
Date: Mon, 13 Mar 2000 05:06:00 -0800 (PST)
From: joan.veselack@enron.com
To: katherine.kelly@enron.com, colleen.sullivan@enron.com
Subject: Citygate Production GAS behind TCO - PLEASE READ
Cc: chris.germany@enron.com, wade.price@enron.com, victor.lamadrid@enron.com,
robert.allwein@enron.com, joann.collins@enron.com
Bcc: chris.germany@enron.com, wade.price@enron.com, victor.lamadrid@enron.com,
robert.allwein@enron.com, joann.collins@enron.com

Kathy, we may need Colleen Sullivan's interpretation of behind the citygate
production. Back in January, Noel Bartlo told me these deals stayed with CES
Retail. John Singer believes the deals stay with him at Enron. If these deals
stay with Enron, should they be at EES... since they are behind the citygate
or do they stay with Enron to reduce the TCO delivery to the citygates for
CES?  This could be a can of worms.

Colleen, what is the contract interruption? Does the citygate production
deals stay with Enron? If they stay with Enron, then does CES realize this?
Are the producers receiving two payments, one from Enron and one from CES.
Maybe this has already be discussed and decided, but I haven't heard the
official word.

Currently these citygate production deals are deducted from the citygate
delivery that CES needs. The numbers that Herndon LDC schedulers provide to
Enron are reduced by the production. I think Chris put these buy/sells in the
system to appease John and keep the Enron accounting system whole. Currently
the market demand tickets in Sitara are reduced by the citygate supply. The
pathing could be made easier by hooking up the citygate production supply to
the market demand tickets, but the market demand numbers need to be
increased. Then you could eliminate the buy/sell tickets that Chris Germany
has been creating.

However if this production gas is not Enron's, then Enron is creating a lot
of unnecessary work and the producers are probably receiving two payments.









