I've looked into whether we can terminate our Val Verde interconnect agreement with Burlington, and have determined we may do so only if we take the following steps: 1. Terminate the OBA by giving 30 days notice to Burlington. Paragraph 13 of the 6/1/94 OBA with Burlington (as successor in interest to Meridian) provides that either party may terminate the OBA "at the end of the primary term, or thereafter by providing thirty (30) days prior written notice" to Burlington. (The one-month primary term ended June 30, 1994 and has since gone month-to-month.) 2. On the effective termination date of the OBA, terminate the interconnect agreement by giving 30 days notice to Burlington. The 12/31/92 Interconnect Point Operating Agreement, Paragraph 6, provides that either party may terminate on 180 prior notice after expiration of the primary term. This is of limited use to us since the primary term does not expire until 12/31/02. However, the paragraph also provides that the agreement "may be terminated by either party upon thirty (30) days prior written notice in the event the OBA between the parties is terminated." As we've already discussed, termination of the agreement is an extreme measure from a customer relations standpoint and we probably need to weigh our other options first. Let me know if you have further questions.
Answer: PRIVILEGED & CONFIDENTIAL ATTORNEY-CLIENT COMMUNICATION Terminability of Val Verde interconnect agreement
Monika - I received some info today in the mail regarding a new master of science program in quantitative financial economics. It is being offered by Oklahoma State University and they have a lot of money for financial support. Perhaps you should consider it. If you send me your address, I will mail the information off to you today. Have a great Thanksgiving. Jim
Answer: Your address
I am seeing more and more credit derivatives. The trades originating in Houston are coming from Jeff Kinneman's bond/debt traders but are booked in the name of ECT Investments, Inc. or ENA. I can't be certain if these are backed to EnronCredit.com Limited. In particular, there is a proposed total return bond trade with DLJ International Capital requiring ECT Investments to post collateral. We have no master with this party. Who in Houston credit is looking at credit derivatives? FYI, other credit deals seem to be transacted wtih Deutsche Bank and UBS AG.
Answer: Credit Derivatives
Michelle/Kimberly, I was looking at the economics for Park-N-Rides (on the TW Mainline Leg) thought you might be interested in this: According to Gary Choquette, it costs us in fuel 1420 Mscf/d for storage of 42,502 Mscf of gas. Assuming a BTU factor of 1.00 and at a gas cost of $3.00 per MMBTU--fuel costs amount to $4260/day. Adding O&M to this (assuming 1/3 fuel cost), the total cost of this storage to us is ~13 cents.
Answer:
Park-N-Ride Economics