Cathy, At the request of Mitch Dutton, I have reviewed the form of 311 and intrastate gas transportation agreements provided to AEP by Duke Energy Guadalupe Pipeline, Inc. and by EPGT Texas Pipeline, L.P. As we discussed this morning, these agreements appear to be the standard form of agreement utilized by these counterparties. Although I have no authority to approve them for execution by AEP, had they been provided to me for execution by HPL, I would approve them for execution. Please note the Balancing and Penalties provision of the agreements for the charges which these parties could impose should receipts and deliveries get out of balance. If time permitted I would suggest that these charges be negotiated to something closer to the actual costs incurred by the transporter. However, it has been my experience that these parties are reluctant to change the standard form for standard transportation services. No contract documents have been provided concerning the TXU Lone Star Pipeline. The only documents faxed were two transportation services request forms.
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Gas Transportation Agreements