From: kevin.hyatt@enron.com
To: bullets@enron.com
Date: 2000-08-24 17:42:00+00:00
Subject: Revised Bullets 8/25

El Paso Field Services - EPFS has agreed to go forward on a new interconnect 
with TW in Eddy County, NM.  The size of the new interconnect will be 40,000 
MMBtu/d.  EPFS has agreed to pay $165,000 towards the cost estimate of 
$280,000 as well as commit 12,500 MMBtu/d throughput for a period of 2 
years.  Facility Planning is opening a new work order and we have begun 
drafting the Interconnect Agreement and the OBA for the new point.  The point 
should be active in 60 - 90 days.

Arizona Public Service - has still not signed the Transport Request for the 
14,000 MMBtu/d April - October 2001 capacity.  The current spread is $0.375 - 
$0.40.  

Red Cedar - has finally decided on their transport volume under our new 5 
year agreement.  Contract documentation is being prepared.

Sempra - has again exercised their option under their Gallup contract for 
21,500 MMBtu/d Permian to California for 1 year starting 11/1/01. The 
contract rate is $0.30 plus fuel.

Texaco is moving up to 100,000 MMBtu/d from PG&E Topock to Mojave starting 
8/21 through 10/31/00.  TW collected an incremental $.025/MMBtu for this move 
or approximately $160,000.

El Paso Outage-
 Current reports are the Office of Pipeline Safety is demanding El Paso hydro 
test, X-ray and ultrasonic test all 330 miles of pipe that is currently out 
of service due to last weekend's explosion.  It appears the 1 Bcf/d capacity 
to California may be off-line for up to one month.  

Related Developments
  --SoCal released capacity on El Paso for October 2000 to Dynegy at a 
reservation charge of $1.00/MMBtu.
  --Volume on various TW interconnect points has picked up on the east end 
including the new NGPL Winkler point.
  --We are receiving incremental volume from El Paso at Window Rock and 
collecting a portion of the market premium. 

Transport Options - a working group meeting with customers has been scheduled 
for Thursday August 31.  The objective will be to get everyone comfortable 
and build a coalition of support behind our new Options Tariff filing.

Burlington Resources - We held a conference call with John Hinton, Marketing 
Director, regarding the current operation of the Val Verde plant.  Our data 
indicates with the exception of a few T-5 temperature limit days, TW has been 
able to accept over 98% of the gas nominated by the plant.  In addition, for 
the last 2 years, the plant has been delivering gas with CO2 in excess of our 
specs.  We agreed our latest amendment draft could use some stronger language 
in terms of TW's obligations beyond a "best efforts" basis.   John indicated 
a willingness to work together as they were trying to schedule a delivery of 
215,000 MMBtu to us for Hub delivery.   We agreed to talk again next week 
once the volume test was complete.

SoCal Windowing - a conference call was held with Mike Nelson, Rich Jolly, 
Steve January, Terry Galassini, Darrell Schoolcraft, Ray Smith, Gary Choquet, 
and David Roentsch regarding TW's pressures and delivery capability at SoCal 
Needles.  Analysis indicates we have 35 pounds of pressure drop from our 
Needles measurement station to the SoCal station across the river 
(approximately two miles).  SoCal maintains that if we can give them 830 psi 
at their station, they can take the full 750,000 MMBtu under the contract 
(this translates to 870 psi at TW's meter with our current situation).  Our 
problem has been if we lose volume out of San Juan or a unit on the West of 
Thoreau leg, then we lose line pack and then pressure at the border.  SoCal 
acknowledges they have a motor out of service at Needles but plan to have it 
back on line in October.  But they maintain this won't help resolve the 
situation.  Operations has agreed to look at a number of things including 
changing the type of meter at Needles, looking at some station valve 
replacement, and mechanical condition of stations 1 through 4.  Marketing 
agreed to estimate the revenue impact of the pressure drop and lower volume 
delivery to help justify any capital expenditures.