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Enron Mail |
My only suggestion are as follows:
(1) We need to be more explicit about the de-coupling of the assets from the gas that is delivered to CES by ENA. As such, I would recommend that we expand Sections 4.1 and 4.2 to include a CES paper pool storage or bank which gets credits (theoretical injections) and debits (theoretical withdrawals). The credits to the bank would be made in accordance with the "Theoretical Storage Injection Schedule (TSIS)" as per 4.2 and Exhibit 2. The debits to the bank would be made per the daily CES nominations on days when the retail demand is greater than the daily purchase quantity defined on Exhibit 1. The one exception to this de-coupling is that all of the debits/credits would be subject to operational constraints imposed by the Gas Storage Contracts and the Gas Transportation Contracts. The constraints should only come into play with the debits, as the TSIS (which by definition will be less than the daily MDIQ) would rarely be impacted by constraints. At the end of the term, the bank balance and the physical storage balance will need to be equal. If not, provision needs to be made for a post term true-up. (2) In the last sentence of Section 4.1, should the remedy for CES's failure to notify in a timely manner be "penalties" or "ENA damages," which would include both penalties and trading losses &/or opportunity costs? I am not certain, but I understood it to be the latter. Jenny Helton 01/24/2000 04:12 PM To: Robin Barbe/HOU/ECT@ECT, Stacy E Dickson/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT, Billy Lemmons/Corp/Enron@ENRON, Ed McMichael/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT, Colleen Sullivan/HOU/ECT@ECT cc: Subject: Columbia Energy Services Corporation ("CES") Per Jeff Hodge. Here is an initial draft of an Agreement to finalize the retail issues. Please note that I have not included anything on gas buy back yet. I would like to get some confirmation on that issue before drafting. Otherwise, your thoughts and comments will be appreciated. I look forward to hearing from you.
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