Transport p&l

---------------------- Forwarded by Phillip K Allen/HOU/ECT on 05/30/2000
01:32 PM ---------------------------

From: Colleen Sullivan 05/30/2000 09:18 AM

To: Phillip K Allen/HOU/ECT@ECT
cc:
Subject: Transport p&l

Phillip--
I've noticed one thing on your intra-month transport p&l that looks strange
to me. Remember that I do not know the Northwest at all, so this may not be
an issue, but I'll point it out and let you decide. Let me know if this is
O.K. as is, so I'll know to ignore it in the future. Also, if you want me to
get with Kim and the Sitara people to change the mapping, let me know and
I'll take care of it..

On PG&E NW, it appears that PGEN Kingsgate is mapped to a Malin Citygate
curve instead of a Kingsgate curve, resulting in a total transport loss of
$235,019.
(If the mapping were changed, it should just reallocate p&l--not change your
overall p&l.) Maybe there is a reason for this mapping or maybe it affects
something else somewhere that I am not seeing, but anyway, here are the Deal
#'s, paths and p&l impacts of each.
139195 From Kingsgate to Malin ($182,030)
139196 From Kingsgate to PGEN/Tuscarora ($ 4,024)
139197 From Kingsgate to PGEN Malin ($ 8,271)
231321 From Kingsgate to Malin ($ 38,705)
153771 From Kingsgate to Stanfield ($ 1,988)
Suggested fix: Change PGEN Kingsgate mapping from GDP-Malin Citygate to
GDP-Kingsgate.

Clay Basin storage--this is really a FYI more than anything else--I see five
different tickets in Sitara for Clay Basin activity--one appears to be for
withdrawals and the other four are injections. Clay Basin is valued as a
Questar curve, which is substantially below NWPL points. What this means is
that any time you are injecting gas, these tickets will show transport
losses; each time you are withdrawing, you will show big gains on transport.
I'm not sure of the best way to handle this since we don't really have a
systematic Sitara way of handling storage deals. In an ideal world, it seems
that you would map it the way you have it today, but during injection times,
the transport cost would pass through as storage costs. Anyway, here's the
detail on the tickets just for your info, plus I noticed three days where it
appears we were both withdrawing and injecting from Clay Basin. There may be
an operational reason why this occurred that I'm not aware of, and the dollar
impact is very small, but I thought I'd bring it to your attention just in
case there's something you want to do about it. The columns below show the
volumes under each ticket and the p&L associated with each.

Deal # 251327 159540 265229
106300 201756
P&L $29,503 ($15,960) ($3,199)
($2,769) ($273)
Rec: Ques/Clay Basin/0184 NWPL/Opal 543 NWPL/Opal Sumas NWPL/S of
Gr Rvr
Del: NWPL/S of Green River/Clay Ques/Clay Basin/0852 Ques/Clay
Basin/0852 Ques/Clay Basin Ques/Clay Basin
1 329 8,738
2 1,500
3 2,974 11,362
4 6,741 12,349 1,439
5 19,052 3,183
9 333
13 30,863 2,680
14 30,451
15 35,226
16 6,979 235
17 17,464
18 9,294
20 10,796 771
21 17,930
22 10,667
23 14,415 9,076
25 23,934 8,695
26 3,284
27 1,976
28 1,751
29 1,591
30 20,242