Enron Mail

From:kim.ward@enron.com
To:dan.hyvl@enron.com
Subject:RE: Enfolio Master Firm Purchase/Sale Agreement
Cc:
Bcc:
Date:Thu, 5 Apr 2001 01:21:00 -0700 (PDT)

Dan,

An EFO is a result of parties not complying with an OFO after multiple
notices. PG&E can confiscate gas if a scheduling party is not in
compliance. The same rules apply to an EFO as an OFO. EFO stands for
Emergency flow order.

Thanks,

Kim




Dan J Hyvl
04/04/2001 04:31 PM
To: "Kolling, Grant" <grant_kolling@city.palo-alto.ca.us<, Kim
Ward/HOU/ECT@ECT
cc:
Subject: RE: Enfolio Master Firm Purchase/Sale Agreement



Grant,
I have removed the red-line from the above document. If it is in order,
please print 2 originals, have them signed, and forward to me for signature
by Enron. I will attach a list of current traders who might be available to
handle a trade with Palo Alto, and I will also have a certificate of
incumbency attached for the officer signing in behalf of Enron, and return a
fully executed contract for your files.
Regarding the OFO language, usually the pipeline notifies its customers of
the OFO event and leave it to those customers to notify their parties.
Therefore, if Enron is scheduling gas into your transport contract and your
transporter declares an OFO, you will get notice and be responsible for
giving that notice to Enron after which time Enron would be responsible for
its actions that were not in accord with the OFO notification. Likewise, if
Enron receives notification from its transporter and notified Palo Alto and
Palo Alto failed to adjust its actions in compliance with the OFO
notification, Palo Alto would be responsible for the consequences of such
failure. Usually, the OFO notification would require that the parties make
their receipts and deliveries balance in accordance with their scheduled
volumes. I am not familiar with the concept of EFO, but do not think that
the OFO provisions apply. Please advise as to what is meant by EFO so that I
can verify with the transport group.