Spreadsheet: vkaminski__40808__LNG Contract Summary
Sheet: ELBA

Enron LNG Terminal Capacity Agreement
Terminal: Elba Island
Buyer:  Enron Americas LNG Company
Seller: Sonat Energy Services Company
Term: 17 years  (April 2002 thru December 2018??)
Extension Option: Enron has the right to extend the term for an additional 5 years by giving notice to
Sonat at least 3 years before the end of the original term.
Quantity: The LNG equivalent of 58 BCF per year.
Price of LNG: (all prices are paid based on delivered volumes less [NAME] fuel and return gas)
Confirmation of Delivery at least 30 days before month of delivery:   IF - Henry Hub Index + $.02
Confirmation of Delivery 10 to 30 days before month of delivery:      IF - SNG Louisiana Index
Confirmation of Delivery less than 10 days before month and at least 8 days before delivery:  Gas Daily Low
Average Louisiana Onshore-South, Sonat for the 30 day period starting on the 8th business day before delivery.
Redelivery Option: Enron has the option upon 90 days prior written notice to repurchase LNG delivered by
Enron to the [NAME] facility at the same price paid by [NAME] for the LNG.  This repurchase takes place at the
tailgate of the [NAME] facility in equal daily volumes in increments of 10,000 mmbtu's per day.  Each redelivery
option is for a minimum of 21 months and may be cancelled thereafter only upon 90 days prior written notice to
Sonat.  If Enron elects to transport the redelivery gas on SNG's pipeline system, Enron must subscribe  to firm
transportation from SNG for at least 10 years in the amount equal to the redelivery volume.
Terminal Costs:
Fixed  -  Each month Enron shall pay to Sonat the sum of 41% A) the fixed monthly cost under the Services
agreement between Sonat and SNG for terminal capacity plus B) vaporizer refurbishment up to $6mm plus
C) vaporizer addition up to $6mm (the total cost of Vaporizer improvements not to exceed $10mm).
Variable  -  Each month Enron shall pay to Sonat Enron's share of the actual total variable monthly costs
under the agreement between Sonat and SNG plus 41% of the monthly operating costs attributable to the
vaporizer improvements plus 41% of the amortization of costs incurred by Sonat under the Services Agreement
with SNG before the Payment Commencement Date other than Vaporizer Improvement Costs.
Capacity:  Each year the parties shall determine the effective capacity of the [NAME] facility.  If the capacity is
determined to be below 140 BCF, Enron's capacity will be lowered to be the equal of 41% of the total.  Enron
shall still be liable for Terminal Costs as outlined above.  If after Vaporizer improvements, the capacity is
determined to be greater than 160 BCF, then Enron shall have the right to take up to the lesser of 41% of
the additional capacity or 41% of the capacity in excess of 160 BCF.
Commencement of Nomination:  On or before January 1, 2001, Enron shall provide Sonat with a 365
day delivery window for the 1st cargo to be delivered to [NAME].  180 days before the beginning of the 365 day
window, Enron shall provide a 180 day window for the delivery of the 1st cargo.  60 days before the 180 day
window, Enron shall provide a 1 month window for the delivery of the 1st cargo.  The delivery of the 1st cargo
shall be defined as the start date.
[NAME]:  (Special Language) Enron shall not be excused from delivery of LNG due to events effecting
LNG equipment of terminals unless it relates to affiliated LNG properties in Venezuela or the vessels used to
transport LNG from Venezuela.