John, I am pleased to report that West Gas Orig has completed the permanent assignment of approx 47,000 MMBtu/day of El Paso Transport to Public Service of New Mexico. This capacity was assigned with varying start dates. late 02 and early 03, with no credit risk associated with this transaction as a condition of the assignment was an unconditional release of ENA.  ENA assigned this capacity at max rate ( which meets all FERC policy issues)and we were able to generate $3.0 MM of incremental value which was granted to Stephanie Miller from Mike Grigsby.  

In addition to the MTM of approx $ 3MM, this transaction reinforces the good working relationship between trading and marketing and may enhance ENA's trading position by removing some of the risks associated with this pipe. These risks include, flow rate risk, demand charge tariff changes, receipt point pool allocation risks, and potential MTM erosion and of course FERC/regulatory pressures.

Our work is nowhere near complete on this as we continue to create structures and discussion around the 200,000/day which is a little more complicated to shed. In the meantime our group continues to promote the placement of the remaining capacity either through other producers or generators and we anticipate the assignment of another  small package early next week. 

Thanks to those who helped out in this effort, including legal, regulatory, risk, structuring, trading and my origination team !!!    

regards, BT