Dan, et al
I guess I'm one of those in "management" that needs more reasons/clarifications...but...given the reference to "no recourse against TW" go ahead and let this specific transaction flow thru income. Case closed.

Separately Dan,
It's been stated below that we expect TW UAF to "disappear" starting in August. By magic?
Generally, I'm not comfortable that we have a handle on gains or losses TW <-there seems to be some control issues here->, and as a result I am not comfortable that we have realizable income. Its likely just a matter of educating yours truly, so, separately set up a meeting w me to lead me thru the flow before we start to bring this reserve into income.


 -----Original Message-----
From: 	Fancler, Dan  
Sent:	Friday, August 31, 2001 11:23 AM
To:	Saunders, James; Geaccone, Tracy
Cc:	Walton, Mark; Harris, Steven
Subject:	RE:  0701 UAF Gain

When was it recovered?  In July 2001.

As Cash?	All available gas on the system is sold and converted into cash, UAF gains increase the available gas on the system.  Or it is used for some other system balancing purpose.  (i.e. imbalance, line pack).

What is the period of time imbalances can be disputed?  TWs imbalances are on OBAs which are not governed by the six month GISB standard but the OBA contract terms.  TW is always at risk for measurement adjustments.  TW is also at risk for customers who dispute the valuation of their OBA contracts.  TW and El Paso agreed to a measurement adjustment last year going back 3-5 years which caused a $5 million gain.

Why is this gain deemed real while the others have not?  I have provided two reasons to management not to reserve the July gain.  First, field reports indicate that in the first 10 days of July a receipt value was leaking unmeter gas into TWs system and that leak has no recourse against TW.  Second, TW already has a $4.3 million reserve for undefined measurement adjustments.  



 -----Original Message-----
From: 	Saunders, James  
Sent:	Thursday, August 30, 2001 8:00 AM
To:	Fancler, Dan; Geaccone, Tracy
Cc:	Walton, Mark; Harris, Steven
Subject:	RE:  0701 UAF Gain

When was it recovered?  As cash?
Is there not a period of time this can be "disputed"?  (I thought there was a six month period under Order 581)
Given the significant UAF on TW, why is this gain deemed real, while the others have not?


 -----Original Message-----
From: 	Fancler, Dan  
Sent:	Thursday, August 30, 2001 7:49 AM
To:	Saunders, James; Geaccone, Tracy
Cc:	Walton, Mark; Harris, Steven; Doll, Jeanette; Goradia, Pallavi; Moore, Jan
Subject:	RE:  0701 UAF Gain

The UAF is at a gain so it has already been recovered.  TW was reserving against the possibility of an undefined future measurement adjustment from a shipper which would lower the previously recovered UAF gain.

 -----Original Message-----
From: 	Saunders, James  
Sent:	Wednesday, August 29, 2001 4:49 PM
To:	Geaccone, Tracy; Fancler, Dan
Cc:	Walton, Mark; Harris, Steven; Doll, Jeanette; Goradia, Pallavi; Moore, Jan
Subject:	RE:  0701 UAF Gain

How will the 258m be recovered?

 -----Original Message-----
From: 	Geaccone, Tracy  
Sent:	Wednesday, August 29, 2001 4:16 PM
To:	Fancler, Dan; Saunders, James
Cc:	Walton, Mark; Harris, Steven; Doll, Jeanette; Goradia, Pallavi; Moore, Jan
Subject:	RE:  0701 UAF Gain

We do not want to reserve for this.  Please let it flow through income.

Thanks

Tracy

 -----Original Message-----
From: 	Fancler, Dan  
Sent:	Wednesday, August 29, 2001 4:11 PM
To:	Geaccone, Tracy; Saunders, James
Cc:	Walton, Mark
Subject:	 0701 UAF Gain

In July 2001 TW had a UAF gain of 93,400 dt valued at $258,718.00 which will be recorded in August business.

As expected the UAF gain was reduced after the July 10 repair to the receipt value at the Williams interconnect.  In my opinion a reserve of the $258,718 July gain is not necessary since we currently have $4.3 million already set up and the lack of recourse available to Williams.  Please indicate managements wishes.

Dan

 

 -----Original Message-----
From: 	Fancler, Dan  
Sent:	Wednesday, July 25, 2001 2:44 PM
To:	Saunders, James; Geaccone, Tracy
Cc:	Moseley, Debbie
Subject:	FW: 0601 UAF Gain

Debbie and I have just returned from the NNG/TW UAF meeting.  On TW, a leakey receipt value was repaired on July 10, 2001 at an interconnect with Williams Field Services.  This caused unmetered gas receipts to flow into TW and there does not appear to be any way to estimated Williams losses.  Starting in August we expect the UAF gains to disappear from TW.  If so, we recommend reversal of the UAF reserves at a time management feels appropriate.   

Until then, TW has another $1 million of UAF gains which we wish to reserve.'

Dan   

 -----Original Message-----
From: 	Moseley, Debbie  
Sent:	Wednesday, July 25, 2001 7:57 AM
To:	Fancler, Dan
Subject:	0601 UAF Gain

The UAF for 0601 has been reconiled and the accounting gain is 316,474 priced at $3.20.  The impact of the gain is $1,012,717.  This amount should be reserved.  

Let me know if you have questions.

Debbie