Subject: "El Paso".

Body: Here is the Commission's basic policy on reverse open seasons. I've asked Randy Rich to look into the other aspects of your questions, which we'll discuss shortly. The Commission has a two-step process for determining whether the market finds an expansion project economically viable. The first step, which occurs prior to the certificate application, is for the pipeline to conduct an open season in which existing customers are given an opportunity to permanently relinquish their capacity. This first step ensures that a pipeline will not expand capacity if the demand for that capacity can be filled by existing shippers relinquishing their capacity. The second step is that the expansion shippers must be willing to purchase capacity at a rate that pays the full costs of the project, without subsidy from existing shippers through rolled-in pricing. The reverse open season requirement (i.e., the requirement that a pipeline give customers the opportunity to turn back capacity) is established Commission policy. It was stated in the Commission's Pricing Policy for New and Existing Facilities Constructed by Interstate Natural Gas Pipelines, 71 FERC P61,241 at p. 61,917 (1995), reh'g denied, 75 FERC P61,105, and later reiterated in Certification on New interstate Natural Gas Pipeline Facilities (Certificate Policy Statement), 88 FERC P61,227 (1999), order clarifying statement of policy, 90 FERC P61,128, order further clarifying statement of policy, 92 FERC P61,094 (2000). My research has indicated that the Commission has provided few specifics on how a reverse open season is to be conducted. This probably allows pipelines considerable discretion in how they conduct their solicitations of turnback. General Commission policy would probably require only that shippers be given adequate notice of and opportunity to respond to the reverse open season. If the procedure used by El Paso for soliciting turnback becomes an issue, please let me know and let's discuss it. I'll be up in a few minutes for our call to Randy.

Subject: "Sun Devil update meeting Monday 11/12 cancelled".

Body: I will be travelling on 11/12 so here's the update: Sonoran Pipeline - Received offer price from Kinder Morgan to purchase capacity on their project. Marketing - Panda Energy - Presented capacity offer to Panda on 11/6. They liked the swing capability, but fuel is an issue. They will present the offer to their partner TECO. We expect their counter offer by week end 11/16. AZ Public Service - Scheduled next meeting for 11/16 in Phoenix. Working on finishing Pre-pay and SFV rate designs. El Paso / FERC - No word yet on direction of Full Requirements settlement. Copper Eagle Gas Storage - No word yet on our submitted bid. Leave me a voicemail if you have questions. thanks

Subject: "Your approval is requested".

Body: I do know Susan so I could probably approve this request. However, in my staff meeting on Monday ( I know that Katherine was there, and not you), one of the major points that I made centered around my approval of requests for EOL access. We can discuss when we get together on Friday morning. Susan needs to put her managers name at the bottom of this form, and the manager should okay this as well. --Sally

Subject: "D Parsons".

Body:
Jeff, Let me know what you think of this guy. Wade Cline and Tim Det. are both high on him. Jeff Donahue is not so sure but will meet with him on Friday. During my lunch with Jeff, we discussed that we need a Corp. Dev guy dedicated to us full time but if he reported to him, that would be great. I think we could use that co-ordination with his group as long as we didn't get a part time guy in the process. He could also report to us obviously (like Larry) but i think in this case a dual role makes a lot of sense. What do you think? If you like Don, he could be an immediate candidate to start doing our Corp Dev work, but that is of course not the best reason. I thought he was all right and he did have a good understanding of our products and is an innovative thinker. He has also worked as a trader and although it doesn't seem possible by his personality, having some background is a plus. Mike