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Enron Mail |
Attached are the details of the proposed sale of the Northfield and Faribault
branch lines. The associated contracts are also attached for your review. File 00-310E.doc is the actual purchase & sale agreement and file 00-310D.doc identifies the assets to be sold. Please review and let me know if you have any concerns or questions. If you would like I can set up a meeting with Bob Stevens who is the marketer for this deal to discuss further. ---------------------- Forwarded by Dave Waymire/ET&S/Enron on 12/01/2000 11:30 AM --------------------------- Dave Waymire 11/20/2000 12:35 PM To: Danny McCarty/ET&S/Enron@Enron, Dave Neubauer/ET&S/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Michel Nelson/ET&S/Enron@ENRON, Mike McGowan/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON cc: James Centilli/ET&S/Enron@ENRON, Bob Stevens/ET&S/Enron@Enron Subject: Asset Divestiture Approval Attached is a "Asset Divestiture Approval Form" for the sale of the Faribault Minnesota branchline location # 83801 consisting of 1.091 miles of 6" pipe and the Faribault TBS#1 and the Northfield branchlines location No.'s 85001 and 85002 consisting of approximately 4.9 miles of 4" pipe, and the Northfield TBS#1. Please indicate your approval or rejection of this proposal on the approval form and return to either James Centilli (EB4250) or David Waymire (OMA0755) by 5PM Monday, November 27th. If you have questions or concerns, please contact James Centilli (853-5028) or myself (398-7062). These branchlines are experiencing heavy encroachment. The Faribault branchline is currently being odorized by NSP per a previous arrangement in order to comply with a commitment NNG made to the DOT to transport odorized gas because of the population density along the pipeline. There is no threat of a by pass by selling these branchlines. There is an estimated annual O&M savings of $10k to $20k plus the avoided expense, exposure and operational headaches of not having to monitor high pressure branchline odorization. The net book value of these facilities is $57,712. The facilities will be sold for $1. In addition, NSP has agreed to enter into a 1 year transportation agreement guaranteeing incremental revenues of $350,000. The net book value of the facilities, is assumed to be of such small value as to be de minimus as allowed by previous rulings of the Commission and will be treated as a non-operating unit. This will allow the undepreciated balance to be cleared to depreciation reserves. The sale will require that the Northfield TBS be relocated upstream of the main line take off at an estimated cost of $225,000. David
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