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Enron Mail |
Jeff -- I spoke with Lisa Bills -- she said you were going to help us on the conversion of the Chase prepay from financial to physical. Included is a note from gas structuring regarding the contractual issues that were discussed with the physical traders. Let me know when you have some time to discuss. Thanks for your help and take care. Michael Garberding Enron Americas Global Finance Work: (713) 853-1864 Fax: (713) 646-3602 E-mail: michael.garberding@enron.com -----Original Message----- From: Little, Kelli Sent: Tuesday, October 09, 2001 6:24 PM To: Garberding, Michael Cc: Moon, Eric; Boyt, Eric; Horne, Jonathan; Edmonds, Marcus; Kolle, Brian Subject: Chase Prepay I spoke with the physical traders regarding the four locations for physical delivery on the Chase swaps and they expressed a few concerns that I think we should address as soon as possible. While it is not a problem to spread the total volume ratably across the four locations, the Force Majeure language in past contracts has put the desk at risk during certain events which would allow the Counterparty to cut supply. For example, in August when the hurricane presented a Force Majeure event, Chase cut gas supply to ENA, but ENA was unable to cut an equivalent amount of supply to Chase due to language in the contract. As a result, the physical desk was forced to bear the cost of delivering more supply than it received. Sandra Brawner is one of the traders with whom I spoke - she said that in the past this issue has been raised but never properly addressed. I realize there are some cross-default issues in linking the trades - maybe we can sit down and talk about some different options to remedy the problem (or to at least make the traders feel more comfortable with the contract language). Thanks, Kelli x5-3419
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