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Enron Mail |
Richard Sanders and I talked with Elizabeth (an attorney with AEP). She was
not sure that their was a question that needed to be answered. Richard opined that the question may have related to the effect on HPL if it lost the Taub lawsuit. This suit relates to an alleged violation of the surface rights agreement (Collateral Agreement) which was entered into with certain surface owners after the Unit Agreement was signed. Richard explained that if HPL lost the suit, it would lose its rights to maintain a pipeline and well facilities on the property subject to the lawsuit. In that event HPL would have to either locate its pipeline around the property or use its condemnation rights to acquire an easement across the property. Because the Collateral Agreement relates to surface rights, losing those rights would not affect HPL's rights under the Unit Agreement and thus the Taubs would not have the right to drill a well to produce the gas that HPL has in storage.
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