Subject: Exxon Company, USA Global # 96035668/Sitara # 212225

Please prepare and send a termination letter by tomorrow March 16, 2001 on the above referenced deal. Houston Pipe Line Company has not renegotiated a price and have no interest in buying the gas on an evergreen basis. It is my understanding that we need to notify them within 10 days of the end of the delivery period

. If you need any additional information or have any questions, please contact me at 35656. Thanks. EMV

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