We should have included the ACA, GRI, and Great Plains in our sales price to 
Midcoast.  You should still use the $.0792 in your calculation.  Just a note, 
we could have shipped this gas to a zone 4 market, resulting in a much higher 
transport cost, OR we could have sold the gas at the wellhead, giving us a $0 
transport cost.  Most of the time you will use the IT feeder cost ($.0792 in 
this case) regardless of what we do with the gas.

By the way, Transco's rates changed just a bit effective 2/1/2001.  The IT 
feeder for Zone 3 goes from $.0792 to $.0769 effective 2/1/2001, fuel remains 
unchanged at .45%.





Tricia Spence
02/21/2001 10:07 AM
To: Chris Germany/HOU/ECT@ECT
cc:  
Subject: Hey Buddy - Transco question for you

First, let me start by saying I miss seeing your happy face every day!! Now, 
that being said, I have a question!!!

Juniper Energy is one of the producers we are marketing consultants for.  I 
have the pleasure of preparing their invoices for them every months on the 
EI57 meter that is nominated on Transco, Zn3WH (ticket 547342).

The agreed upon purchase price from Enron is Transco Sta 65 less transport 
and fuel.  In the past months, we have nominated this gas on one of our IT 
contracts and the transport fee reflects the max IT rate of .0792 plus .45% 
fuel.  That is what I subtract as a fee from the Gas Daily price to reflect 
what Enron owes Juniper for purchasing the gas...

In January, from the 13th - 16th, we nominated 2009/day from EI57 and 
transported it on IT contract .2774 for delivery to Midcoast Marketing, Inc. 
(ticket 568318) @ Z3-Ethel Midla meter 6083.
This path incurred a higher fee than the other two paths that were nominated 
either to our pool or to Mamou.  

The Ethel Midla delivery fees included:
ACA .0022
EP3 .0013 
GP .0097 (great plains surcharge ??)
GRI .0070
VC .0448 
ZN3 .0331
total .0981

The pool and Mamou delivery fees only included:
EP3 .0013
VC .0448
ZN3 .0331
total .0792

My question is....are any of the Ethel Midla fees passed on to the delivery 
counterparty, Midcoast Marketing, Inc. ? 
Or, is Juniper responsible for paying for the extra fees?

Thanks for your help 

Trish