Re: Eastern New Mexico Gas Company

Ellen,
I have generated the attached for Kim Ward. I will let you know if the
counterparty elects to sign.

Ellen Wallumrod@ENRON
04/03/2001 11:16 AM

To: Dan J Hyvl/HOU/ECT@ECT
cc: Kim Ward/HOU/ECT@ECT
Subject: Re: Eastern New Mexico Gas Company

Dan,

As the confirmation will have so much special language and conditions and it
is a long-term trade, I would prefer if someone in Legal wrote it up.
Would that be OK Dan ?

Regards,
Ellen

Dan J Hyvl@ECT
04/03/2001 10:02 AM
To: Kim Ward/HOU/ECT@ECT
cc: Ellen Wallumrod/NA/Enron@ENRON

Subject: Re: Eastern New Mexico Gas Company

Kim,
We currently have a Master with Eastern New Mexico Natural Gas Association,
Inc. (Contract No. 96009607) therefor, the Confirm Desk can do the confirm
once it is put in the system.

Ellen,
Do you agree?

Kim Ward
04/03/2001 09:40 AM

To: Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: Re: Eastern New Mexico Gas Company

Dan,

Thanks for looking at this for me. I did remove the phrase you mention in
number 1 below. As for a volume cap, I don't think that one is necessary in
this case. Their TW contract limits them to 1000 MMBtu/day. Any prices that
are fixed will not include TW transport charges.

Thanks again,

Kim

ps, once their board approves this term sheet, we will need to do a
confirmation. Will this be generated by you or when the deal is entered into
the system?

Dan J Hyvl
04/02/2001 08:55 AM
To: Kim Ward/HOU/ECT@ECT
cc:
Subject: Re: Eastern New Mexico Gas Company

Kim,
I have reviewed your term sheet and have the following questions.
1. Under Term, you have included the phrase "with annual redetermination"
however I find no redetermination language in the Price section. I would
suggest that the phrase be deleted.
2. Under Quantity, you indicate there expected volumes, however, we need to
put some cap on the maximum, With a 5 year term, we should offer some maximum
such as 200% of the expected volumes. Any thoughts relating to a cap?
3. Under Price you indicate that the price could be changed to a Fixed
Price, I assume that you do not intend to include the Transwestern
transportation charges as a part of the Fixed Price. Is this correct? and
if so, does the Fixed Price language need to be qualified?
Otherwise, the term sheet appears okay.
Dan

Kim Ward
03/29/2001 03:52 PM

To: Dan Hyvl
cc:
Subject: Eastern New Mexico Gas Company

Dan,

Attached is a term sheet that has been sent to Eastern New Mexico gas company
to extend a four year deal that ends on April 30, 2001. Could you look into
the confirmation for this transaction? They will be going to the board for
approval at the end of next week so you have some time. Sorry to bombard
you!! This one should be easy.

Thanks,

Kim