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Enron Mail |
Jason:
As we talked last week Cannon Interest Houston has called and indicated that they would like to extend the current Base Load Buy / Sell Contract and also their Bammel Storage Contract. I will be faxing to you this afternoon the existing Contract's that I have marked through with the changes. A brief summary is as follows: The Buy / Sell Contract is where Cannon Interest Houston delivers gas to HPL June - October and receives gas from HPL November - February. The purchase price June - October is Houston Ship Channel Index. The sales price November - February is the June - October Houston Ship Channel WACOG plus $.21. The Term currently goes through February, 2005. Cannon Interest Houston has proposed that the term be extended through February, 2011 and that the sales price November - February of each year be the June - October Houston Ship Channel Index plus $.17. The Bammel Storage Contract currently has a term through February 28, 2005. Cannon Interest Houston would like to extend the term through February 28, 2011 at a Storage fee of $400,000 per year. The individual at Cannon Interest Houston that you need to call if you have any questions is Patrick Locke. His telephone number is 713-706-4318. If you have trouble reaching him it may be easier to call his cell phone which is 713-817-5388. I would appreciate it if you would call so we can discuss once you have had time to review. 713-853-7705 Jim Schwieger
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