Re: Transwestern CAF Request

I agree with Susan. df

From: Susan Scott 05/31/2000 09:24 AM

To: Christine Stokes/ET&S/Enron@ENRON
cc: Drew Fossum@ENRON

Subject: Re: Transwestern CAF Request

Approved.

Christine Stokes
05/31/2000 08:35 AM
To: Lorraine Lindberg, Steven Harris/ET&S/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Bill
Cordes/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON
cc: Kevin Hyatt/ET&S/Enron@Enron

Subject: Transwestern CAF Request

TRANSWESTERN PIPELINE CONTRACT APPROVAL REQUEST

Please review the attached non-standard discount letter to Southwest Gas
Corporation (SWG). SWG shall enter into a 10 year agreement for 14,000
Dth/d of seasonal (November through March) capacity effective November 1,
2000. The transport rate of $.15/Dth/d shall increase annually by
$.005/Dth/d. The primary path shall be from Tranwestern's East of Thoreau
(EOT) Area to the SWG Interconnect located in the East of California Area.
Alternate receipt point rights shall be from Tranwestern's EOT Area and from
the Bloomfield Compressor. SWG ROFR rights shall be wiaved. In
additionTranswestern shall propose to retain revenues generated by capacity
release at rates higher than the effective contract's discount rate.

(Please note that the FTS-1 Appendix A - not shown here with the discount
letter- specifically indicates 0 MMcf/d capacity for the April through
October period. Therefore, even though the $.1500/MMBtu rate in Paragraph 3
of the discount letter does not indicate the rate is a "seasonal rate", the
effective billing to SWG shall be seasonal.)

Please indicate your approval via REPLY WITH HISTORY. All Officer approvals
shall be faxed to Bill Cordes for final Officer approval.