Enron Mail

From:dan.hyvl@enron.com
To:caszasz@aep.com
Subject:Gas Transportation Agreements
Cc:skneuweiler@aep.com
Bcc:skneuweiler@aep.com
Date:Thu, 31 May 2001 03:38:00 -0700 (PDT)

Cathy,
At the request of Mitch Dutton, I have reviewed the form of 311 and
intrastate gas transportation agreements provided to AEP by Duke Energy
Guadalupe Pipeline, Inc. and by EPGT Texas Pipeline, L.P. As we discussed
this morning, these agreements appear to be the standard form of agreement
utilized by these counterparties. Although I have no authority to approve
them for execution by AEP, had they been provided to me for execution by HPL,
I would approve them for execution.
Please note the Balancing and Penalties provision of the agreements for the
charges which these parties could impose should receipts and deliveries get
out of balance. If time permitted I would suggest that these charges be
negotiated to something closer to the actual costs incurred by the
transporter. However, it has been my experience that these parties are
reluctant to change the standard form for standard transportation services.
No contract documents have been provided concerning the TXU Lone Star
Pipeline. The only documents faxed were two transportation services request
forms.