Re: Enfolio Contract

Dave,
I expect to be available most of the day on Tuesday and Wednesday. I am in
EB3863, however, please call me at ext. 36895 to make sure I am not out or in
a meeting before you come up.

Dave Fuller
10/12/2000 07:11 PM

To: Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: Re: Enfolio Contract

Hello Dan,

I'm going to be in Houston next week and I wonder if you might have a few
minutes that I could stop by and speak with you about my Kaiser gas deal.
Please let me know if there might be a good time on Tuesday or Wednesday.

Thanks,

Dave Fuller
503-464-3732

Dan J Hyvl
10/10/2000 04:18 PM
To: Dave Fuller/PDX/ECT@ECT
cc: Jeffrey T Hodge/HOU/ECT@ECT

Subject: Sample Enfolio Contract Form Attached

Dave,
I have attached the above sample form for your review. I have been unable
to find any documentation where we act as an agent for the shipper and
contractually agree to remarket their unused capacity. As soon as I find
some language, I will forward same to you. As we discussed, the major
concerns that I have concerning the Energy Marketing Services Agreement form
that Kaiser provided relates to the duties of the Marketer thereunder. ENA
is in the business of buying and selling natural gas for its own account and
as such any services it agreed to provide relating to most of the items under
Articles III and IV would be subject to claims of abuse or violation of
fiduciary duties. Specifically, ENA should not agree to perform the items
under Article IV, Section A. Parts 1-8, 11; Article IV, Section B.
Parts1-2, 4, 6; Article IV, Sections C, E, and F. Otherwise, ENA sales
obligations should be patterned in the manner set forth in the Enfolio
Contract which provides safeguards for both parties in the event of a default
by either.
Therefore, we need to work from our Enfolio contract and I will get you some
agency language for the confirm to address how we would share any
transportation savings that we were able to obtain for them during the term
of our sales transaction with them.
Please call me after you have had a chance to review the contract.