Re: Weekly Report for Feb 20

Thanks for the vote! DF

Lee Huber
02/23/2001 05:18 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: Weekly Report for Feb 20

1. MOPS. Suggested that the MOPS rehearing be brought to Madden's
attention. As a result we are looking at filing a motion to expedite. Spent
much of the week reviewing the MOPS proceeding up to date, reading pleadings
and cases. Drafted a motion to expedite which has been circulated for
comment. While it is not very compelling for expedition, it is a way to get
the proceeding brought to FERC's attention. Apparently, there is a push to
clean up old dockets. Also it brought to my attention that Northern, in this
proceeding, proposed to sell to Enron Gulf Coast Gathering, which I had
forgotten. so that if we find another purchaser, the filing will have to be
amended. Also the Enron affiliate made the filing for the declaratory order.
Kim Wilkie and were talking about MOPS and what needs to be done while she
is out on maternity leave. We were talking about the waiver and ROFR
agreements which John Goodpasture is getting executed. We need to review
whatever was done, if anything, at the time of the original filing to sell to
the affiliate. Also take a look at the current ones to see if they would be
broad enough to cover not only Northern but a subsequent sale by Northern
afilliate, if we should want to handle the sale of MOPS in that manner.
2. Attended the South End Task Force Meeting Tuesday morning. It was a
long meeting and quite productive. It was a brain dump by the south end
commercial guys for Shelley and Mike and a man named Mike Gadd who called in
from London who will work with Danny McCarty on asset deals. It was decided
to go ahead and start presenting potential deals to various Companies who we
think would be interested in the various south end assets. For exampleBob
burleson is going to present a deal for some Permian assets to SPS. SPS will
have to divest certain power plants but still would like to maintain some
control. SPS may be interested in purchasing the pipelines form Northern
and TW that currently serve the plants. SPS would operate the line as an
intrastate Hinshaw. We think these asets are a good candidate to get Stans
approval since they are not useful to get gas to California and the COS is
$18 and incremental revenue is $2-3. I will be involved in putting the
proposal together starting with confidentiality agreements.
Shelley believes that we should actively package and seek out potential
interested buyers. For example, approach Duke about the Hugoton area because
Duke has a huge helium plant there. Also talk to El Paso because of its
recent acqusition of CIG and ANR and interest in getting Rocky Moutain gas
to Cailf. Also seek out those interested in the Beaver assets and go make a
pitch.
I am reading the existing contracts we have with Oneok as well as GPM/Duke to
determine any adverse terms and conditions which could hinder a sale.
Another meeting is scheduled for the week of March 4 to go over the SPS deal
with Stan.
3 FERC Audit CWIP. Continue working with Gary Zahn and Michelle Winckowski
on a futher FERC inquiry on the Sublette work order. Will prepare a response
next week.

Next week continue work on the above items.
By the way good luck with getting Mike's job if you want it. We would be
happy to have you here!!