Cheryl,

It is my understanding that HPL made a decision in 1998, for commericial 
reasons, to adopt the GISB Gas Day that all interstate pipelines are required 
to observe.  See definition below.  I know that the transportation contract 
have been revised to reflect the 9:00 am Central Clock Time convention.  As 
to the termination letter issue raised in your letter, I'm assuming that you 
are working that out with Shawna Flynn.

Steve Van Hooser

Gas Industry Standards Board Business Practice Standards 
Standards and Models Relating To Nominations, Flowing Gas, Invoicing, 
Electronic 
Delivery Mechanisms, Capacity Release Contracts
Interpretations
Book 1 of 2
Containing Principles, Definitions, Standards and Models
Version 1.4
August 31, 1999
Standards:
1.3.1 Standard time for the gas day should be 9 a.m. to 9 a.m. (central clock 
time).




	Cheryl Dudley
	10/02/2000 03:17 PM
		 
		 To: Shawna Flynn/HOU/ECT@ECT, Sandi M Braband/HOU/ECT@ECT, Shonnie 
Daniel/HOU/ECT@ECT, Dan J Hyvl/HOU/ECT@ECT, Gerald Nemec/HOU/ECT@ECT, Steve 
Van Hooser/HOU/ECT@ECT, Melissa Graves/HOU/ECT@ECT, Donald P 
Reinhardt/HOU/ECT@ECT, Vance L Taylor/HOU/ECT@ECT
		 cc: Linda S Bryan/HOU/ECT@ECT, Amelia Alland/HOU/ECT@ECT, Jackie 
Morgan/HOU/ECT@ECT
		 Subject: Clarification of "First of the Month" Termination Date

Unless there have been recent changes of which I am unaware, a "gas day" runs 
from 8:00 a.m. on one day until 8:00 a.m. on the next day.  Based on this 
premise, I need to get a clarification of what you actually mean when you do 
a termination letter stating that a contract will be terminated on the first 
of a particular month.

As the systems currently work, if a termination date is entered as the first 
of any month, the deal is rolled over in Sitara for the ENTIRE month.

If Sitara was changed to better read the dates from Global Contracts, it 
would still roll the deal over & allow gas to flow through the 1st (which 
would actually be until 8:00 a.m. on the 2nd).

When you terminate a contract on the first of any month:

Do you mean that gas should only flow through the end of the previous month 
(which would end at 8:00 a.m. on the 1st of the next month)?

or

Do you mean that gas should flow through the end of the 1st day of the month 
(which would end at 8:00 a.m. on the 2nd of the month)?

or

Can it be either, based on the individual situation?  (If so, please explain.)

Please let me know your views on this issue.  I have requested the IT group 
to change all of the "1st of a month" termination dates in Global Contracts 
to the last day of the previous month in order to prevent Sitara from 
assuming that the deal is good for the entire next month.  But, before they 
act on this request, we want to make sure that we are interpreting the 
meaning correctly.

Thanks in advance for your help.