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Enron Mail |
Drew -- here is Lorraine's update on the Val Verde situation that I mentioned
in my previous e-mail. Recall that we've been unable to accept quantities of gas from Burlington because of the high temperatures at the interconnect in recent years. I've recommended that we seek amendment of the contract as soon as possible to reflect what we CAN do. The proposed amendment Lorraine is referring to, which Burlington rejected, modified our obligation to provide firm compression sufficient to accept 250,000 MMBtu. // Burlington Resources - Val Verde Plant - Michelle and I had a follow-up conversation with BR Thursday. I faxed the proposed amendment to BR Monday and we hadn't heard from them yet. They claim approximately $135,000/month in lost revenues because we are holding their production down. Michele and Darrell will work to pull together the data on exactly which days we have not been able to take BR's gas. I mentioned to BR that we were putting this info together, but they claim since they were told to back off to 180,000 - 190,000 MMBtu from about mid-June through July, our data would not accurately reflect BR's inability to schedule in excess of 180/190. They will not accept our wording in the interconnect amendment, specifically "best efforts" and "subject to operating conditions on TW", so we will need to revise this further. We offered alternate receipt point flexibility at Ignacio and alternate delivery point flexibility at El Paso Blanco on their Jackrabbit contract but they do not think this is sufficient to agree to amend the interconnect agreement. They have suggested we consider giving them a deeper discount on their San Juan - Waha contract (80,000/d, $0.14, term 11/30/06). The ball is in our court.
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