bullets 10 / 27 el paso blanco mis - measurement - the 518 , 000 mmbtu of gas agreed upon in our
settlement letter with el paso has been paid back to tw as of october 25 .
southwest gas - swg agreed to amend the start date of their transport
contract to november 15 . tw resold the space along with an additional 1000
mmbtu / d for a total of 15 , 000 mmbtu / d to sempra energy at $ 0 . 15 ( slightly
above market but equal to the rate swg was originally paying ) . morgan
gottsponer sold sempra the gas for this transport deal .
burlington resources ' val verde plant - we held another conference call with
br this week to finally resolve the outstanding issue of tw ' s obligation to
take 250 , 000 mmbtu / d from burlington ' s val verde plant . operational
restrictions and san juan temperatures seasonally affect the amount of volume
tw is capable of receiving from val verde . br had claimed damages of nearly
$ 3 , 000 , 000 from having to sell san juan gas into less attractive markets
because tw could not take all their volume .
upon investigation , there were actually very few days in which tw hampered
burlington ' s deliveries ; but tw does have an exposure here for a contractual
commitment that operationally we cannot meet on a year - round basis without
spending several million dollars for additional compression . in exchange
for burlington signing an amended operating agreement that meets both parties
needs , tw has agreed to refund $ 100 , 000 of transport charges to br for gas
they moved this summer down the san juan lateral .
transport options program - comments and interventions on this filing are due
from interested parties by the close of business monday october 30 th .
duke energy - we are working on a 100 , 000 mmbtu / d east - to - east transport deal
with duke beginning in january 2001 for one to two years at a rate of $ . 02
- . 03 . this deal would justify the capital expenditure to replace the coolers
at wt - 2 and give tw another 50 , 000 mmbtu / d flow capacity on the west texas
lateral . however , duke wants alternative flow capability west to the border
at an incremental $ . 06 . as an alternative , we are proposing an index - based
sharing mechanism for the west flow but duke is balking ( current market for
calendar 2001 net of fuel is $ . 205 ) .