Re: Missing Tariff Numbers on HPL Annual Report

FYI
----- Forwarded by Dan J Hyvl/HOU/ECT on 11/03/2000 10:59 AM -----

Tom Shelton
11/03/2000 09:58 AM

To: Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: Re: Missing Tariff Numbers on HPL Annual Report

FYI.
---------------------- Forwarded by Tom Shelton/HOU/ECT on 11/03/2000 09:56
AM ---------------------------

From: Jim Pond @ ENRON 11/02/2000 04:36 PM

To: Tom Shelton/HOU/ECT@ECT
cc: Rita Wynne/HOU/ECT@ECT, Kristen J Hanson/HOU/ECT@ECT, Irene
Flynn/HOU/ECT@ECT
Subject: Re: Missing Tariff Numbers on HPL Annual Report

It is my understanding that cashouts coming from Unify look like regular
sales and purchases. The accounts used are as follows:

TYPE ACCOUNT

Cashout Sale - Third Party 483
Cashout Sale - Intercompany 484
Cashout Purchase - Third Party 803
Cashout Purchase - Intercompany 803?

This is how the FERC module in SAP is mapping them.

Rita/Kris - let me know if my understanding of Unify is correct.

Irene Flynn@ECT
11/02/2000 03:35 PM
To: Jim Pond/Corp/Enron@Enron, Rita Wynne/HOU/ECT@ECT, Kristen J
Hanson/HOU/ECT@ECT
cc:

Subject: Re: Missing Tariff Numbers on HPL Annual Report

See Tom's message regarding cashouts. Please reply directly to him and copy
me so I will know how to list these transactions on the tariffs and whether
the revenue is applicable for TRRC Gross Receipts Tax. Thanks!
---------------------- Forwarded by Irene Flynn/HOU/ECT on 11/02/2000 03:11
PM ---------------------------

Enron North America Corp.

From: Tom Shelton 11/02/2000 02:39 PM

To: Dan J Hyvl/HOU/ECT@ECT
cc: Irene Flynn/HOU/ECT@ECT, Steve Van Hooser/HOU/ECT@ECT, Barbara N
Gray/HOU/ECT@ECT, Carla Nguyen/HOU/ECT@ECT, Chris Price/NA/Enron@Enron, Chris
Riegler/Corp/Enron@Enron, Jim Pond/Corp/Enron@Enron, Kristen J
Hanson/HOU/ECT@ECT, Michael Eiben/HOU/ECT@ECT
Subject: Re: Missing Tariff Numbers on HPL Annual Report

I guess the transport tariff is as good a place to refer to cashouts as
anywhere. How should they be listed on the tariffs? And what (NARUC)
account are cashouts booked under?

Dan J Hyvl
11/02/2000 10:00 AM
To: Irene Flynn/HOU/ECT@ECT, Steve Van Hooser/HOU/ECT@ECT, Barbara N
Gray/HOU/ECT@ECT
cc: Carla Nguyen/HOU/ECT@ECT, Chris Price/NA/Enron@Enron, Chris
Riegler/Corp/Enron@Enron, Jim Pond/Corp/Enron@Enron, Kristen J
Hanson/HOU/ECT@ECT, Michael Eiben/HOU/ECT@ECT, Tom Shelton/HOU/ECT@ECT
Subject: Re: Missing Tariff Numbers on HPL Annual Report

All of the assignment documents are supposed to be filed in the contract
file. Please review the contract file for these assignment effective dates.
The date something is invoiced has nothing to do with the tariff filings,
what is important is the delivery period and terms. imbalance cashouts
should be reported as such under the transport tariff, not a sales tariff,
unless the transport does not provide for cash-out in which case a separate
sales tariff needs to be set up to go with the Sales Contract which should be
in the contract file. Do you agree?

Irene Flynn
10/27/2000 02:49 PM

To: Dan J Hyvl/HOU/ECT@ECT, Tom Shelton/HOU/ECT@ECT, Kristen J
Hanson/HOU/ECT@ECT
cc: Michael Eiben/HOU/ECT@ECT, Chris Riegler/Corp/Enron@Enron, Carla
Nguyen/HOU/ECT@ECT, Jim Pond/Corp/Enron@Enron, Chris Price/NA/Enron@Enron
Subject: Missing Tariff Numbers on HPL Annual Report

Dan: The following sales contracts were listed on the HPL Annual Report
without a tariff number.

Would you review the following information and advise as to whether a sales
tariff filing is required. It appears that the transactions related to these
sales contracts took place prior to the time the contracts were assigned to
Houston Pipe Line Company. Let me know if the tariffs we prepared to respond
to the Auditors query, should truly be included with our November 10th TRRC
Tariff Filing Report..

Contract #96022611: H&D Operating Company - Gas Lift Sales: Delivery period
01/99 Invoiced 9/10/99; Delivery period 02/99 Invoiced 10/12/99. HPL needs
sales tariff for period after assignment. (When did this get assigned to
HPL?)

Contract #96019866: OXY USA. Inc. - Imbalance Cashout Contract: Delivery
period 03/99; Demand Charge Invoiced 3/26/99. Why shouldn't this be under
the transport tariff for this transport imbalance. DAN

Contract #96022610: Preferred Pipeline Company - GTC Sale Spot: Delivery
period 01/99 and 02/99; Invoiced 08/27/99. Who issued the GTC, if HPL, then
HPL needs to file a sales tariff. DAN

Contract #96019865: Texcol Gas Services Inc. - Imbalance Cashout Contract
(Contract was set up per Tommy Yanowski relating to the imbalance on
Terminated Transport Agreement 12-88974-204 (311a2(284C)Offshore Tx);
Delivery period 02/99; Invoiced 03/25/99. Cashout under 311transport should
not require a tariff filing, however, it may require a FERC filing. DAN

Contract #9600821: HPL Resources Company - Master Purchase Sale Firm.
Delivery period 01/99, Invoiced 02/12/99
Delivery period 02/99, Invoiced 03/24/99
Delivery period 04/99, Invoiced 06/10/99; 09/10/99
Accounting Summary Report of Manual Invoices recorded in the G/L for 01/99,
03/99, 04/99, 05/99, 06/99, 07/99, 09/99, 10/99, 11/99 and 12/99.
Do you know when this contract came back to HPL and should the tariff reflect
activity that took place prior to when it was assigned to HPL? This
information should be in the contract file. The tariff should not reflect
activity prior to the time the contract was assigned to HPL. DAN

I will need to get final information to Carla Nguyen AS SOON AS POSSIBLE so
she can make the appropriate notations to the annual report pages 31a2, 31a3
and 31a4.

Thanks for all your help!