RE: Kern River Transportation Management

Steve,

Are we all set for August? Do our schedulers know how this will work? Let's talk with Patti about this transport.

Thanks,
Mike

-----Original Message-----
From: Tycholiz, Barry
Sent: Thursday, July 26, 2001 8:39 PM
To: Grigsby, Mike
Cc: South, Steven P.; Miller, Stephanie; Lucci, Paul
Subject: Kern River Transportation Management - Aug 1

As a reminder...EFFECTIVE AUG 1. ENA has appointed Nevada Power / Sierra Pacific as our agent for the term of the transportation agreement. What this means is that NP will nominate the supply gas into the pipeline and deliver to themselves as they are the market for the whole volume and term. ENA will have to instruct NP what our supply looks like ( on a daily basis)

We have sold all the Kern gas to SPPC for the entire period.... at a Socal Monthly Index minus $.42/$.95 related price and our obligation is 100% takes.

I know some supply has been purchased for the term but some gas will be procured in the spot market. I expect that Steve South and Paul Lucci will coordinate those efforts as required but we need this gas to show up every day.

Let me know if there are any questions regarding this note... but primary supply and market obligations are in the hands of the trading group.

Thanks, BT