Powell relative working for Davis' re-election
The Contra Costa Times
October 12, 2001
<http://www.contracostatimes.com/news/california/stories/powell_20011012.htm>

Gov. Davis' campaign is fined $50,000
SF Gate News
October 12, 2001
<http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2001/10/12/MN139259.DTL>

Alternative SDG&E debt plan to get hearings
The San Diego Union Tribune
October 12, 2001
<http://www.uniontrib.com/news/uniontrib/fri/business/news_1b12power.html>

Edison pact could point way for PG&E
The Sacramento Bee
October 12, 2001
<http://www.capitolalert.com/news/capalert05_20011012.html>

Groups file plan for SDG&E debt
The San Diego Union Tribune
October 11, 2001
<http://www.uniontrib.com/news/business/20011011-9999_1b11briefs.html>

Powell relative working for Davis' re-election

SACRAMENTO -- A close relative of U.S. Secretary of State Colin Powell is working for Democratic Gov. Gray Davis' re-election campaign.

Andre W. Lewis, whose father's first cousin is Powell and who considers the prominent leader his uncle, has been hired as deputy political director of the Davis re-election committee.

Davis campaign adviser Garry South said the governor did not know of Lewis' connection to Powell until after he was hired. "That's not why we hired him," South said.

"I just thought he was a high-class, high-quality guy and that he would be a real addition to the staff," South said.

Raised in Southern California, Lewis, 37, has worked in politics at the national, state and local levels. According to the campaign committee, Lewis has served as chief of staff for U.S. Rep. Juanita Millender-McDonald, D-Carson, since 2000.

He also has worked for the California Democratic Party and served two stints in the U.S. State Department as a presidential appointee in the Clinton administration.

At the State Department, he worked as a senior official on European and Central Asian security issues and was a special envoy to the hostage negotiations during the Kosovo war, the committee said.

Lewis, who is working at Davis' Los Angeles campaign headquarters, declined to comment, and the campaign referred questions to South.

Lewis will help with political operations and outreach to the state's African-American community, public safety and veterans groups, according to a press release issued by the campaign.

Lewis, a Democrat, occasionally talks in the office about Powell and the U.S. response to the Sept. 11 terrorist attacks, South said.

"He doesn't wear it on his sleeve, but he's obviously proud of him," South said.

Davis is seeking a second term in office. In November 2002, he will face the winner of a March Republican primary.

Gov. Davis' campaign is fined $50,000

The Fair Political Practices Commission fined Gov. Gray Davis' campaign committee $50,000 yesterday for campaign reporting violations during his 1998 gubernatorial election.

The commission found that Davis' campaign failed to properly report nearly $161,000 in contributions.

It also said Davis' committee did not properly itemize about $101,000 in donations. While the money was listed in voluntary electronic filings, it was not properly reported on paper copies, the FPPC said.

Campaign officials also did not itemize more than $9 million paid to consultants to buy television campaign spots. The campaign also failed to show proof that it told major contributors that they had to file separate donation disclosures.

A spokesman for Davis' committee, Gabriel Sanchez, said the campaign did not intentional violate campaign laws.

"We make every effort to follow the letter of the law but in any campaign this large there are glitches," Sanchez said. "While it is regrettable, this is a small amount of infractions given the amount of money spent in the 1998 campaign."

Alternative SDG&E debt plan to get hearings

Approval of the governor's plan for paying the $747 million debt SDG&E says it is owed by its customers appeared less certain yesterday, as the president of the state utilities commission said she planned to hold public hearings for an alternative proposal.

Loretta Lynch, president of the California Public Utilities Commission, said in a local radio interview that regulators will hold hearings in San Diego regarding a plan from consumer groups that purports to save customers about $185 million more than the governor's proposal.

The groups said the earlier plan negotiated between the governor and the utility would be costly for consumers and a windfall for San Diego Gas & Electric.

At stake is how much SDG&E contributes and how much customers pay toward the debt, which accumulated in a so-called balancing account when SDG&E paid more for electricity than it was able to collect from customers during the power crisis.

Despite the plan for hearings, Lynch told KPBS-FM radio that the commission would make a final decision about how to resolve the controversial $747 million debt by November.

The governor and SDG&E announced their plan in June, saying it required the utility to contribute $319 million toward the debt and eliminated the balancing account without lengthy litigation or raising rates.

