Good summary of Canadian process.

Once George, Bob and I meet, I will give the group and update.

thansk

bob
---------------------- Forwarded by Bob M Hall/NA/Enron on 04/02/2001 03:47 
PM ---------------------------
   
	
	
	From:  George F Smith @ ECT                           04/02/2001 02:34 PM
	

To: Robert Superty/HOU/ECT@ECT, Bob M Hall/NA/Enron@Enron
cc:  

Subject: Canadian Outsourcing Deals

I met with Peggy Hedstrom and to some extent with Laura Scott  in Calgary 
regarding how they handle the day to day activity of their producer 
outsourcing deals.


The producer provides to EC their projected production schedule for the year 
by month by plant outlet. This information is entered into Sitara by EC on a 
single ticket with no meter information. For the prompt month EC confirms 
back to the producer their expected production volumes by point by day. This 
includes any maintenance or scheduled down time that would affect their daily 
flows. This information is contained within a Excel spreadsheet which can be 
viewed by the producer via a common network drive.

The producer communicates to EC their sales for the month and on a daily 
basis. EC enters these trades in Sitara. The Sitara position by producer is 
balanced to zero daily. The producer does not have access to Sitara.

EC acts as agent for the downstream transportation owned by producer. They 
have no diversion rights on this transport, it is utilised at the direction 
of the producer. EC nominates producers transport. All transport expense 
estimates are maintained by EC. EC is invoiced and pays the pipeline.

EC monitors estimated hourly flows from the plant outlets as provided by 
Nova. It is the responsibility of EC to inform the producer of significant 
variances in their scheduled versus estimated flows. Nova requires that 
shippers be balanced on a daily basis or face penalties if variances are out 
of tolerance. It is EC's responsibility to keep the producer out of penalty 
situations. The producer, at the direction of EC, either sells or buys on an 
intraday basis to balance their position on the pipeline. Final estimated 
flows are then downloaded by EC into the Excel spreadsheet. This final 
estimate is than used as the expected volume for the upcoming day.  And 
Sitara is updated accordingly.

At months end the spreadsheet information is transferred to an accounting 
system referred to as Solomon. Actual volumes as provided by the pipeline are 
also entered into the system for settlement. I didn't have a lot of time to 
devote to the accounting process, but I doubt ENA would take this approach.

EC utilises a single point of contact with each producer from a logistics and 
origination standpoint. Peggy said they did not hire people specifically from 
the producer/customers but did seek out people with extensive producer 
experience to assist with these customers. Peggy feels that their success is 
due in a large part to the very strong relationships they have developed with 
their customers through this point of contact approach.

It is of note that Unify is not utilised in managing these customers 
business. Peggy feels that Unify is not  designed to handle it and response 
time is too slow for their purposes given the time constraints they are 
working under on a daily basis.