Enron Mail

From:lynn.blair@enron.com
To:shelley.corman@enron.com, steven.january@enron.com,darrell.schoolcraft@enron.com, kay.miller@enron.com, maria.pavlou@enron.com, tk.lohman@enron.com, steven.harris@enron.com
Subject:RE: sid letter
Cc:lynn.blair@enron.com, drew.fossum@enron.com, joe.hartsoe@enron.com,j..porter@enron.com
Bcc:lynn.blair@enron.com, drew.fossum@enron.com, joe.hartsoe@enron.com,j..porter@enron.com
Date:Thu, 2 Aug 2001 14:54:41 -0700 (PDT)

Maria, I wanted to follow up after discussions with you and Shelley, th=
e SoCal window is based on what SoCal=20
is willing to confirm into their system for the day. It does not neces=
sarily have anything to do with physical capacity at Needles.
If you have any questions, please let us know. Thanks. Lynn
=20

-----Original Message-----
From: Corman, Shelley=20
Sent: Thursday, August 02, 2001 3:09 PM
To: Blair, Lynn; January, Steven; Schoolcraft, Darrell
Subject: FW: sid letter


Please look at the insert below and let me know if you believe it to be a r=
easonable description of the Socal windowing process from the customers' pe=
rspective

-----Original Message-----=20
From: Miller, Mary Kay=20
Sent: Thu 8/2/2001 2:11 PM=20
To: Fossum, Drew; Pavlou, Maria; Hartsoe, Joe; Harris, Steven; Porter, Greg=
ory J.; 'stojic@gbmdc.com'; 'rnuschler@akingump.com'=20
Cc: Corman, Shelley; Hass, Glen=20
Subject: RE: sid letter



Looks ok to me, but make sure that Shelley also reviews as her group deals =
with the windowing issue. =20

-----Original Message-----=20
From: Fossum, Drew =20
Sent: Thursday, August 02, 2001 1:59 PM=20
To: Pavlou, Maria; Hartsoe, Joe; Harris, Steven; Porter, Gregory J.; 's=
tojic@gbmdc.com'; 'rnuschler@akingump.com'; Miller, Mary Kay

Subject: RE: sid letter=20

I'll defer to you guys on getting the specific words right, but it would be=
great if we can get something like this. Steve Harris needs to take a clo=
se look to make sure we are describing the windowing impacts correctly. La=
wyers: will a letter from Sid be admissable evidence under FERC evidence r=
ules? We may need to ask them to have Scott sign it instead of their lawye=
r to assure admissability. DF

-----Original Message-----=20
From: Pavlou, Maria =20
Sent: Thursday, August 02, 2001 1:35 PM=20
To: Hartsoe, Joe; Harris, Steven; Porter, Gregory J.; Fossum, Drew; 'st=
ojic@gbmdc.com'; 'rnuschler@akingump.com'; Miller, Mary Kay

Subject: sid letter=20

Richardson has agreed to send us an additional writing regarding the other =
justifications for the volumetric negotiated rate. Joe Koury asked me to =
email the insert to the letter. Koury told me that he would reference the=
July 26 order and the fact that the Commission has requested additional in=
formation as to why the shipper entered into the subject negotiated rate tr=
ansaction, with Scott Walker stating that in reviewing his previous respons=
es he would clarify by adding the following: =20


Insert: =20
=20
Richardson Products proposed to share in a rate based on a daily spread as =
a volumetric rate because under that rate arrangement if the gas did not fl=
ow, Richardson was not obligated to pay Transwestern the rate. Richardson =
desired to avoid the risk, under normal demand service, of having to pay th=
e rate if the gas did not flow. The issue of whether the gas would flow w=
as a very real one at the California border (Needles delivery point) given =
the manner in which SoCalGas, the downstream party, confirms volumes for de=
livery with Transwestern. Specifically, SoCalGas has a windowing procedur=
e whereby it limits the amount of gas that Transwestern can deliver into Ne=
edles based on SoCalGas' allocation procedures and the amount of available =
takeaway capacity at the delivery point. [True?] Simply stated, if SoCalGa=
s did not confirm Richardson's nomination at the Needles delivery point, th=
e gas would not flow. The negotiated rate, as opposed to the rate for no=
rmal demand service, allowed Richardson to avoid the risks associated with =
Richardson's gas not flowing due to SoCalGas's windowing procedure. =20

Pls. review and comment asap. I promised Joe K. I would get it to him t=
onight or first thing tomorrow because he will be out all next week and agr=
eed to take care of this matter this week. Thanks, Maria