Approved.




Christine Stokes
05/31/2000 08:35 AM
To: Lorraine Lindberg, Steven Harris/ET&S/Enron@ENRON, Drew 
Fossum/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Glen 
Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Bill 
Cordes/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON
cc: Kevin Hyatt/ET&S/Enron@Enron 

Subject: Transwestern CAF Request

TRANSWESTERN PIPELINE CONTRACT APPROVAL REQUEST


Please review the attached non-standard discount letter to Southwest Gas 
Corporation (SWG).  SWG shall enter into a 10 year agreement  for 14,000 
Dth/d of seasonal (November through March) capacity effective November 1, 
2000.  The transport rate of $.15/Dth/d shall increase annually by 
$.005/Dth/d.  The primary path shall be from Tranwestern's  East of Thoreau 
(EOT) Area  to the SWG Interconnect located in the East of California Area.  
Alternate receipt point rights shall be from Tranwestern's EOT Area and from 
the Bloomfield Compressor.   SWG ROFR rights shall be wiaved. In 
additionTranswestern shall propose  to retain revenues generated by capacity 
release at rates higher than the effective contract's discount rate.

(Please note that the FTS-1 Appendix A - not shown here with the discount 
letter-  specifically indicates 0 MMcf/d capacity for the April through 
October period.  Therefore, even though the $.1500/MMBtu rate in Paragraph 3 
of the discount letter does not indicate the rate is a "seasonal rate", the 
effective billing to SWG shall be seasonal.)

Please indicate your approval via REPLY WITH HISTORY.   All Officer approvals 
shall be faxed to Bill Cordes for final Officer approval.