FYI.  Is this the same on NNG and TW?  Thanks. Lynn

 -----Original Message-----
From: 	Laferla, Lynda   
Sent:	Wednesday, August 22, 2001 10:30 AM
To:	Aldinger, William; Collins, Marion; Conklin, Jacob; Coon, Galen; Cooper, Tim; Howard, Jack; Laferla, Lynda ; Phillips, Mary; Rivers, Cynthia
Cc:	Nacey, Sheila; Blair, Lynn; Studebaker, James ; Bryant, Mike
Subject:	Market Area Allocations


	I received a question this morning from FGU regarding a cut they got on contract 5141 for ID-2.  The total volume nominated on the

	contract did not change from ID-1 to ID-2, however, they did move around some volumes on their delivery points - (decreased some

	primary delivery points and increased alternate-firm delv. points).  When we did the Market Area allocation for ID-2, it looked at

	the "alternate point" increase as "incremental" - even though total contract volume remained the same.  I was somewhat confused by

	this cut  and talked with Joe Hoang.

	According to Joe:  PLEASE NOTE that the Market Area Flowing rights for a contract are retained by:

	1)   Contract
	2)   Gas Type
	3)   Nominator - Duns

	
	Therefore, if a shipper  has a total of 30,000 mmbtu's of flowing gas rights on a contract:  10,000 Alternate firm and 20,000
	of Primary firm and they change their nom - reducing the Primary firm volume to 15,000 and increase the Alternate firm
	volume to 15,000 - the additional 5,000 of Alternate firm would be considered "incremental".

	FYI

	Lynda