Spreadsheet: lindy_donoho__22125__Assumption in excel
Sheet: Rev Assump 2002 w Stretch

TW COMMERCIAL 2002 MARGIN PLAN |  |  |  |  |  | 2001-10-09 00:00:00
 |  |  |  |  | Reduced
Gas Index Prices: |  |  | 2002 |  | 2002 |  | 2001 |  | 2001
 |  |  | Plan* |  | Plan** |  | 3CE |  | Plan
January |  |  | 2.78 |  | 2.62 |  | 8.21 |  | 3.9
February |  |  | 2.78 |  | 2.62 |  | 5.62 |  | 3.75
March |  |  | 2.72 |  | 2.561 |  | 4.98 |  | 3.6
April |  |  | 2.61 |  | 2.45 |  | 4.87 |  | 3.49
May |  |  | 2.64 |  | 2.48 |  | 3.82 |  | 3.43
June |  |  | 2.69 |  | 2.53 |  | 3.19 |  | 3.42
July |  |  | 2.73 |  | 2.57 |  | 2.77 |  | 3.39
August |  |  | 2.77 |  | 2.61 |  | 2.77 |  | 3.41
September |  |  | 2.77 |  | 2.61 |  | 1.95 |  | 3.39
October |  |  | 2.78 |  | 2.62 |  | 2.28 |  | 3.39
November |  |  | 3 |  | 2.84 |  | 2.53 |  | 3.39
December |  |  | 3.16 |  | 3 |  | 2.85 |  | 3.44
Average
*TW weighted system average (Permian, Permian & San Juan) based on Cal '02 strip on 9/20/01.
**Reduced TW weighted system average (Permian, Permian & San Juan) based on Cal '02 strip on 9/20/01 by $.16 to get to $31.2 Mil fuel revenue
[NAME]
5000 | Day | 5.05
5000 | Day | 3.46
5000 | Day | 3.3625
Average
Additional over-retained fuel sales for January - May was assumed at the monthly index price.
A lesser amount of over-retained fuel sales will be assumed for June - December due to Red Rock Expansion.
Calculation For Fuel Used:
East =  East fuel retained x 110% (i.e. usage is higher than retained)
West = West deliveries x .018 (January - May); West deliveries x .022 (June - December)
UAF @  (.06%) - Same as 2001 Plan
Estimated West Flow (MmBTU/Day)
 |  |  | 2002 |  | 2001 |  | 2001
 |  |  | Plan |  | CE |  | Plan
January |  |  | 1020 |  | 1109 |  | 1014
February |  |  | 1022 |  | 1119 |  | 1018
March |  |  | 998 |  | 1110 |  | 967
April |  |  | 910 |  | 1104 |  | 949
May |  |  | 910 |  | 1075 |  | 959
June |  |  | 1072 |  | 1073 |  | 891
July |  |  | 1101 |  | 1090 |  | 885
August |  |  | 1117 |  | 1082 |  | 925
September |  |  | 1112 |  | 1020 |  | 935
October |  |  | 1119 |  | 1000 |  | 1055
November |  |  | 1075 |  | 1002 |  | 1014
December |  |  | 1072 |  | 1000 |  | 965
Avg. Throughput
Avg. Load Factor |  |  | 0.904 |  | 0.97 |  | 0.89
Assumed IT(Average MmBTU/Day & Rate) |  |  | 2002 |  |  |  |  | Stretch |  |  | 2001
 |  |  | Plan | Non-Contracted |  |  | Stretch | Rate | Rate | Rate | Plan
 |  |  | Vol. | Rate |  |  | Rate | Nov-Mar |  | Nov-Mar | Vol. | Rate
E of Thoreau to E of Thoreau |  |  | 21700 | 0 |  |  | 0.03 |  | 0.03 |  | 21700 | 0.03
San Juan to East |  |  | 7000 | 0 |  |  | 0.02 |  | 0.02 |  | 7000 | 0.056
[NAME] to El Paso Blanco |  |  | 87500 | 0.01 | Apr - Oct;    .005 Nov - Mar |  | 0.04 | 0.01 | 0.05 | 0.015 | 87500 | 0.015
[NAME] to Blanco Hub |  |  | 17700 | 0.01 | Apr - Oct;    .005 Nov - Mar |  | 0.04 | 0.01 | 0.05 | 0.015 | 17700 | 0.015
IT 2001 Plan: |  |  |  | $1.4 mil
IT 2001 Current Estimate: |  |  |  | $5.7 mil
IT 2002 Plan (Including Capital Revenues): |  |  |  | $2.4 mil
No estimated volumes/revenues for the following:
1) | USGT flow West
2) | West IT from PG&E to Needles, Mojave, etc.
