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FYI
----- Forwarded by Mark Whitt/NA/Enron on 02/16/2001 10:03 AM ----- Mark Whitt Sent by: Mark Whitt 02/16/2001 09:18 AM To: "Day, Brian (Denver)" <BrianDay@aec.ca< cc: Subject: RE: Opal Transaction Agreements In regards to your Email, 1. You are right on Questar, I will fix that. 2. You are also correct on the "average". The deal would be the last day settlement. I fixed that also and I have attached the corrected Transaction Agreement. 3. The deal is a firm deal with Force Majeure provisions. It would be subject to the terms of our Master Firm Agreement. We both need to review that and make sure both sides are comfortable with what it says. If we have concerns let's address that ASAP! If you need a copy let me know. 4. Holding this deal open until you receive Board Approval is difficult. Obvously because of the size and nature of this transaction even the slightest move in the basis markets has a huge dollar impact. I understand that you need to get the approval, but it is very difficult, if not impossible for us to hold a Nymex related deal, of this size and term, open for that long of a time. I think the best way to handle this is for you to get board approval for a target range for size and price and then we transact. Look this and the attached transaction agreement over and let's discuss. Thanks Mark "Day, Brian (Denver)" <BrianDay@aec.ca< 02/16/2001 08:29 AM To: "'Mark.Whitt@enron.com'" <Mark.Whitt@enron.com< cc: Subject: RE: Opal Transaction Agreements A few things: 1. Questar Pipeline is not at the tailgate of Opal. 2. With respect to the price, do you mean the price will be set based on the last day settlement of each individual month on the contract, or the average of all the settlements. We would prefer to price it monthly based on the last day settlement, I think that's what you mean, I just wanted to verify. If that's not what you meant, let me know. 3. I just want to make sure that this is a firm purchase that could be curtailed only due to force majeure. I will hopefully be able to get back to you today on the deal, we are checking credit to make sure we don't have a problem doing this much gas with you guys, I don't think we'll have a problem but I'll let you know. Because of the size and term of this deal, we have to get board approval, and that is happening next Wednesday. Would you be able to do the deal today subject to board approval? I don't foresee any problems with the board, but we do need them to sign off on it. Let me know what you think! Brian -----Original Message----- From: Mark.Whitt@enron.com [mailto:Mark.Whitt@enron.com] Sent: Thursday, February 15, 2001 4:18 PM To: Day, Brian (Denver) Subject: Opal Transaction Agreements Brian this is a draft version of what the Transaction Agreements would like. Let me know if the form looks right to you. Obviously we will adjust to what the actual deal is. Thanks Mark (See attached file: AEC opal index1TA.doc)(See attached file: AEC opal Nymex1TA.doc)
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