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Enron Mail |
Dan
For what its worth (given that HPL is about to leave the Enron fold and I'll have to start all over with AEP's credit group!!), Roche would accept the GTC execpt the crucial part about collateral threshold and suggest the below language. Comments?? Lee ---------------------- Forwarded by Lee L Papayoti/HOU/ECT on 05/30/2001 12:27 PM --------------------------- "Radigan, William J {Purc~Parsippany}" <WILLIAM_J.RADIGAN@ROCHE.COM< on 05/29/2001 04:41:05 PM To: "'Lee.L.Papayoti@enron.com'" <Lee.L.Papayoti@enron.com< cc: "Griffith, Bob {PROC~Freeport}" <BOB.GRIFFITH@ROCHE.COM< Subject: RE: Proposed contract language Lee, We presently have approved the following paragraph in regards to hedging responsibility with another one of our natural gas suppliers with whom we lock in prices through Futures buying.? Would this paragraph be acceptable in lieu of your article 12 in HPL's Terms and Conditions?? Bill Financial Responsibility: In the event that in HPL's sole, but good faith, business judgment, exercised in a manner consistent with general commercial standards, HPL has reasonable grounds for insecurity of RVI's ability to perform its obligations under this Agreement, HPL may demand adequate assurance of performance from RVI.? Adequate assurance shall mean, but not be limited to, sufficient security in a form, for a term, and in an amount reasonably acceptable to HPL, including, but not limited to, a standby irrevocable letter of credit.? If RVI fails to deliver such adequate assurance within ten (10) business days following receipt of a written request by HPL, then RVI shall be considered to be in default of this Agreement. Similarly, in the event that in RVI's sole, but good faith, business judgment, exercised in a manner consistent with general commercial standards, RVI has reasonable grounds for insecurity of HPL's ability to perform its obligations under this Agreement, RVI may demand adequate assurance of performance from HPL.? Adequate assurance shall mean, but not be limited to, sufficient security in a form, for a term, and in an amount reasonably acceptable to RVI, including, but not limited to, a standby irrevocable letter of credit.? If HPL fails to deliver such adequate assurance within ten (10) business days following receipt of a written request by RVI, then HPL shall be considered to be in default of this Agreement. -----Original Message----- From: Lee.L.Papayoti@enron.com [mailto:Lee.L.Papayoti@enron.com] Sent: Friday, May 25, 2001 1:34 PM To: Wiilliam Radigan Cc: Bob Griffith Subject: Proposed contract language Mr. Radigan We have developed the language that is required to be able to enter into a fixed price transaction for the Freeport Plant. Because our existing physical contract is an older format, it proved to be cumbersome to modify it.? Therefore, we would enter into a new agreement for the fixed price volume as follows: (See attached file: roche-gtc-2001-049crfm.doc) Any volumes over the fixed price volumes would continue to flow under the existing agreement.? The new contract would be the first volumes through the meter. Please call to dicsuss after you have had a chance to review. Lee Papayoti
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