Looks good--I'm faxing some minor comments.  Give George my best!  DF




Jeffery Fawcett
11/21/2000 01:17 PM
To: Drew Fossum/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Kevin 
Hyatt/ET&S/Enron@Enron
cc: Susan Scott/ET&S/Enron@ENRON, Keith Petersen/ET&S/Enron@ENRON, Ronald 
Matthews/ET&S/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, James 
Centilli/ET&S/Enron@ENRON 

Subject: Proposal to Caithness Big Sandy

Attached for your review and comment is a broad outline of a rate proposal to 
Caithness for the construction and operation of the 40-mile lateral to the 
Big Sandy project.  This non-binding proposal was requested by Caithness' 
consultant, George Briden, as a starting point for modeling the economics of 
the project's gas supply and a basis for further discussions aimed at 
designing an appropriate deal structure.  For your information, James 
Centilli calculated the transport rate based on the (+/- 30%) $20.33MM cost 
estimate with a ten-year (contract) amortization.  

I plan to put this in the mail by the close of business tomorrow.  If you 
have any suggestions, please let me hear from you by mid-day.   Thanks.