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Enron Mail |
DAN - I've made a few modifications to the above referenced agreement to
reflect volume changes and pricing changes associated with the GRE deal. The deal structure has been modified to reflect an increase in the DCQ, a $0.05 demand charge per DCQ and the ability for GRE to decrease its DCQ monthly. Could you please review the changes I made, as well as clarify that the respective pricing reflects gas purchased "day-ahead", not intraday. Intraday gas sells will be negotiated/ quoted on an "as needed" basis. What does not appear to be addressed in any of the contracts to be executed by ENA and GRE is the agency relationship that will exist whereby ENA will handle nominations, scheduling, invoicing , etc... The intent of our overall arrangement with GRE is to provide an agency relationship pursuant to the June 1, 2000 TRANSACTION TERM SHEET. Is this agency arrangement going to be documented separately? If so, please prepare a draft. Otherwise, please incorporate into the below agreement language consistent with the June 1st Transaction Term Sheet under the section entitled "OPERATIONS". OSCAR - I've modified the agreement to reflect IF-FOM at Ventura for the DCQ and GDA-Common High for all volumes in excess of the DCQ. Also, as you note above, I'm instructing Dan to clarify that this is day ahead gas. Carl, in his June 23rd term sheet broke out the pricing mechanism to include a "day of" price. I don't think we should show a price for intraday gas in the Winter. It will be overly expensive and probably will never be utilized. Also, Carl raises the issue of utilizing third parties when ENA cannot service their account (blancing services, etc...) Conceptually, I am indifferent, but if they don't use us than we don't nominate or schedule. chris x31666 Oscar Dalton 06/30/2000 02:45 PM To: Dan Hyvl cc: Chris Meyer/HOU/ECT@ECT, Jason R Wiesepape/HOU/ECT@ECT Subject: Dan, Great River Energy signed the reimbursement agreement and the transport agreements. We are trying to finalize the gas deal and I wanted to let you know that Chris Meyer will be getting with you next week to review the transport arrangemet so we can incorporate into the transaction agreement that is part of the master. by copy of this e-mail, I am also requesting Jason to send a copy of a master agreement to Carl Sulzer for his review. thanks Oscar
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