Enron Mail |
i am ignoring this one right and you are sending me new one???
Lisa J. Mellencamp Enron North America Corp. - Legal 1400 Smith St. Houston, TX 77002 Tel: (713) 853-7986 Fax: (713) 646-3393 E-mail: Lisa.Mellencamp@enron.com "Meier, Peter" <peter.meier@neg.pge.com< 04/19/2001 11:25 AM To: "'lisa.mellencamp@enron.com'" <lisa.mellencamp@enron.com<, "'gerald.nemec@enron.com'" <gerald.nemec@enron.com<, "'steve.van.hooser@enron.com'" <steve.van.hooser@enron.com< cc: Subject: AGREEMENT WITH RESPECT TO GAS TRANSPORTATION <<Gas Transaction Collateral Agreement(4-18-01)ENA_.doc<< I made two changes to your version. Because of cumulative blacklining, they are not separately identified, but they were to add "or the Designee" in the parenthetical at the end of Section 4. More significantly, I reinserted our cure rights if you are in default of this Agreement. You had changed it to arise only in the event of a "Default under the Master Netting Agreement." We need it in either case. Regarding UCCs. We are giving you a clean release under El Paso's release procedures. Hence I do not see the need to do a UCC search. If you would like, we will give you a representation that we hold the Pipeline Capacity free and clear of any liens or encumbrances, but then we would expect you to give us a covenant not to create or permit to create any lien or encumbrance on the Pipeline Capacity, all of which is implicit in any event. Also, since you possess the Pipelien Capacity outright, there is no need for a security interest grant to you. To give you a security interest under the El Paso tariff, we need to use the whole Trust and Assignment Agreement that we drafted originally. Moreover, if we must do that to give you a security interest in something you already possess, then it becomes patently unfair to deny us a reciprocal security interest in the Pipeline Capacity, which, after all, we do not hold in our possession. One of the points of giving you the present release without the recall right was that you were not satisfied with the security interest route. In short, we think it adds no protection for you and creates significant additional burden for us (and for you in documentation). Please call me on my cell phone at 301-502-1715 as you as you are available. Thanks, Peter PG&E National Energy Group and any other company referenced herein that uses the PG&E name or logo are not the same company as Pacific Gas and Electric Company, the regulated California utility. Neither PG&E National Energy Group nor these other referenced companies are regulated by the California Public Utilities Commission. Customers of Pacific Gas and Electric Company do not have to buy products from these companies in order to continue to receive quality regulated services from the utility. - Gas Transaction Collateral Agreement(4-18-01)ENA_.doc
|