Extensions of cap rel contracts

pls print. df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 12/16/99 05:37
PM ---------------------------

From: Dari Dornan 12/16/99 11:02 AM

To: Mary Kay Miller/ET&S/Enron@Enron, Drew Fossum/ET&S/Enron@ENRON, Mary
Darveaux/ET&S/Enron@Enron, Mary Lou Hamilton/ET&S/Enron@Enron, Glen
Hass/ET&S/Enron@Enron, John Williams/ET&S/Enron@ENRON, Loren
Penkava/ET&S/Enron@ENRON, Karen Brostad/ET&S/Enron@Enron, Zuela
Carter/ET&S/Enron@Enron, Patricia Steele/ET&S/Enron@Enron
cc:

Subject: Extensions of cap rel contracts

Attached please find 2 draft letter to send to acquiring shippers with copies
to releaseing shippers.

Letter A is to go to those shippers that have not paid the November
invoices. Pursuant to the tariff, Northern can give notice to terminate the
service agreement. At such point, the service agreement reverts back to the
releasing shipper.The letter includes a notice that we consider the agreement
extended to 2003 per the rate case even without their execution.

Letter B is to go to those acquiring shippers that paid the November
invoices. For those service agreement with an original expiration date of
10/31/99, the payment constitutes acknowledgement that the agreement
continues to 2002 pursuant to the administrative amendment that extended the
agreement pursuant to the rollover provisions. The letter includes a notice
that we consider the agreement extended to 2003 per the rate case even
without their execution.

Do we want to add to both letters that if the amendment is not executed,
Northern will consider the releases temporary and the entitlement will revert
back to the releasing shipper by x date? or do we want to just wait until
11/1/02 and see what happens. (the revert back maybe should be in a separate
letter to the Releasing Shipper otherwise the acquiring shipper will just do
nothing and we'll be fighting with the releasing shipper anyway. I'm
rambling but hopefully you get the jist.

Please let me have your comments ASAP because I don't know when 30 days from
the invoice runs out. Considering they have ten days to pay and we know they
haven;t paid, we for sure only have 20 days. Thanks, Dari