John,

Attached is the estimated notional bid for the 10-year term gas (9/2001-8/2011) delivered per your proposed project with National Fuel.

The bid as of Tuesday's closing prices comes to $4.63/MMBTU with the following assumptions:

1)  Per Goeff Storey, the basis spread is zero from the mid using the CGPR-Niagara curve.

2)  National Fuel will deliver the gas on the NFG system at Niagara.  The desired point per Storey would be on TCPL/Niagara system on the Canadian side of the border and hence a 5 cent discount has been applied for transport.    It is possible that it could be negotiated with NFG to deliver the gas on the TCPL/Niagara system.

3) Nymex bid is six cents off the mid for a ten year quote of this (small) size.

Let me know if you have any further questions.


Thanks,

Charlie
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