Enron Mail

From:gerald.nemec@enron.com
To:anthony.austin@enron.com
Subject:Compression Services Agreement Calculation
Cc:mark.courtney@enron.com
Bcc:mark.courtney@enron.com
Date:Tue, 17 Aug 1999 10:05:00 -0700 (PDT)

Tony, The following steps follow the contract amendment (assumes Bloomfield
contract):

1. Calculate the number of hours that the driver was down for force majeure.
2. Subtract the hours in #1 from the total hours in the month.
3. Calculate the Monthly Contract Quantity as defined in the amendment
(Bloomfield -- 7000 times # of hours developed in #2 above)
4. Calculate the Load Factor as defined in the agreement.

Since we don't have a load factor during those hours of the Force Majeure
Event, we assume that the unit would have run at the load factor in #4 above
if not for the Force Majeure event.

Thus,

5. Multiply the Load Factor times 7000 (max HP-hrs) times # of hours of
force majeure event. This gives you the equivalent HP-hours that would have
been used during the Force Majeure event or Supply Interruption.
6. In accordance with the amended Section 3.2(a), to calculate HP-hour
charge do the following:

Multiply Conversion Factor (taken from Exhibit based on load factor) times
(Shaft Energy delivered + Equivalent HP-hours during Force Majeure [this is
the number calculated in #5 above]) times 1.031.

Let me know if you have any questions. We can work through an example if we
need to. Thanks.