Consumer groups, led by the San Diego-based Utility Consumers' Action Network, say the governor's plan does not go far enough, particularly because SDG&E earned an estimated $400 million in profits from the sale of electricity during the power crisis.

Under the governor's plan, those profits are awarded to the company's shareholders, though SDG&E would use $219 million from the profits as part of its $319 million contribution toward the debt.

Under the consumer groups' plan, SDG&E would be allowed to keep some of the profits, but it would contribute $72 million more than it would under the governor's plan. The alternative plan also would require the utility to make other monetary concessions.

In a formal decision earlier this year, the California utilities commission said SDG&E's profits do belong to customers. SDG&E has sued to overturn the decision in court, but it has put the litigation on hold pending the utilities commission's resolution of the plan to pay the debt.

Michael Shames, executive director of UCAN, said yesterday that he was encouraged by Lynch's call for hearings on the consumer plan.

"There is $400 million at stake here," Shames said.

SDG&E said yesterday that it had not received formal notification about the hearings, nor had it yet seen the alternative plan for paying the debt.

A spokesman for the utility, however, repeated earlier comments that the company saw the alternative plan as an attempt to derail the PUC's process of considering the governor's plan.

Lynch also said yesterday that the utilities commission would continue to challenge the more than $40 billion in long-term electricity contracts signed by the state during the crisis.

Lynch said the agreements bind the state to overpriced power and are in violation of federal law requiring electricity rates to be "just and reasonable."

The utilities commission president said the contracts may be even more expensive than earlier thought because at least some of the power they bind California to purchase is not needed. The extra costs would damage businesses and family budgets, she said.

"If you have to pay three to four times more for energy, you don't have the money to grow your business or meet other needs of your family," Lynch said.

She also defended action by the commission last week that effectively delayed the sale of $12.5 billion in state bonds needed to pay power costs. Lynch said the commission supported a legislative proposal for floating the bonds, which would separate them from the long-term power contracts.

Edison pact could point way for PG&E

The multibillion-dollar settlement between Southern California Edison and California regulators could ultimately ripple well beyond homes and businesses in the south state.

It might form rough outlines for a deal that could pull Pacific Gas and Electric Co. out of bankruptcy without removing its assets from state regulation.

The pact between Edison and the California Public Utilities Commission also might presage a nimbler PUC, one likelier to strike closed-door deals without its typical months of testimony, briefs and hearings.

Along with its statewide impacts, which may not fully unfold for years, the settlement with the state's second-largest utility also raises uncertainties for its customers, who will pay billions to retire its debts.

One week after a federal judge approved the $6.35 billion pact to restore Edison to financial health after wholesale power costs spiraled out of control, it is becoming increasingly clear that much of the cost will be born by south state consumers.

From the start, the Edison rescue plan was a stealth settlement.

It was negotiated in secret, approved in a closed meeting and so murky that days afterward, even some PUC analysts were still debating just how much money was involved.

"It's definitely ambiguously worded," said Steve Linsey, a supervisor in the PUC's semi-independent Office of Ratepayer Advocates. On his first review of the deal, he thought about $1.7 billion would be paid by customers through future electric rates. But that figure will be at least $3.3 billion and probably higher, according to Edison and those who negotiated the deal for the PUC.

"There seems to be a lot of off-the-books interpretation in a direction that is unfavorable to ratepayers," Linsey said.

The PUC settlement emerged after the Senate and Assembly deadlocked over how much money should flow to Edison and what other benefits should be included for the company and some of its customers.

In addition, the PUC gave Edison permission to use small and large customers' rates to collect much of the money to pay off back debts, bypassing legislative bargaining to shield residential consumers.

And the PUC settlement took a much broader view of Edison's finances, sweeping in old debts and cash on hand, and then basically authorized a blueprint to pay off $6.35 billion in debts.

About three-fourths of that amount -- $4.9 billion -- appears to come from the utility's customers.

Edison's investors will pick up $1.5 billion -- $1.2 billion through eliminating shareholder dividends for three years, and $300 million as a company contribution.

The clearest-cut customer contribution flows into a $3.3 billion pot to be filled by future electric bills, probably through the end of 2003. But that's not their only contribution.

Another $1.6 billion would come from Edison's cash on hand, which includes money already collected from rates and loans that will eventually be repaid by customers.

"In the end, you're right, the vast sum of money here comes from ratepayers," said Brian Bennett, Edison vice president of external affairs.