3) | PNR
4) | No LFT/Daily Firms
 |  |  |  |  |  |  |  | Non-
Contract |  | Shipper |  | Start | End | Volume |  | Contracted | Stretch | Exposure
# |  |  |  | Date | Date | Per Day | Rate | Rate | Rate
Index to Index [NAME] at Hedge Price:
San Juan to West of Thoreau
27456 |  | Dynegy |  | 11/01/02 | 2002-12-31 00:00:00 | 21500 | 1.03 |  |  | 837894 | Amt. Above [NAME]
27454 |  | Reliant |  | 1/01/02 | 2002-12-31 00:00:00 | 27500 | 1.27 |  |  | 8841168 | Amt. Above [NAME]
Un-subscribed Contracts: ([NAME] at following rates)
East of Thoreau to East of Thoreau:
24198 |  | [NAME] (ROFR) |  | 6/1/95 | 5/31/02 | 35714 |  | 0.05 | 0
25374 |  | KN Processing |  | 6/1/98 | Mo./Mo. | 23000 |  | 0.05 |  | 419750
27291 |  | Duke |  | 8/1/00 | 7/31/02 | 20000 |  | 0.02 | 0
27377 |  | Agave |  | 3/1/01 | 2/28/02 | 10000 |  | 0.02 | 0
27579 |  | Duke |  | 5/1/01 | 5/31/02 | 20000 |  | 0.02 | 0
Total |  |  |  |  |  |  |  |  |  |  |  |  | 1272851
East of Thoreau to West of Thoreau: |  |  |  |  |  |  |  |  |  |  |  |  | Mavrix | -1040511
 |  |  |  |  |  |  |  |  |  |  |  |  | Mavrix | 299600
25841 |  | PG&E Trading |  | 2/1/00 | 10/31/02 | 40000 |  | 0.08 | 0.02 | 244000
26511 |  | PG&E Trading |  | 11/1/99 | 10/31/02 | 21000 |  | 0.12 | 0.08 | 256200
27340 |  | OneOk |  | 2/1/01 | 1/31/02 | 10000 |  | 0.12 | 0.04 | 1159982
27340 |  | OneOk |  | 2/1/01 | 1/31/02 | 10000 |  | 0.08 | 0.02 | 334000
Total |  |  |  |  |  |  |  |  |  |  |  |  | 2225382
Thoreau to West of Thoreau:
27583 |  | North Star Steel |  | 5/1/01 | 5/31/02 | 1300 |  | 0.04 | 0 | 13910 |  |  | 38948
[NAME] to Blanco
27342 |  | Sempra |  | 1/1/01 | 12/31/01 | 30000 |  | 0.02 | 0.082 | 1116900 |  |  | 0
[NAME] to Blanco:
N/A |  | Unsubscribed |  | July | Sept | 29000 |  | 0.04 | 0.04 | 213440 |  |  | 213440
Mavrix: |  |  | Non-contracted | Stretch
 |  | Volume | Rate | Rate
EOT to WOT |  | 14000 | 0.08 | 0
4/1/02-10/31/02
Blanco to Thoreau
1/1/02-10/31/02 |  | 32500 | 0.05 | 0
11/1/02-12/31/02 |  | 11000 | 0.05 | 0
Red Rock Expansion:
Assumed 40,000/day in June not sold.
Assumed (rest of Red Rock up to 120,000) |  |  |  | June | Dec | 13300 |  | 0.08 | 0.02 | 284620 |  |  | 398468
OUTAGES
No outages other than the Red Rock Expansion and [NAME]. 4 overhaul are assumed.
CAPITAL
Revenues: (Included in EOT to EOT STRETCH IT) |  |  |  |  |  | Stretch
Discretionary Pool (July - Dec) |  |  |  |  |  | 700000
Did not assume other Projects for 2002 besides Red Rock Expansion.  ???
1 | TransPecos Project |  |  |  | $135.5 Million
2 | Southern Trails Project |  |  |  | $80 Million
3 | Big Sandy |  |  |  | 550000
4 | [NAME] enhancements |  |  |  | 3000000
5 | Revenue Management-Phase III |  |  |  | 400000
SoCal Rate Dispute:
Assumed we get full SoCal rate in 2002.
Other Exposures:
CR #24198 | Sid | Sid has the right to suspend the transport service for 3 calendar months during any contract year
 |  |  | (contract year runs June - May)
 |  |  | Exposure included in the re-subscriptions on Page 1
CR #25071 | BP | With 60 days notice, BP may reduce MAXDTQ by 10,000/d (6,500/d from Ignacio, 3,500/d from
Blanco) |  |  | Exposure - $638,750 for full year (365 days x 10,000 x .175)
CR #26490 | Agave | Agave may reduce MAXDTQ by 15,000/d with 180 days notice (Option #1)
CR #26490 | Agave | Agave may reduce MAXDTQ by 15,000/d with 180 days notice, not earlier than
 |  | 1 year following exercising Option #1 (Option #2)
 |  | Exposure - $688,500 for Mar - Dec (306 days x 15,000 x .15)
 |  | Assumed notification on Sept 1 (6 months from Sept 1 begins March 1, 2002)
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