Message-ID: <4175604.1075855014062.JavaMail.evans@thyme>
Date: Fri, 16 Feb 2001 16:06:00 -0800 (PST)
From: drew.fossum@enron.com
To: steven.harris@enron.com, kevin.hyatt@enron.com, lorraine.lindberg@enron.com, 
	michelle.lokay@enron.com, jeffery.fawcett@enron.com, 
	susan.scott@enron.com
Subject: Re: sale of Red Rock expansion capacity
Cc: mary.miller@enron.com, keith.petersen@enron.com, sstojic@gbmdc.com, 
	fkelly@gbmdc.com, maria.pavlou@enron.com, lee.huber@enron.com, 
	shelley.corman@enron.com, jeff.dasovich@enron.com
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A couple of more things on Red Rock.  First, Shelley asked whether ENA part=
icipated in the open season.  If not, and if they are interested, or if Mav=
rix or any one else who didn't participate in the open season is interested=
, we ought to put something on the EBB that says "TW is now accepting bindi=
ng proposals for the capacity described in its ____, __ 2000 open season an=
d any shippers that didn't participate in that open season but who are inte=
rested in capacity should contact a TW marketing rep."  Or something like t=
hat.   Is there any problem with that?  Second, the Jeffs (Fawcett and Daso=
vich) and perhaps others will be talking to Danny shortly about a possible =
next phase expansion into California.  Someone please take point on passing=
 info from that meeting on to Shelley and MKM and me.  Shelley may want to =
have Stan tell Madden that we are looking at an additonal large expansion b=
eyond the one we are about to file.  The PR mileage might be useful but She=
lley will need to know as much as we can disclose outside about what we are=
 up to.  If we get serious about looking at something that goes beyond the =
Cal border we may want to hold that internally for a while and not tell Mad=
den.  On the other hand, I don't have any problem with Stan telling Madden =
that we have general concerns about whether pipe expansions within Californ=
ia will keep pace with interstate expansions to the border.  Jeff D's analo=
gy of the "four lane superhighway turning into a dirt road" is too good not=
 to use with Madden!  df     =20




Susan Scott
02/15/2001 05:33 PM
To:=09Mary Kay Miller/ET&S/Enron@ENRON, Keith Petersen/ET&S/Enron, Drew Fos=
sum@ENRON, sstojic@gbmdc.com, fkelly@gbmdc.com
cc:=09Maria Pavlou/ET&S/Enron, Lee Huber/ET&S/Enron@ENRON=20

Subject:=09sale of Red Rock expansion capacity

After consulting with the commercial people and Bros. Fossum, Stojic and Ke=
lly, I propose this simple plan for marketing the Red Rock expansion capaci=
ty.   Please let me know as soon as possible what you think of this. =20

Steps: =20

Marketers to contact shippers by phone and tell their contacts the followin=
g:

=09=09- bids will be accepted until 5:00, March 2
=09=09- we have a minimum NPV of $___ that must be met in order for the pro=
ject to be economic; bid accordingly
=09=09- Bids will be evaluated based on highest rate.
=09=09- Minimum term is 5 years.
=09=09- If there are tie bids that all qualify as highest rate and quantiti=
es bid upon exceed quantity available, the tie bids will be allocated pro r=
ata.
=09=09- Shippers should indicate whether they would be willing to have thei=
r bid capacity prorated in case an allocation is necessary.
=09=09- Bids should include:  1) service request and 2) offer letter statin=
g material terms (rate, term, points, quantity).  Offer is binding.  It can=
 include a regulatory "out," but cannot be "subject to management approval.=
"

The only shippers that will be contacted are those that responded to the No=
v. open season in a timely fashion.  (Drew, I found out this includes Calpi=
ne).

Explanation:

=09The commercial group decided (pending Steve Harris's approval) that they=
 prefer the "highest rate with a minimum stated term" over highest net pres=
ent value because it is consistent with Stan's stated preference for "front=
 loading" the contracts.  In other words, a shipper that bids $0.60 for 5 y=
ears beats a shipper that bids $0.35 for 15 years because it has bid the hi=
ghest rate.  =20

Questions? Comments?  Please reply soon.
Our marketers want to contact shippers tomorrow.  Competing pipelines are a=
lready out soliciting bids for their expansions...

