bullets 9 / 1 el paso pipeline update - the us dept . of transportation approved reinstating
gas service for el paso ' s line 1100 damaged in the recent explosion . this
brought 400 million cfd of capacity back on stream to the california border .
the ruptured line 1103 will not be repaired until further investigations have
been completed . the availability of line 1100 capacity had the following
basis impact : permian to california basis for october dropped from monday by
$ 1 . 30 / mmbtu while november ' 00 - march ' 01 and april - october ' 01 narrowed
by $ 0 . 43 and $ 0 . 37 respectively . also , tw shippers are no longer using el
paso window rock as a receipt point on our system .
transport options program - representatives from 7 companies comprising a
majority of tw ' s larger shippers attended our workshop on this new tariff
filing . all attendees were given in advance of the meeting a draft copy of
the proposed filing for their review and comment . the tw team ( jeff fawcett
and susan scott ) did an outstanding job of preparing the material , answering
questions , and anticipating shipper concerns related to this new service .
the only serious objections raised by the customers were concerns related
to : ( 1 ) potential abuses by marketing affiliates and ( 2 ) hoarding of option
capacity by any one shipper . among the solutions proposed were restricting
enron affiliates access to the program and limiting the volume of
outstanding options any one shipper can hold . at the end of the meeting , we
asked for final comments to be submitted to tw by next week in anticipation
of filing the tariff with the ferc in mid - september .
kn / oneok contract - we negotiated a 12 month max rate agreement with oneok
for 20 , 000 mmbtu / d of west flow capacity starting february 1 , 2001 . we also
negotiated in the contract a provision whereby if oneok releases any of the
capacity above the max rate , then tw shares 50 / 50 in the incremental revenue .
eog resources - we are negotiating a new transport agreement with eog for
incremental volume they could bring into tw ' s west texas lateral . initially ,
the volume was 4 - 5 , 000 mmbtu / d but now may be at least 15 , 000 mmbtu / d . eog
is reviewing the proposed interconnect and operating agreement . eog has not
typically held transport capacity on tw in the past .
september pipe outage - we are trying to accommodate west flowing shippers
whose transport will be cut from september 6 - 10 due to dot testing on
transwestern . the plan is to facilitate the use of pg & e market center
storage to supply west markets during the outage . volume may be as high as
20 - 50 , 000 mmbtu / d at an incremental rate for tw of $ . 05 - . 08 / mmbtu .
bullets 9 / 1
el paso pipeline update - the us dept . of transportation approved reinstating
gas service for el paso ' s line 1100 damaged in the recent explosion . this
brought 400 million cfd of capacity back on stream to the california border .
the ruptured line 1103 will not be repaired until further investigations have
been completed . the availability of line 1100 capacity had the following
basis impact : permian to california basis for october dropped from monday by
$ 1 . 30 / mmbtu while november ' 00 - march ' 01 and april - october ' 01 narrowed
by $ 0 . 43 and $ 0 . 37 respectively . also , tw shippers are no longer using el
paso window rock as a receipt point on our system .
transport options program - representatives from 7 companies comprising a
majority of tw ' s larger shippers attended our workshop on this new tariff
filing . all attendees were given in advance of the meeting a draft copy of
the proposed filing for their review and comment . the tw team ( jeff fawcett
and susan scott ) did an outstanding job of preparing the material , answering
questions , and anticipating shipper concerns related to this new service .
the only serious objections raised by the customers were concerns related
to : ( 1 ) potential abuses by marketing affiliates and ( 2 ) hoarding of option
capacity by any one shipper . among the solutions proposed were restricting
enron affiliates access to the program and limiting the volume of
outstanding options any one shipper can hold . at the end of the meeting , we
asked for final comments to be submitted to tw by next week in anticipation
of filing the tariff with the ferc in mid - september .
kn / oneok contract - we negotiated a 12 month max rate agreement with oneok
for 20 , 000 mmbtu / d of west flow capacity starting february 1 , 2001 . we also
negotiated in the contract a provision whereby if oneok releases any of the
capacity above the max rate , then tw shares 50 / 50 in the incremental revenue .
eog resources - we are negotiating a new transport agreement with eog for
incremental volume they could bring into tw ' s west texas lateral . initially ,
the volume was 4 - 5 , 000 mmbtu / d but now may be at least 15 , 000 mmbtu / d . eog
is reviewing the proposed interconnect and operating agreement . eog has not
typically held transport capacity on tw in the past .
september pipe outage - we are trying to accommodate west flowing shippers
whose transport will be cut from september 6 - 10 due to dot testing on
transwestern . the plan is to facilitate the use of pg & e market center
storage to supply west markets during the outage . volume may be as high as
20 - 50 , 000 mmbtu / d at an incremental rate for tw of $ . 05 - . 08 / mmbtu .