But if Edison had won its suit, Bennett said, it would have been entitled to the full $6.35 billion, without its shareholders taking any hit at all.

No one can know who would have won the Edison suit. Both sides say they had compelling legal arguments. So why did the PUC, after maintaining publicly for months that it would prevail, chose to settle?

Partly, the commission was getting gloomy forecasts from the law firm it had hired, said PUC commissioner Richard Bilas. But he and others said there was another, looming fear.

The PG&E bankruptcy reorganization plan, filed Sept. 20, called for shifting utility assets, including the company's hydroelectric plants, nuclear plant, and gas storage and pipeline network, to a firm free from state regulation.

"People's calculus was shaken up by what PG&E did," said Mike Florio, an attorney for The Utility Reform Network, a consumer group. "It was just in the ether that 'oh God, there's something really ugly out there. We don't think they can get away with it, but we're not entirely sure.'"

The reorganization plan would leave a new PG&E company free to set its own rates for power that its plants produce.

That prospect horrifies regulators and lawmakers who have watched unregulated generators set market prices so high they crippled PG&E and Edison.

They plan to fight PG&E's efforts, and one of their key tools could be showing the judge that the PUC has been able to salvage Edison while keeping it regulated.

"They could say, 'judge, you don't have to do this bad deal that PG&E wants. We can work it out,'" said Randy Chinn, an adviser to state Sen. Debra Bowen, D-Marina del Rey.

For its part, PG&E maintains that the PUC should have helped it out last fall with something similar to the Edison deal. But now, the utility said, it prefers its bankruptcy reorganization plan.

PUC chief counsel Gary Cohen predicts that if the utility's efforts are rejected by the bankruptcy judge, PG&E will have to begin consultations with regulators for some sort of solution.

"I think it would be smarter to be talking now," he said.

A PG&E rescue wouldn't follow the Edison settlement exactly because PG&E's debts and costs are higher, Cohen said, but the PUC's goal would be the same goal it held for Edison: a healthy, regulated utility.

Consumer groups have blasted the settlement for funneling money to Edison after the utility was allowed to essentially pad its bills during the late 1990s to position itself for deregulation. A PUC majority took a similar stance for more than a year -- until the Edison settlement.

"We finally got to the point where we said look, we've seen the alternatives, and the alternatives are something like what PG&E is trying to do, or having the state take over the business of buying power," Cohen said.

Most people at the commission, he said, concluded that a regulated utility looks much more appealing than unregulated power plants or the state Department of Water Resources, which has been buying power for cash-strapped utilities since January.

Cohen, who orchestrated the Edison settlement negotiations, said they had to be kept quiet for fear that a leak could trigger a bankruptcy filing. Bilas said if it had leaked, so many people would have tried to stop the deal that it likely would have been torpedoed.

At a closed session before approving it, he said, every commissioner worried aloud that they were sidestepping their own frequent calls for due process, full information and proper hearings.

It is far too early to say whether more closed door deals will follow. Bilas, Florio and others predict the current PUC has little taste for them. But the five-member commission continues to evolve each time a term expires and the governor appoints a new commissioner.

"It scares the hell out of me what a really pro-utility commission would do with this," said Florio, the consumer advocate. "This could be the beginning of something really ugly."

In addition, if utilities see federal suits as way to slice through time-consuming PUC procedures, a flurry of suits could follow, said Linsey of the Ratepayer Advocates' Office.

Groups file plan for SDG&E debt

Consumer groups and others filed an alternative plan with the California Public Utilities Commission yesterday for dealing with the $747 million debt SDG&E says it is owed by its customers. The groups say their proposal will save ratepayers at least $185 million compared with an earlier proposal submitted to the PUC by the utility and state officials. Separately, the commission ordered San Diego Gas & Electric to apply all of an expected $124 million in savings from an earlier corporate merger to customers during 2003. SDG&E had asked to retain half the savings for shareholders.


I don't know if you have been keeping up with the recruiting info but Mack
has committments from 4 blue chippers already.  One of them is the top LB in
Arizona.  He is working his magic again this year.


Stephanie,  I reviewed the Confid. Agreement.  The attached riders need to be
added to the agreement and the term should not exceed 2 years.

Let me know if you want to discuss or have questions.


