Re: daily firm on TW

I think its not bullet proof, but certainly defensable. Lets do it. Thanks.
DF

From: Mary Kay Miller 03/21/2000 06:14 PM

To: Susan Scott/ET&S/Enron@ENRON, Glen Hass, Mary Darveaux, Drew Fossum
cc:

Subject: Re: daily firm on TW

If you lawyers can support this, I can also, but I believe it could be
challenged- MK

From: Susan Scott 03/21/2000 05:01 PM

To: Mary Kay Miller/ET&S/Enron@ENRON
cc:

Subject: daily firm on TW

The Commercial Group asked several weeks ago whether they can enter into
discount letters applicable to daily firm for as long as one year. The
standard wording of the discount letter applicable to daily firm is such that
the discount is effective for as many one-day terms as the FTS-1 agreement
renews, but not beyond a specified date. Typically TW enters into these
discount letters for a term of one month. The marketers say that they were
once told that they could not make such a discount applicable for longer than
a 3-month term. I see no basis for this limitation. The term of the FTS-1
agreement is one day, renewable from day to day. The discount is only
applicable for so long as the FTS-1 agreement renews. If the FTS-1 agreement
does not renew, the discount is no longer applicable. The basis for the
shipper's transportation rights is the FTS-1 agreement. We are not
guaranteeing a shipper "daily" firm for longer than a one-day term. The
discount letter merely states that, for so long as the FTS-1 agreement
renews, a particular discount applies, up to a certain cutoff date.
Does this make sense? I realize you are swamped, but I need to get Steve an
answer so that the marketers know what is acceptable. Drew and I have
discussed this and he is on board. Thanks.