For your convenience and/or use by your customers, I've revised the proposed 
term sheet to include the two (2) altenative sharing mechanisms that your 
customers should base their bids upon.  This term sheet also includes a 
second example of how the sharing mechanism works.





---------------------- Forwarded by Jeffery Fawcett/ET&S/Enron on 01/31/2001 
11:03 AM ---------------------------


Jeffery Fawcett
01/31/2001 09:54 AM
To: Lorraine Lindberg/ET&S/Enron@ENRON, TK Lohman/ET&S/Enron@ENRON, Michelle 
Lokay/ET&S/Enron@Enron, Susan Scott/ET&S/Enron@ENRON
cc: Steven Harris/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron 

Subject: Additional bid criteria

We've been asked to go back to the shippers and secure two (2) bids on the 
capacity.   Ask your shippers to look at the term sheet and give us a bid on 
(1) the [original] 30% sharing mechanism on alternate west flows, and (2) a 
50% sharing mechanism on alternate west flows.  Let them know we realize that 
the 50% sharing mechanism will likely result in a reduced reservation rate, 
however, we'd like to see both "looks" at the deal.  Also, whether we choose 
the structure with a 30% sharing, or the 50% sharing, let them know that 
we'll make our decision on best bid [on Friday] based on the highest NPV of 
reservation bid.