I am not going

 -----Original Message-----
From: 	Sweet, Twanda
Sent:	Wednesday, October 24, 2001 5:21 PM
To:	Sanders, Richard B.
Subject:	FW:

 -----Original Message-----
From: 	VIKKI ANAYA <vanaya_vitoltvl@yahoo.com>@ENRON
Sent:	Wednesday, October 24, 2001 10:31 AM
To:	Sanders, Richard B.
Cc:	Sweet, Twanda
Subject:

                                          AGENT JH/VA BOOKING REF
YVVYL7

                                          SANDERS/RICHARD B

  ENRON
  1400 SMITH
  HOUSTON TX 77002
  TWANDA SWEET X39402

  DATE:  OCT 24 2001

SERVICE               DATE  FROM           TO             DEPART
ARRIVE

CONTINENTAL AIRLINES  29OCT HOUSTON TX     WASHINGTON DC  120P    512P
CO 232     A          MON   G.BUSH INTERCO R REAGAN NAT
                            TERMINAL C     TERMINAL B
                                                          NON STOP
                            RESERVATION CONFIRMED         2:52 DURATION
                  AIRCRAFT: BOEING 737-500

HOTEL                 29OCT MARRIOTT JW HOTEL
                      31OCT 1331 PENNSYLVANIA AVENUE
                            WASHINGTON, DC 20004
                            UNITED STATES OF AMERICA
                            TELEPHONE: 1-202 3932000
                            FAX: 1-202 6266991
                            CONFIRMATION: 80473590
                            REFERENCE: CORA00
                            SINGLE ROOM
                            RATE: COR USD 199.00 PER NIGHT
                            GUARANTEE GIVEN

CONTINENTAL AIRLINES  31OCT WASHINGTON DC  HOUSTON TX     740A    955A
CO 227     A          WED   R REAGAN NAT   G.BUSH INTERCO
                            TERMINAL B     TERMINAL C
                                                          NON STOP
                            RESERVATION CONFIRMED         3:15 DURATION
                  AIRCRAFT: BOEING 737-500

RESERVATION NUMBER(S)  CO/VNC9GD

CO  FREQUENT FLYER COTP028685
*CONTINENTAL RECORD LOCATOR: VNC9GD
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THIS IS A TICKETLESS RESERVATION. PLEASE HAVE A
PICTURE ID AVAILABLE AT THE AIRPORT. THANK YOU
CONTINENTAL 005-7035412661/ETCO/USD1860.00/22OCT01
                  THANK YOU FOR CALLING VITOL TRAVEL

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VITOL TRAVEL
713 FARGO AVENUE
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713-526-0633-NEW NUMBER
1 800-724-7002

__________________________________________________
Do You Yahoo!?
Make a great connection at Yahoo! Personals.
http://personals.yahoo.com


---------------------- Forwarded by Greg Whalley/HOU/ECT on 03/08/2000 08:08
AM ---------------------------

Rahil Jafry
03/07/2000 03:13 PM
Sent by: Rahil Jafry
To: Louise Kitchen/LON/ECT@ECT, Dave Samuels/LON/ECT@ECT, David
Forster/HOU/ECT@ECT, Paul Goddard/LON/ECT@ECT, Awais Omar/LON/ECT@ECT, Greg
Whalley/HOU/ECT@ECT, Julie Ferrara/HOU/ECT@ECT, Mario Parra
Cardoso/Corp/Enron@Enron, Bob Shults/HOU/ECT@ECT
cc:
Subject: Williams' Energy Marketing and Trading Unit Acquires Equity Interest
In HoustonStreet.com...

---------------------- Forwarded by Rahil Jafry/HOU/ECT on 03/07/2000 03:07
PM ---------------------------

Williams' Energy Marketing and Trading Unit Acquires Equity Interest In
HoustonStreet.com

03/07/2000
PR Newswire
(Copyright (c) 2000, PR Newswire)

  TULSA, Okla., March 7 /PRNewswire/ -- Williams Energy Marketing & Trading
Co., a unit of Williams (NYSE: WMB), announced today that it is acquiring a
minority stake in Houston Street Exchange, a Web-based energy trading
exchange.

  Financial terms of the transaction were not disclosed.
  Since the launch of HoustonStreet.com in July 1999, Houston Street Exchange
has established itself as one of the industry's most dynamic
business-to-business exchanges for wholesale power trading.  HoustonStreet.com
recently announced plans to launch new Web-based platforms for trading crude
and refined products at the wholesale level.

  "Emerging technologies continue to change the way the energy industry
operates, and HoustonStreet.com is on the leading edge of the revolution.
Internet-based trading has exploded, and we believe that this investment will
allow us to play a significant role in the development of new markets and
platforms," said Bill Hobbs, president of Williams Energy Marketing & Trading.

