-----Original Message-----
From: Brian Stone [mailto:htebs@huber.com]
Sent: Thursday, October 04, 2001 12:50 PM
To: Whitt, Mark
Subject: San Juan Proposal


Mark,
Help me out here!
I took our current marketing arrangements, selling into the spot
market, assuming the worst at EPNG-SJ Index - $0.10, and compared it to
the pricing under the three tranches.  I realize we are mixing IF and
GDA, but IF can be swapped for GDA and vice-versa in the swing swap
market.  My dilemma is that the firm transportation does not appear to
be accretive, in fact it results in $0.05 / mmbtu  less than current
arrangement (accross the total volume).  What is really killing it is
the NW basis and discount...am I using the right one?  (FYI, I used
ENA's mid-market basis for the 12-month strip going forward).  What am I
missing here?