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Enron Mail |
Credit assurances will need to be provided at the time the firm
transportation documents are signed. The PA states that Kern will tender the transport agreement no later than 30 days prior to the date Kern files their FERC application. Shippers will then have 15 days to sign the document . Kern will want to file this application ASAP - sometime in April. I notice that the language below does not address our need to have a call on the capacity if the sale falls through. Due to the high level of exposure surrounding this capacity, I don't think the language set forth below deals with all of the issues. I have a 9:30 meeting with Gerald to prepare the assignment documents - can we conference then? Ron Coker 03/07/2001 07:17 PM To: Stephanie Miller/Corp/Enron@ENRON, Barry Tycholiz/NA/Enron@ENRON, Gerald Nemec/HOU/ECT@ECT cc: Karen E Jones/HOU/ECT@ECT, Andrew Kelemen/HOU/ECT@ECT Subject: Pastoria PSA Here's the PSA language. Sorry. (a) Buyer agrees to obtain the release of Seller under Seller's guarantee, dated [_____], in favor of Kern River Gas Transmission Company effective as of the Closing, and in furtherance thereof, agrees that Buyer shall either provide its own guarantee in favor of Kern River Gas Transmission Company or such other form of security as shall be acceptable to Kern River Gas Transmission Company in order to obtain such release. ----- Forwarded by Ron Coker/Corp/Enron on 03/07/2001 07:16 PM ----- Ron Coker 03/07/2001 07:16 PM To: Stephanie Miller/Corp/Enron@ENRON, Barry Tycholiz/NA/Enron@ENRON, Gerald Nemec/HOU/ECT@ECT cc: Karen E Jones/HOU/ECT@ECT, Andrew Kelemen/HOU/ECT@ECT Subject: Pastoria PSA Below is the covenant we have in the PSA regarding release of the gas credit support. When will a shipper be required to put up the credit support? Would anticipate we would have trouble obtaining a written release from Kern if Calpine agreed to provide the required support? Would we receive a written release if Enron puts up a guarantee (which by definition covers the entire 15-year term) and Calpine puts up a three year evegreen LC? Thanks.
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