Dan, 

Thanks for looking at this for me.  I did remove the phrase you mention in number 1 below.  As for a volume cap, I don't think that one is necessary in this case.  Their TW contract limits them to 1000 MMBtu/day.  Any prices that are fixed will not include TW transport charges.

Thanks again,

Kim

ps, once their board approves this term sheet, we will need to do a confirmation.  Will this be generated by you or when the deal is entered into the system?




Dan J Hyvl
04/02/2001 08:55 AM
To:	Kim Ward/HOU/ECT@ECT
cc:	 
Subject:	Re: Eastern New Mexico Gas Company   

Kim,
	I have reviewed your term sheet and have the following questions.  
1.  Under Term, you have included the phrase "with annual redetermination" however I find no redetermination language in the Price  section.  I would suggest that the phrase be deleted.
2.  Under Quantity, you indicate there expected volumes, however, we need to put some cap on the maximum, With a 5 year term, we should offer some maximum such as 200% of the expected volumes.  Any thoughts relating to a cap?
3.  Under Price you indicate that the price could be changed to a Fixed Price, I assume that you do not intend to include the Transwestern transportation charges as a part of the Fixed Price.  Is this correct?  and if so, does the Fixed Price language need to be qualified?  
	Otherwise, the term sheet appears okay.  
						Dan



	Kim Ward 03/29/2001 03:52 PM 	   To: Dan Hyvl  cc:   Subject: Eastern New Mexico Gas Company	


Dan,

Attached is a term sheet that has been sent to Eastern New Mexico gas company to extend a four year deal that ends on April 30, 2001.  Could you look into the confirmation for this transaction?  They will be going to the board for approval at the end of next week so you have some time.  Sorry to bombard you!!  This one should be easy.

Thanks,

Kim

 






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