Hunter

Did you know that the Extrinsic value of the Northern Border Trasport from Ventura to Chicago has increase from 4.7 Million to 
7 Million over two months.  

Lavo
 -----Original Message-----
From: 	Sullivan, Colleen  
Sent:	Tuesday, February 13, 2001 10:32 AM
To:	Keavey, Peter; Cuilla, Martin; Holst, Keith; Allen, Phillip; Shively, Hunter; Neal, Scott
Cc:	Lavorato, John
Subject:	EXTRINSIC VALUE WORKSHEET

John Lavorato expressed concern last week that we may be falling into the same trap again regarding the extrinsic value in our transportation books.  I prepared a spreadsheet summarizing the EXTRINSIC VALUE ONLY (in total and $/MMBtu) that were in each of the books as of 12/5/00, 1/2/01 and 2/1/01.  Hopefully this will provide you with the information necessary to determine if this is, in fact, happening    Please note the following facts::

CENTRAL:
* The NB Ventura to Chicago capacity's extrinsic value has increased signficantly both in total dollars and in $/MMBtu.  This may need review.  
* Note that, although the ANR & NGPL capacities to Consumers have decreased in total dollar extrinsic value, the $/MMBtu value is very high.  This may need review.
* The new capacity--NGPL Midcon to Chicago has an extremely high $/MMBtu value--$.2227/MMBtu.  This may need review.

WEST:
* The West added two new deals--the extrinsic value is so minimal there is no impact here.
* There were 3 capacity deals that, in December, had no extrinsic value--they have all increased in value but they appear to be properly valued now.
* The PGT capacity was sold, obviously showing no extrinsic value any longer.
* The EPNG Perm to Valero capacity decreased in value, both in total extrinsic dollars and $/MMBtu.

EAST:
* All capacity from Rayne to Leach decreased in total extrinsic dollar value, but the $/MMBtu increased on all except the longest term Rayne to Leach deal.
* All capacity from Onshore to Rayne increased in total dollar value, both in total and $/MMBtu.
       The net impact of these two changes was a net increase of approximately $267,000, but $/MMBtu mostly saw net increases.  
* A new transaction on Tennessee accounted for the other $266,000 in extrinsic dollar value increase.
Here is your attachment:          

If you have any questions, please advise.