
Date: Mon, 11 Dec 2000 05:54:00 -0800 (PST)
From: steve.gillespie@enron.com
To: beverly.beaty@enron.com, mark.breese@enron.com, joann.collins@enron.com,
chris.germany@enron.com, scott.hendrickson@enron.com,
dick.jenkins@enron.com, victor.lamadrid@enron.com,
robert.superty@enron.com
Subject: Penalty Summary - VNG - Columbia Gas Transmission (TCO) - November
2000
Cc: stevieg94@hotmail.com
Bcc: stevieg94@hotmail.com

High Level Penalty Summary

Date(s) of Flow

November 18 - 21, 2000

Contract Involved:

38088  ENA delivered 33,250 to Hopewell on this contract for dates below.
VNG needed volume below to balance at gate, attempted to pull    and contract
was overrun.

18 VNG took 29,782 from storage, result of both ENA and VNG was 14,002
overrun.

19 VNG took 44,476 from storage, result of both ENA and VNG was 28,696
overrun.

20 VNG took 37,643 from storage, result of both ENA and VNG was 21,863
overrun.

21 VNG took 56,881 from storage, result of both ENA and VNG was 18,876
overrun
______

Total Overrun: 83,437 @ $0.1992 =  $16,620.65

60536  ENA delivered 11,451 back into the VNG storage as payback when VNG
pulled all 14,625 and overran the contract.

21 14,306 overrun
______

Total Overrun: 14,306 @ $0.1992 = $2,849.76

TFE  Total Firm Entitlement Penalty

18-21 97,743 @ $5.6684 = $554,050.00

Total Overrun on both contracts and penalty due to market area
restrictions when overrun occurred.

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1) Enron NA was never notified by TCO of any penalty, overrun on VNG contract
or pipeline OFO situation during the November 18-21 time period.

2) Denise Dotson was notified by VNG gas control on the morning of November
20th about the overrun situation above.  The VNG gas control experienced  the
problem but did not notify Enron or AGL until Monday morning.

3) Enron immediately placed ranking system in Navigator to make VNG first
priority.  This was completed Monday afternoon November 20th.

4) On Tuesday morning 11/21, Denise Dotson once again called Enron stating
that the previous night VNG attempted to pull maximum  volumes from   storage
contracts only to overrun contract due to ENA nominations to other delivery
points.  Joann Collins called her Columbia team and was told that the
ranking was not applicable after the last confirmation cycle on any gas day
with no-notice contracts.  Ranking has zero effect with the late night
schedulers.

5) Enron dropped the Hopewell nomination from the VNG contract(s) effective
11/22.






