----- Forwarded by Rick Suderman/Bakersfield/Eott on 01/26/01 07:21 AM
-----

                    Diane Corbett
                                         To:     Larry 
Garrett/Long_Beach/Eott@Eott,
                    01/17/01             Bob Jacobs/Long_Beach/Eott@Eott, Rick
                    05:39 PM             Suderman/Bakersfield/Eott@Eott
                                         cc:
                                         Subject:     Historic Butane/Propane 
Value as
                                         Gas




Larry -  thanks for 1999 and 2000 Conway and Belvieu prices. Attached is
the rest of the story. Compares those historic prices with equivalent value
of liquids as gas based on historic gas (Calif Socal Border) prices.  As we
suspected, values are negative (i.e. less value as gas) up until recently
and then the numbers turn very positive. i.e. Needles blending project does
not work on historic liquids/gas prices but certainly works now. Therefore,
back to the question of what is price forecast or spreads we can lock into.
I have been given a contact on the Enron gas desk that maybe able to help.


(See attached file: OPISPROBUTAVG.xls)

 - OPISPROBUTAVG.xls