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Enron Mail |
Attached is my red-line of Chris' redline. I want to make sure we try to
define what they are going to do for $50,000 and that they let us know early if it looks like the costs are going to be higher (I think optioning premiums, survey, and landman should cost more like $100,000). Another key facet of this deal is that we need the right to force assignment of the easement options so we can either build the line to NGPL ourselves, or to Nicor only (assuming they'll go for this). If not, we may want to secure the easements to the Nicor point ourselves so we have dual-pipe flexibility. Finally, we need to make sure they talk to us before approaching any of the landowners directly adjacent to our property so we can tell our nearby neighbors that they're coming in advance, and so we can let NGPL know who to talk to - and more importantly - who not to talk to. I did not include this last point in my mark-up. The idea here is to fullfill the representations made to our potential site buyer that we would secure easements for a gas pipeline. Since the buyer has a large gas marketing affiliate, they may balk at a Nicor-only gas supply option (as did Julie Gomez). Therefore, we feel its prudent to have a dual pipe option so we can argue that this is a site value enhancment and that NGPL constitutes a highly liquid supply source with pricing that would more than amortize the incremental capital cost associated with the added 6 miles of pipeline (approximately $4 million). Scott has indicated that he wants us to secure easement options for a gas line and that the buyer is willing to pay for 50% of those costs as part of the site purchase. Prior to signing this authorization, we will have gotten Nicor's proposal for a 3 mile line so we can weigh the alternatives. Chris has already initiated contact with Nicor (their first offer over the phone was scary). Enron North America Corp. From: Chris Meyer @ ECT 10/04/2000 03:57 PM To: Kay Mann/Corp/Enron@Enron, Fred Mitro/HOU/ECT@ECT, Rusty Stevens/Corp/Enron@ENRON cc: Subject: NGPL Backstop Agreement for Titan Land Development Company, LLC Attached below is my mark-up of NGPL's draft for backstoping its expenses in perfroming preliminary work for a proposed interconnect between NGPL and the Plant. Please review and comment. chris x31666
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