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Enron Mail |
Dan;
Thanks for your note concerning the subject agreement. I'm wondering if it might be more straightforward if we just replace the affected sections of the form of contract Enron previously provided. ( In preparing the suggested changes I followed the structure (and headings) of that form.) With respect to "OTHER TERMS", I suggest that the first three paragraphs in the last version could be replaced. The suggested changes are reproduced below for ease of reference and use. Note that the final paragraph anticipates the insertion of a Contract Number by Enron. Regards; Michael Kleiner Law Department TIER OF GAS: As specified in OTHER TERMS, below. DCQ (IN MMBTUS): An amount between 0 MMbtu per day and 20,000 MMbtu per day, as specified in OTHER TERMS, below. DELIVERY POINT: The interconnect of ANR Pipeline Co. (Joliet) and Alliance Pipeline Limited ("Alliance") provided that Customer will use reasonable efforts to arrange deliveries to alternate downstream pipelines as Company may request in accordance with the procedures specified in OTHER TERMS, below. ......... OTHER TERMS: In this Agreement, "Customer's AOS" shall mean Customer's right to utilize Authorized Overrun Service on Alliance by virtue of that agreement between Customer and Alliance providing Customer with 51.1 MMcf per day of Alliance firm capacity, but does not include Customer's right to utilize Authorized Overrun Service that is announced as available to Customer after 9:00 am Mountain Time on the Nomination Day; and "Gas Day" has the meaning given to that term in the U.S. tariff for Alliance pipeline. "Nomination Day" means the business day immediately preceding a particular Gas Day. On each Nomination Day, by 9:00 am Mountain Time Customer will advise Company by telephone or voice mail whether Customer will deliver and sell gas hereunder on the next Gas Day and the amount to be delivered in MMBtus . That amount shall be the DCQ for the next Gas Day, in all other circumstances the DCQ will be zero. The decision to sell and deliver gas hereunder shall be within Customer's sole discretion, however, Customer agrees that it shall not utilize Customer's AOS to deliver gas to a buyer in Chicago except to Company pursuant to this Agreement, provided that Customer may utilize Customer's AOS for operational purposes such as and including balancing its Alliance account. Once DCQ for the next Gas Day has been determined as provided in the preceding paragraph such gas shall be considered to be Tier 3 Firm Gas and the Force Majeure provision of the Enfolio Spot General Terms and Conditions shall not apply to such deliveries. By 9:45 am Mountain Time on each Nomination Day that the DCQ for the next Gas Day is not zero, Company shall advise Customer in writing or via e-mail of the contract numbers, associated gas volumes, and alternate downstream pipelines, if any, where it wishes to have the DCQ allocated on the next Gas Day. If Company fails to provide such advice in respect of the entire DCQ by 9:45 am, Company will be conclusively deemed to have allocated the entire DCQ to Contract No. ______________. Promptly thereafter, Customer will place a nomination with Alliance in accordance with such allocation. -----Original Message----- From: Dan.J.Hyvl@enron.com [SMTP:Dan.J.Hyvl@enron.com] Sent: Monday, February 12, 2001 7:43 AM To: Kleiner, Michael Cc: Grant.Oh@enron.com Subject: RE:Enron/Crestar AOS purchase and sale agreement Michael, Grant Oh of the Calgary office seems to be okay with your requested modification of the interrruptible spot confirm. As such, please prepare an amendment document to add your language as an Appendix to the terms of the spot confirm, have it signed and forward to Grant Oh and myself for approval. Thereafter we will have it signed and by Enron and will return a fully executed copy to you. Grant Oh To: Dan J Hyvl/HOU/ECT@ECT 02/12/2001 cc: Barry Tycholiz/NA/Enron@ENRON 07:33 AM Subject: RE:Enron/Crestar AOS purchase and sale agreement(Document link: Dan J Hyvl) Dan, Bruce Kohrs of Keyspan left me a message this weekend with respect to the schedule 'A' that they would like attached. Assuming that the central desk has agreed to the contents of schedule 'A' - and they have been involved in drafting this document - I don't see a lot of commercial risk, especially given the lack of 'damages' in the event of any defaults to schedule 'A'. My understanding was that we would all work together on a reasonable efforts basis to allow gas to flow daily. They contents of schedule 'A' and its true enforceability does not seem to really change the spirit of the agreement. If they are really adamant about including the schedule 'A', and the central desk has reviewed and expressly agreed to its contents, then I would not object to including the schedule 'A' as part of the contract. Grant Dan J Hyvl 02/02/2001 11:56 AM To: Grant Oh/CAL/ECT@ECT cc: Subject: RE:Enron/Crestar AOS purchase and sale agreement Grant, Now they want us to consider it. ----- Forwarded by Dan J Hyvl/HOU/ECT on 02/02/2001 11:55 AM ----- "Kleiner, Michael" <Michael.Kleiner@Crestar-Energy.co To: "'Dan.J.Hyvl@enron.com'" m< <Dan.J.Hyvl@enron.com< cc: "Kohrs, Bruce" <Bruce_Kohrs@gulf.ca< 02/02/2001 11:22 AM Subject: RE:Enron/Crestar AOS purchase and sale agreement Attn: Mr. Dan J. Hvyl We are wondering if you received our fax of January 30, 2001 and if so whether you have had an opportunity to consider it. Gulf Canada Resources Limited Per: Michael Kleiner, Law Department (403) 233-3330
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