RE: New Gas Deal

an indications is $4.53 for physical. Let me know if you need anything else. Basis is up today due to heat and the stage emergencies yesterday. Still waiting on Patti - she is busy because people are out. Will keep you posted.

-----Original Message-----
From: Foster, Chris H.
Sent: Tuesday, July 03, 2001 9:09 AM
To: Ward, Kim S (Houston)
Cc: Fuller, Dave; Tycholiz, Barry
Subject: FW: New Gas Deal

Kim:

Here is a summary of the structure we are using to buy gas from the gas desk for Harbor. This is basically what I plan on using for any future tolling deals that come up. We can always enhance the structure by replacing the Gas Daily with a fixed price or NGI border price.

Also, can you get me an indicative 5 year offer for PG&E Citygate out of August for 10,000 MMBtu/d?

Thanks!

C

-----Original Message-----
From: Foster, Chris H.
Sent: Monday, July 02, 2001 3:27 PM
To: Scott Hawley (E-mail)
Cc: Brian Ferguson (E-mail)
Subject: New Gas Deal

Attached is a summary of the new gas deal. Essentially, we will sell selling Gas Daily mid plus $.10 on a variable basis will a cash out on imbalances each month. This will become effective on June 1 and on a month to month thereafter. I have added a clause that indicates that EPMI will be assured we will collect our gas costs each month. Please let me know if these terms do not represent your understanding.

C

<< File: new gas deal.doc <<