Alabama Gas Corporation

Stacy said you were working with Alagaso on this. Got some questions for ya.

Thanks!
Cyn
---------------------- Forwarded by Cyndie Balfour-Flanagan/Corp/Enron on
09/26/2000 10:05 AM ---------------------------

Cyndie Balfour-Flanagan
09/25/2000 06:29 PM
To: Stacy E Dickson/HOU/ECT@ECT
cc:

Subject: Alabama Gas Corporation

Per my rambling voicemail: Alagaso (Alabama Gas Corporation) has sent two
termination letters requesting termination of two of the 3 CES contracts
(sorry for the confusion on the voicemail - - -- brain starts to slip after
lunch). All three of the contracts aren't our favorites per our earlier
conversations/e-mails dating back to the beginning of round 2, duplication
clean-up. The largest problem; the 1991 contract that they are terminating
has the greatest Max. Daily Quantity (20,000/day) (this was the one we were
favoring out of the three). However, the combined daily quantity on all the
outstanding deals by far exceeds the MDQ. A schedule of the outstanding deals
on the 9/1/91 (96029223) is attached. If we have the new contract in hand, I
can enter the new contract & hopefully move these deals over (the ones for
which gas has not yet flowed) - - - - - - we can split & move any deals for
which gas is currently flowing - - - - - - - we will need the Confirm group
to reconfirm. This is assuming that we do indeed have the new agreement
executed by both parties.

Back to the letters, they want our signature to waive the 90 day notice. The
1990 contract have been on trading suspended status since 7/18/00 & has no
outstanding deals. So, if we are 'okay' with that - - - - - there are no
loose strings (if okay, do you want to sign?). However, on the 1991 contract
there are LOTS of loose ends - - - - - -- what is your recommendation?

Fun stuff eh? I've left messages with Tammi DePaolis, the trader working with
Alagaso, about the above referenced scenarios. Apparently Alagasco was wanted
these letters back tomorrow (9/26/00).

I've attached copies of all of the contracts in question for your review. I
have the letters in hand.

Thanks!!
Cyndie