Spoke with Joe Parks this p.m.  Bridgeline will require gas retention to cover December and January storage and transport fees (approx. $1.32 million).  Assuming a $2.35 fixed price for the gas, we should be able to liquidate a little better than 1 Bcf.  It will take (at most) 9 days to withdrawal given our firm withdrawal rights of 150,000 MMBtu/d.  The storage contract has interruptible withdrawal rights above this, but any withdrawals above 150,000 MMBtu will be on a best efforts basis.

Our highest net back will probably be Henry Hub; however, ENA's Transport Agreement only allows 55,000 firm delivery rights to HH...everything else will be on a secondary basis, which carries a lower priority of service in the event the pipeline restricts flows to HH.   Joe mentioned that Bridgeline may be willing to purchase the gas in ground.  Once we get the go ahead to sell, it will be a matter of  determining the best price to ENA.  The transport and storage does not appear to carry any incremental charges to move it across the Bridgeline system, since we will be reserving gas for January transport fees.  Therefore, we will look to the highest offer on the system.

Joe reminded me of a Bridgeline issue you addressed in an earlier e-mail which stated "he wants ENA to execute a document which makes it clear that by releasing the gas, Bridgeline is not waiving any rights that it might have to a warehouseman's lien on the gas in storage.  He is having their lawyer send a draft of this document to Gerald."  

Questions:
1. Do you know where Gerald sits in relation to this matter?
2. Do we have to go to the BMC / Cash Committee, etc...to transact?

Let me know.

cmm