
Date: Mon, 16 Oct 2000 06:30:00 -0700 (PDT)
From: chris.germany@enron.com
To: scott.goodell@enron.com, steve.gillespie@enron.com, dan.junek@enron.com,
victoria.versen@enron.com
Subject: Lunch with Tenn

James Eckert with Tenn has agreed to have lunch with us on Wednesday.  I
don't think we all need to go and I don't need to go either.

He is going to educate us on the VNG contract #47.  The demand charge and
commodity is discounted effective 11/1/2000.  This is what we know about the
contract:

MDQ = 16,373 eff 11/1/2000
The 1st 4723/day that we flow is at a discounted  commodity of $.05 and
discounted demand of $6.08
If we flow more than 4723/day the demand goes to $7.61

What I need to know is exactly how the demand charge will be calculated for
volumes over 4723 day.
What is the demand charge if we flow 6000/day  for November -
is it 141,690 (4723 x 30) @ $6.08 and 38,310 ([6000-4723] x 30) @ $7.61.
