an indications is $4.53 for physical.  Let me know if you need anything else.  Basis is up today due to heat and the stage emergencies yesterday.  Still waiting on Patti - she is busy because people are out.  Will keep you posted.


 -----Original Message-----
From: 	Foster, Chris H.  
Sent:	Tuesday, July 03, 2001 9:09 AM
To:	Ward, Kim S (Houston)
Cc:	Fuller, Dave; Tycholiz, Barry
Subject:	FW: New Gas Deal

Kim:

Here is a summary of the structure we are using to buy gas from the gas desk for Harbor.  This is basically what I plan on using for any future tolling deals that come up.  We can always enhance the structure by replacing the Gas Daily with a fixed price or NGI border price.  

Also, can you get me an indicative 5 year offer for PG&E Citygate out of August for 10,000 MMBtu/d?

Thanks!

C

 -----Original Message-----
From: 	Foster, Chris H.  
Sent:	Monday, July 02, 2001 3:27 PM
To:	Scott Hawley (E-mail)
Cc:	Brian Ferguson (E-mail)
Subject:	New Gas Deal

Attached is a summary of the new gas deal.  Essentially, we will sell selling Gas Daily mid plus $.10 on a variable basis will a cash out on imbalances each month.  This will become effective on June 1 and on a month to month thereafter.  I have added a clause that indicates that EPMI will be assured we will collect our gas costs each month.  Please let me know if these terms do not represent your understanding.

C

 << File: new gas deal.doc >>