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Enron Mail |
Stuart, I reviewed the Bridgeline binders. I found a side letter agreement that addresses termination of the Transport and Storage Agreement. Basically the letter provides LD's payable by ENA to Bridgeline for early termination. Bridgeline get's kept whole for the intitial ten year term of the agreements. For the transport deal, they get $0.025 for 150,000 MMBtu per day for the remaining ten year period and for the storage deal they receive $0.025 for 100,000 MMBtu per day for the remaining ten year period. Both are NPV'd at a discount rate of 9%. The side letter and the transport and storage agreements have no provisions affecting the Partnership upon early termination of those agreements. I am researching the common carrier order and will get back later today.
-----Original Message----- From: Zisman, Stuart Sent: Wednesday, January 02, 2002 4:38 PM To: McMichael Jr., Ed; Nemec, Gerald Cc: Redmond, Brian Subject: Bridgeline Partnership and Storage/Transportation Deals Ed and Gerald, Brian and I spoke with Randy Curry of Bridgeline earlier today regarding a deal that we are trying to put together in order to sell the pad gas (in place) from Storage Caverns #13/#14. During that conversation, Randy indicated that: (i) ENA's default under its storage and transport agreements with Bridgeline impacts the Bridgeline partnership itself (and that there are certain side agreements that spell this out) and (ii) Bridgeline would reject any efforts by ENA to remove its gas inventories from storage facilities owned by Bridgeline. Bridgeline contends that ENA is permitted to pay all past due amounts and provide adequate assurances for future payment on its storage and transport deals as there is a bankruptcy order in place that allows the debtors to pay common carrier liens and warehouseman's liens. I asked Randy whether he had sought a lawyer's opinion regarding whether Bridgeline could be properly classified as a common carrier and/or warehouseman - he said that he had. Gerald please advise regarding Randy's assertions above. Ed, please let me know if you are already looking into either of these matters. If not, my guess is that you will be interested in hearing more. Regards Stuart
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