  "The investment in HoustonStreet.com is just one piece of Williams'
eBusiness strategy," added Nancy Gustine, director of eBusiness for Williams
Energy Marketing & Trading.  "By acquiring a stake in this innovator in the
electronic-exchange industry, we can capitalize on our marketing strengths
while helping them transform the trading industry."

  "To have one of the leading energy companies in the country invest in our
trading platform is a direct validation of our technology and our vision for
the future of energy trading" said Frank Getman, president and CEO of Houston
Street Exchange.  "We look forward to Williams' market strength and support in
creating the premier online energy trading platform across multiple
commodities."

  Williams' energy marketing and trading unit buys and sells all types of
energy products nationwide including natural gas and gas liquids, crude oil
and refined products and electricity.  The unit also manages its customers'
exposure to volatile energy prices using comprehensive risk management
services and creates customized energy financing solutions for producers and
end-users.

  About Houston Street Exchange

  Designed by traders for traders, Houston Street Exchange represents the
first Web portal for the trading of wholesale energy products.
HoustonStreet.com provides an online trading engine that allows traders to buy
and sell their energy products faster, more efficiently and more easily than
they do today.  Houston Street Exchange is headquartered in Portsmouth, New
Hampshire, with offices in Houston, Texas.  Houston Street Exchange is a
majority-owned subsidiary of BayCorp Holdings, Ltd. (Amex: MWH).  For more
information, visit Houston Street at www.houstonstreet.com.

  About Williams

  Williams, through its subsidiaries, connects businesses to energy and
communications.  The company delivers innovative, reliable products and
services through its extensive networks of energy-distributing pipelines and
high-speed fiber-optic cables, comprehensive energy services, including
commodity trading and risk management, and business communications systems,
international satellite and fiber-optic video services.  Based in Tulsa,
Okla., Williams operates about $25 billion in assets.  Company information is
available at www.williams.com.

  Portions of this document may constitute forward-looking statements as
defined by Federal law.  Although the company believes any such statements are
based on reasonable assumptions, there is no assurance that actual outcomes
will not be materially different.  Additional information about issues that
could lead to material changes in performance is contained in the company's
annual report or form 10K, which is filed with the Securities Exchange
Commission.

/CONTACT:  Patty McKissick, Media Relations, 918-573-5738, or email,
patty.mckissick@williams.com, or D'Ann Riley, Investor Relations,
918-573-8088, or email, d'ann.riley@williams.com, both of Williams/
15:06 EST

Folder Name: Rahil Jafry
Relevance Score on Scale of 100: 82

______________________________________________________________________

To review or revise your folder, visit http://www.djinteractive.com or
contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com
or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511
or contact your local sales representative.)
______________________________________________________________________

Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved


Start Date: 1/20/02; HourAhead hour: 23;  HourAhead schedule download failed. Manual intervention required.

    LOG MESSAGES:

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Alan, he's out of town until Friday, so I will schedule early next week with
you and Dan.  Others are interested as well, so we'll probably have a full
interview schedule with him.  Thanks for the quick response.  Michelle

Alan Aronowitz
12/05/2000 10:46 AM
To: Michelle Cash/HOU/ECT@ECT
cc:
Subject: Re: Opportunities at ENA

Dan Rogers and I would each like to meet with Carlos for a potential position
with EGM. Could you arrange?

Alan

Michelle Cash
12/04/2000 10:04 PM
To: Lance Schuler-Legal/HOU/ECT@ECT, Travis McCullough/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Alan Aronowitz/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT,
Elizabeth Sager/HOU/ECT@ECT, Bruce
Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sheila Tweed/HOU/ECT@ECT,
Jeffrey T Hodge/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT
cc: Mark E Haedicke/HOU/ECT@ECT
Subject: Opportunities at ENA

Attached is the resume of Carlos Sole, who currently is working for EECC.  He
is interested in pursuing opportunities within EWS, and we received excellent
references about his work performance from John Schwartzenburg and Kay Mann.
I am meeting with him on Friday of this week (he is out of town until then).
If you have an interest in talking with him, let me know, and I will arrange
a meeting.

