Attached you will find the latest draft of the proposal executive summary.  Bob Hill

-----Original Message-----
From: Bruce Scott [mailto:BScott@wei.org]
Sent: Thursday, December 06, 2001 6:59 PM
To: 'skschroeder@duke-energy.com'; 'bdreese@duke-energy.com';
'byron.wright@elpaso.com'; 'jay.holm@elpaso.com';
'james.flynn@elpaso.com'; Gadd, Eric; Hill, Robert; Reinecke, Bryan;
'marty.heeg@foothillspipe.com'; 'andrew.ilnycky@foothillspipe.com';
'rob.cohen@foothillspipe.com'; 'dpentzien@nisource.com';
'peter.lund@neg.pge.com'; 'dave.vandriel@neg.pge.com';
'lauri.newton@neg.pge.com'; 'wpurcell@sempra-intl.com';
'spatrick@sempra.com'; 'tony_palmer@transcanada.com';
'donna_friesen@transcanada.com'; 'cavan.c.carlton@williams.com';
'jim.c.moore@williams.com'; 'peter.c.thomas@williams.com'; Murray Birch;
Bob Bissett; John Taylor
Subject: ANGTS Commercial Proposal - STRICTLY CONFIDENTIAL


At yesterday's meeting of the ANGTS Commercial Team, it was agreed that
Dave, Cavan and I would continue to work together to modify the commercial
proposal's executive summary over the next two weeks so it can be sent to
the ANS producers on the Friday just before Xmas.  In advance of next week's
meeting in LA, we will incorporate comments made yesterday (some of which
are listed below) as well as any points conveyed to us by the close of
business tomorrow.  Attached is the exact same version of the document
discussed yesterday (in case you did not receive the soft copy the previous
evening).  Please feel free to provide your comments by e-mail.
 <<ANGTS_Proposal_Dec6.doc>> 

*	ANS producers want a pipeline capable of transporting 4.0 to 5.5
bcf/d; 4.0 to 4.5 bcf/d initial volume at Prudhoe Bay.
*	Provide a basket of pipeline design options; namely, a 42-inch,
2,050 psig line capable of transporting 2.5 to 5.3 bcf/d (loop sections
being necessary to achieve volumes above 4.0 bcf/d) and a 48-inch, 2,050
psig line capable of transporting 3.1 to 5.3 bcf/d; also provide the lowest
per unit cost means of transporting gas to market.
*	Indicate how fuel consumption will impact the optimum pipe platform,
assuming a fuel cost of US$0.75/MMBtu.
*	Provide a range of traditional cost-of-service tolls that includes
historic costs (US$385 mm total) and provides for 14% ROE; consider
including capital cost per decatherm of throughput capacity; tolls will not
be a binding offer.
*	Emphasize that the ANGTS "B-to-C" strategy is consistent with NPA
and ANGTA.
*	Describe each "asset" (certificates, permits, legislation, etc.)
underpinning the ANGTS timing advantage; reduces risk and increases
certainty.
*	Provide an estimate of the value of the ANGTS timing advantage.
*	Address specific strategies for dealing with each contingent
liability on the theory that used and useful capital will be credited at
start up.
*	Express a willingness to discuss producer equity participation and
risk sharing.

Bruce Scott
Office:  403-699-1415
Cell:  403-862-0706