RE: term sheet

Hi Kim

I'm OK with the March deal. After that, it's a little iffy.

I'm still not comfortable with the April-August El Paso arrangement,
especially since we really don't know how this line will work out after the
split. My preference would be to:
1) buy 1,456/day + loss gas at San Juan Index + 0.05 and flow it to So Cal
Topock(subject to true-up for curtailments); and,
2) sell other El Paso -< PG&E capacity at a future price, tbd.

I've attached my version of the term sheet.

Have a good weekend and trip. See you soon!

-----Original Message-----
From: Kim.Ward@enron.com [mailto:Kim.Ward@enron.com]
Sent: Friday, February 23, 2001 12:51 PM
To: balladeer@att.net
Subject: term sheet

Eric,

Attached is an updated term sheet. As you know, any fixed prices are
subject to change until we reach an agreement. Also, in the Canadian
Supply section, I left that part up to further negotiations in the case
that you get rid of the engage supply. I found out after our conversation
that Enron Canada would be selling and nominating the AECO gas as well as
acting as agent for any transport down to Kingsgate. This can be done but
I will have to work such negotiations with them. Are you comfortable with
this for now?

Also, Q3 socal basis is now offered at $2.10. FYI.

Let me know if you have any questions. I will go ahead and put a deal in
the system for March since I will be gone next week. Just let me know if
you agree with El Paso capacity bid for March.

Thanks for your help!

Kim

(See attached file: Feb_08_2001_supply_proposal.doc)

- Feb_08_2001_supply_proposal.doc