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Date: Fri, 1 Sep 2000 04:08:00 -0700 (PDT)
From: kevin.hyatt@enron.com
To: bullets@enron.com
Subject: Bullets 9/1
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El Paso Pipeline Update - The US Dept. of Transportation approved reinstating 
gas service for El Paso's Line 1100 damaged in the recent explosion.  This 
brought 400 million cfd of capacity back on stream to the California border.  
The ruptured Line 1103 will not be repaired until further investigations have 
been completed.  The availability of Line 1100 capacity had the following 
basis impact:  Permian to California basis for October dropped from Monday by 
$1.30/MMBtu while November '00 - March '01 and April - October '01 narrowed 
by $0.43 and $0.37 respectively.  Also, TW shippers are no longer using El 
Paso Window Rock as a receipt point on our system.

Transport Options Program - Representatives from 7 companies comprising a 
majority of TW's larger shippers attended our workshop on this new tariff 
filing.  All attendees were given in advance of the meeting a draft copy of 
the proposed filing for their review and comment.  The TW Team (Jeff Fawcett 
and Susan Scott) did an outstanding job of preparing the material, answering 
questions, and anticipating shipper concerns related to this new service.  
The only serious objections raised  by the customers were concerns related 
to: (1) potential abuses by marketing affiliates and (2) hoarding of option 
capacity by any one shipper.  Among the  solutions proposed were restricting 
Enron affiliates  access to the program and limiting the volume of 
outstanding options any one shipper can hold.  At the end of the meeting, we 
asked for final comments to be submitted to TW by next week in anticipation 
of filing the tariff with the FERC in mid-September.

KN/Oneok Contract -  We negotiated a 12 month max rate agreement with Oneok 
for 20,000 MMBtu/d of west flow capacity starting February 1, 2001.  We also 
negotiated in the contract a provision whereby if Oneok releases any of the 
capacity above the max rate, then TW shares 50/50 in the incremental revenue.

EOG Resources - We are negotiating a new transport agreement with EOG for 
incremental volume they could bring into TW's West Texas lateral.  Initially, 
the volume was 4 - 5,000 MMBtu/d but now may be at least 15,000 MMBtu/d.  EOG 
is reviewing the proposed interconnect and operating agreement.  EOG has not 
typically held transport capacity on TW in the past.

September Pipe Outage - We are trying to accommodate west flowing shippers 
whose transport will be cut from September 6-10 due to DOT testing on 
Transwestern.  The plan is to facilitate the use of PG&E Market Center 
storage to supply west markets during the outage.  Volume may be as high as 
20 -50,000 MMBtu/d at an incremental rate for TW of $.05 -.08/MMBtu.
