FW: APEA Gas Prepay Transaction

Patti Sullivan and Suzanne Christiansen informed me that all west deliveries have been kept whole. Please contact them directly if you require detail on a daily basis. They will be happy to assist you. If you have any problems, please do not hesitate to call me at 713-853-7031.

Sincerely,
Mike Grigsby

-----Original Message-----
From: Sullivan, Patti
Sent: Friday, December 07, 2001 9:06 AM
To: Grigsby, Mike
Subject: RE: APEA Gas Prepay Transaction

Mike,

We have a deal for the City of Pasadena at Socal for a volume of 3000 a day and to SMUD at Malin for a volume of 15,000 a day. At Socal, they sold gas back to us and we are netting it against that deal. At Malin, through the 6th, the gas has been flowing 100%, but today there is a small cut and Suzanne is checking into it. Those are the only 2 west desk deals.

Thanks,
Patti

-----Original Message-----
From: Grigsby, Mike
Sent: Friday, December 07, 2001 8:29 AM
To: Sullivan, Patti; Christiansen, Suzanne
Subject: FW: APEA Gas Prepay Transaction

Are we making deliveries to this contract? Please put together a cuts sheet for this deal.

Thanks,
Mike
-----Original Message-----
From: Rasmussen, Dale
Sent: Thursday, December 06, 2001 5:40 PM
To: Grigsby, Mike; Sullivan, Patti
Cc: Hodge, Jeffrey T.; Mcdonald, Michael; Tweed, Sheila; Shackleton, Sara; Bushman, Teresa G.; Calger, Christopher F.
Subject: APEA Gas Prepay Transaction

I have gotten a call from Roger Mock, CEO of American Public Energy Agency, regarding a series of transactions.

In 1999 we (ENA through Enron Natural Gas Marketing Corp.) entered into a 12-year prepay. We got approximately $297MM in cash up front, with delivery obligations at various delivery points, including NNG-Demarc, Rockies, TW-SJ, NIT, Topock and Sumas over the life of the deal.

Currently the end users are Clark Public Utility District (Washington State), City of Glendale (California), City of Pasadena Water and Power Department (California), and Sacramento Municipal Utility District (California).

It is my understanding that ENGMC is not currently in bankruptcy.

I am sending down to Mike's attention a CD with the project documents on it. I apologize in advance for the absence of a table of contents, but I felt lucky just to get the information. Teresa Bushman may have a hard copy of the documents.

Roger Mock said that on Saturday he received a call from Kevin Brady notifying APEA that deliveries on Northern were being cut. The documentation allows for some delivery point flexibility, should alternative delivery points be better for us at this time. The other parties to the APEA deal are anxious to work out alternatives, if possible.

Roger can be reached at (800) 476-3749.

Please let me know if I can be of help.

Thanks.

Dale Rasmussen
Tel: (503) 464-8863
Fax: (503) 464-8058