-----Original Message-----
From: Hogue, Bill [mailto:BillHogue@aec.ca]
Sent: Wednesday, May 16, 2001 1:06 PM
To: 'lreid@sppc.com'
Subject: AECO Storage Proposals-May 16, 01


Lori Lei


Below are some examples of storage services that AEC Storage & Hub Services
can provide at the AECO Storage Facilities located in Alberta.  I priced out
a profile based on our conversation this morning where you indicated that
typically Sierra Pacific usually required a greater withdrawal rate then
injection rate.  I also selected an inventory capacity of 500,000 GJ
(Approximately 0.5 BCF), although I can price out the AECO storage at
utilizing different Withdrawal/Injection rates as well as different
Capacities if you desire.

Proposal #1 (10 Month)
Contract Profile: Standard Profile where Withdrawal/Injection rates are tied
to daily inventory levels, see table below for rate details.
Term: June 2001 to March 31, 2002
Capacity: 500,000 GJ
Withdrawal Rate: 20,000 GJ/d
Injection Rate: 14,000 GJ/d
Demand Cost: CAD 49,844 per month
Commodity: CAD 0.18/GJ on injection only

Proposal #2 (34 Month)
Contract Profile: Standard Profile where Withdrawal/Injection rates are tied
to daily inventory levels, see table below for rate details.
Term: June 2001 to March 31, 2004
Capacity: 500,000 GJ
Withdrawal Rate: 20,000 GJ/d
Injection Rate: 14,000 GJ/d
Demand Cost: CAD 44,860 per month
Commodity: CAD 0.18/GJ on injection only

The following table illustrates the Withdrawal/Injection rate profiles as it
relates to inventory for Proposals #1 &#2.

	MAX	MAX
	WITHDRAWAL	INJECTION
INVENTORY	RATE	RATE
(PJ)	(TJ/D)	(TJ/D)
0.00	10.0	14.0
0.05	12.0	14.0
0.10	14.0	14.0
0.13	15.0	14.0
0.15	16.0	14.0
0.18	17.0	14.0
0.20	18.0	14.0
0.25	20.0	14.0
0.30	20.0	12.6
0.35	20.0	11.2
0.38	20.0	10.5
0.40	20.0	9.8
0.45	20.0	8.4
0.50	20.0	7.0


Proposals #3 &#4 are based on Flat profiles for Withdrawal & Injection
regardless of your Inventory position.  These proposals provide maximum
flexibility.

Proposal #3 (10 Month)
Contract Profile: Flat
Term: June 2001 to March 31, 2002
Capacity: 500,000 GJ
Withdrawal Rate: 20,000 GJ/d
Injection Rate: 14,000 GJ/d
Demand Cost: CAD 85,882 per month
Commodity: CAD 0.18/GJ on injection only

Proposal #4 (34 Month)
Contract Profile: Flat
Term: June 2001 to March 31, 2004
Capacity: 500,000 GJ
Withdrawal Rate: 20,000 GJ/d
Injection Rate: 14,000 GJ/d
Demand Cost: CAD 81,182 per month
Commodity: CAD 0.18/GJ on injection only

Please review the above proposals and call me when you have had time to look
them over.  Additional please note that all the prices I quote above are
negotiable.  If you have any other profiles you would like priced please
give me a call and I'll get them priced out ASAP.

Thank you,