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Enron Mail |
Michael,
Gary asked me to review your requested changes and provide revised documents for your review and, if acceptable, execution. Attached please find 2001-012bcrfm which is the extension document, 2001-012abbcrfm which is the clean copy of the long term document modified as discussed in 1,2 and 3 below, and 2001-012abbrcrfm with is the red-line of the changes which have been incorporated in the clean version of the long term document. 1. I have left the reference in 3) to MinDQ, because the DCQ should always be less than the MinDQ and as such, any short fall in required purchases less than the MinDQ (which includes the DCQ) will be bought back by the Company. I have added a sentence at the end to provide that Customer will be credited for the Buyback Volume which Company purchases from Customer. By way of examples, (A) assume that the DCQ for a day was set at 15,000; that Customer's total natural gas requirements for such day was 20,000; and Customer's actual purchases from Company for such day was 12,000. In that event the MinDQ would be 20,000 and Customer would purchase 15,000 from Company at the price in 1); Customer would purchase 5,000 from Company at the price in 2); and Company would purchase 8,000 from Customer at the price in 3). (B) assume that the DCQ for a day was set at 15,000; that Customer's total natural gas requirements for such day was 12,000; and Customer's actual purchases from the Company for such day was 12,000. In that event the MinDQ would be 15,000 and Customer would purchase 15,000 from Company at the price in 1) and Company would purchase 3,000 from Customer at the price in 3). 2. I have added your requested paragraph 4) to provide that should Customer's total natural gas requirements be below the DCQ and the parties are able to agree on a reduced DCQ below Customer's total natural gas requirements, then no buyback would be applicable. 3. I have revised the last sentence of the Fixed Price Strategies as you requested.
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