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Enron Mail |
Stacey -
Below are two e-mails sent to you on their respective dates. I think we are ready to push on with the ANR ML7 Delivery Location and have suggested some language based on comments from Kevin (e-mail dated 5-12). Kevin has called and asked for this product. Please offer comments/approval. 5/31/00 I spoke with Mark Schrab in Logistics about the ANR ML7 Product that Kevin Ruscettit would like to start trading and he wasn't able to dispell any beliefs that this is a product that should not be traded, OTC or otherwise. Mark explained that often times on this pipe there were cuts due to operational constraints. I explained that we had drafted language to contemplate these occurances. I then asked Mark what would happen if there was a cut due to op constraints, and Mark explained that he would try to find another Buyer along the pipe. I probed further, and found that there would be no revision of the contract, nor a re-pricing of the transaction due to the re-scheduling. I then read Mark the language under consideration (making sure he understood that this was conceptual) and he agreed that the language provided for something that we are already doing operationally. Mark had never seen the language we propse for use for this Product. I think Logistics may have been issuing an opinion on their point without being fully aware of what we were attempting to offer, and I certainly don't blame them for doing so - as we all make decisions based on the information at hand. I would like to proceed with this Product. Dale 5/12/00 I spoke with Kevin Ruscetti, the trader, and Kevin has clarified for me that the product he intends to trade on ANR ML7 is NOT Interruptable gas, but rather subject to operational constraints like Socal Topock. He did request, however, that we make reference to secondary firm delivery. Below please find the op constraints language that we use. I also added a secondary delivery blurb; please feel free to edit - and then I'll get this in front of Kevin for his review. The transaction is for delivery at the ANR Pipeline Company ML7 interconnect. The volumes scheduled to be delivered are subject to reductions due to normal operational constraints on the ANR Pipeline Company pipelines based upon historical operating conditions. The reductions caused by these constraints are excused nonperformance and are not considered a failure to receive or deliver firm gas. In the event that the volumes scheduled are reduced due to such normal operational constraints occur, Buyer may designate a secondary firm delivery location.
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