Thanks.  Michelle

---------------------- Forwarded by Michelle Cash/HOU/ECT on 12/04/2000 09:47
PM ---------------------------
From: Carlos Sole@ENRON_DEVELOPMENT on 12/01/2000 09:36 AM
To: Michelle Cash/HOU/ECT@ECT
cc: John Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Opportunities at ENA

Michelle, per my voicemail as I indicated, I am trying to pursue what
opportunities may be available at EWS and both Julia Murray and Kay Mann
recommended that I contact you.  As background, I have been at EECC since
October last year where I have focused on traditional EPC contracts and joint
venture agreements with construction partners, cross-border financing
agreements principally in Mexico and merger and acquisition/strategic
investment transactions.  Before coming to Enron, I worked with the Houston
office of a New York based firm (Curtis, Mallet-Prevost, Colt & Mosle)  where
I focused mostly on transactions in Mexico since we represented Pemex on
their transactions involving long and short term oil supply agreements and
CFE (Mexico's electricity commission) on its public bids for EPC and IPP
projects.  Lastly, I started my legal career in 1994 at Patton Boggs in
Washington, DC where I focused on general domestic corporate transactions
such as establishing new business entities (ie, joint venture work,
partnerships etc.), m & a work, and securities offerings.  Thanks for your
consideration and I look forward to talking with you when you return from
vacation (my extension is 6-6127).


Great.  I like the letter very much.  I am sure the Dunn committee will be
shamed into a public apology.  Mike

-----Original Message-----
From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com]
Sent: Wednesday, July 11, 2001 9:28 AM
To: MDay@GMSSR.com
Subject: FINAL

FYI.  Thanks very much for you help on this.  Let the games begin.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 07/11/2001 11:26 AM -----

Steven J Kean

Sent by:             To:     Jeff
Dasovich/NA/Enron@Enron
Maureen              cc:     skean@enron.com, Richard

McVicker             Shapiro/NA/Enron@Enron, Susan J

Mara/NA/Enron@ENRON, James D

Steffes/NA/Enron@Enron, Karen

07/11/2001           Denne/Enron@EnronXGate, Richard B

10:17 AM             Sanders/Enron@EnronXGate,
mpalmer@enron.com,
gfergus@brobeck.com, mlk@pkns.com,
Scott Govenar
<sgovenar@govadv.com>,
hgovenar@govadv.com
Subject:     FINAL

Attached is the final letter.  Please note - there was a small change at
the top of page 2.

(See attached file: Dunn Letter0711_KeanFinal.DOC)


I'm checking that out now.  Western Gas, Sid Richardson, and Duke have all looked at it before.

 -----Original Message-----
From: 	Gadd, Eric
Sent:	Friday, February 15, 2002 1:47 PM
To:	Hyatt, Kevin
Subject:	RE: TW lateral pipe sale

I'm out of town on Wednesday.  I'd like to see the economics and risks outlined before this getting too far down the road with Pioneer.  Are there any other prospective buyers?

 -----Original Message-----
From: 	Hyatt, Kevin
Sent:	Friday, February 15, 2002 11:32 AM
To:	Gadd, Eric
Subject:	TW lateral pipe sale

TW currently owns a section of pipe called the Gomez lateral located south of TW's West Texas #2 compressor station.  The lateral is approximately 35 miles long and is a 20-inch diameter pipeline.

The Gomez lateral is currently not in service and is filled with sweet gas.  Per Field Operations personnel, the last time the line was used was October 31, 2000.

Pioneer Gas Pipeline is an intratstate gathering and transmission company.  Pioneer has expressed a written interest in acquiring the lateral from TW for $2 million.  Current book value on the line is ______________ .

TW could file with FERC for abandonment of the pipe (and sale) under the existing blanket authority if:
	1) no IT gas has flowed for the 12 months prior to effective date of the sale or;
	2) no FT shipper has a firm receipt or delivery point on the lateral for the 12 months prior...If an FT shipper does have a valid contract on the lateral, then we would need to get the shipper to amend his contract to effectuate the sale.

Items to Verify:
 1) Identify any entity currently having firm receipt or delivery rights on the Gomez lateral
 2) Determine volume of gas in pipe and associated value for sale (field ops is checking)

Opportunities for TW:
By Pioneer puchasing and integrating the lateral into their system, they can effectuate incremental supply deliveries into TW.  This would reduce the amount of gas necessary for TW to transport south of WT-2 (via displacement) and make more supply available for deliveries going west.

A lunch has been scheduled with Phil Allard from Pioneer on Wednesday 2/20 if you would like to attend.