RE: Transcanada Questions

Agree

-----Original Message-----
From: Howard, Kevin A.
Sent: Thursday, November 01, 2001 6:51 PM
To: Cherry, Paul; Hayslett, Rod
Subject: RE: Transcanada Questions

Rod / Paul:

I would suggest that we mention that the financing would be secured by the assets of the company but that the final terms and conditions have not yet been determined. I would rather not say anymore just yet.

-----Original Message-----
From: Cherry, Paul
Sent: Thursday, November 01, 2001 10:27 AM
To: Howard, Kevin A.; Hayslett, Rod
Subject: Transcanada Questions

NNG ( Kent Miller and Dave Neubauer ) is in the process of entering into a Fixed Price Swap with Transcanada Energy Financial Products Limited for 7BCF for the months of June 02 to October 02 and 14BCF for June 03 to October 03. We presently have a guaranty from Transcanada Pipelines in support of TEFP, however it will have to be increased to cover the transaction. TCPL posed a question about NNG in regard to the 1B of financing. They want to know if the financing encumbers the assets of the pipes and what amount of the financing is attributed to NNG and TW. I did not reply. Please advise as to how I should respond.

Thanks and Regards.