Application of the fuel retained from transportation and treating contracts 
doesn't have to be done by zone or compressor, in fact I am sure there will 
be times when we are either short or long compressor fuel when compared to 
the pipelines total usage.  Usually, short.  I just do not think the market 
will let me lay off ALL of this risk.  It would be really nice if we could 
get the system to track compressor fuel used to service specific contracts 
but I am afraid it will always be a facility planning issue.  Fuel should not 
cause imbalances on the transportation contract.  A pipeline could be long 
fuel due to not running compression and in that case we would have to inject 
or hold in linepack the excess.  It seems that we would look at fuel on a 
total basis.




Michael Eiben
06/22/2000 01:09 PM
To: Brenda F Herod/HOU/ECT@ECT
cc: Lisa Csikos/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Mary M 
Smith/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Pat 
Clynes/Corp/Enron@ENRON, Edward D Gottlob/HOU/ECT@ECT 
Subject: Re: Fuel  

We need to discuss further.  My concern would be that how do we know what % 
HPL should be retaining at a compressor or zone to make sure we recoup our 
fuel cost ?  Also, could allocated fuel cause a contract imbalance?  I think 
that Pipeline Operations can handle the scheduling of third party fuel 
retainage.  But, if we retain fuel on ENA transports, then we need to come up 
with a plan to nominate this in Marketing Operations to Houston Pipeline.  
Currently, this process is not in place.


   
	Enron North America Corp.
	
	From:  Brenda F Herod                           06/22/2000 12:35 PM
	

To: Lisa Csikos/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Mary M 
Smith/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Pat 
Clynes/Corp/Enron@ENRON, Michael Eiben/HOU/ECT@ECT
cc: Edward D Gottlob/HOU/ECT@ECT 
Subject: Re: Fuel  

What is the answer?  Can the systems and processes handle this?  Please let 
me know ASAP.  Thanks.



Edward D Gottlob
06/22/2000 10:57 AM
To: bherod@enron.com
cc:  
Subject: Fuel

Brenda,

As you know fuel is a big risk.  One of the things we are trying to do is get 
the shipper to pay fuel.  This would mean we would purchase, transport and 
possibly sell gas with a fuel percentage as part of the price.  Can the 
downstream systems, scheduling etc handle this?