What do you think?


---------------------- Forwarded by Julie Meyers/HOU/ECT on 04/17/2001 10:16 AM ---------------------------


Joanie H Ngo
04/16/2001 10:07 AM
To:	Julie Meyers/HOU/ECT@ECT
cc:	Katherine Herrera/Corp/Enron@ENRON 
Subject:	Re: GLO/EGM Gas/Crude Swap

Julie,

Deal 640685 for March 01 production:  per Daren Farmer (in the Audit field in Sitara), this was copied from deal #547201.  This deal is the Crude Swap where volume stayed but price got zeroed out and booked as a demand charge under 679847 and 679848.

Please confirm that it is the Crude Swap and rebook as necessary.

If you have any questions or need additional clarification, please let me or Katherine H. know.

Thanks in advance for your help on this matter.

Joanie
x36574
---------------------- Forwarded by Joanie H Ngo/HOU/ECT on 04/16/2001 09:52 AM ---------------------------


Julie Meyers
03/19/2001 05:33 PM
To:	Katherine Herrera/Corp/Enron@ENRON
cc:	Joanie H Ngo/HOU/ECT@ECT, George Weissman/HOU/ECT@ECT, Bryce Baxter/HOU/ECT@ECT, Donnie Myers/NA/Enron@ENRON, Kam Keiser/HOU/ECT@ECT, Elizabeth L Hernandez/HOU/ECT@ECT 
Subject:	Re: GLO/EGM Gas/Crude Swap   


547201 & 591307 has been zeroed out.  679847 & 679848 have been created between ENA & HPLC.  679859 has been created for the sale to EGM from ENA Wellhead.  I have placed both January and February on that deal.

If this will not work, please let me know.

Thanks!!

Julie




Katherine Herrera@ENRON
03/06/2001 03:36 PM
To:	Julie Meyers/HOU/ECT@ECT
cc:	 
Subject:	GLO/EGM Gas/Crude Swap

FYI-

Will the price be reversed on HPLC sale for Jan01 and Feb 01 prod?
Thanks- katherine
---------------------- Forwarded by Katherine Herrera/Corp/Enron on 03/06/2001 03:24 PM ---------------------------
   
	Enron North America Corp.  From:  Bryce Baxter @ ECT                           03/05/2001 06:33 PM	
		


To:	George Weissman/HOU/ECT@ECT
cc:	Donnie Myers/NA/Enron@ENRON, Katherine Herrera/Corp/Enron@ENRON, David Baumbach/HOU/ECT@ECT 

Subject:	GLO/EGM Gas/Crude Swap

George - I've done some T-accounts (the bean counter in me) and I think the following is the best way to handle this going forward:
	
Change the existing deals, 547201 and 591307, to a zero price.  This will eliminate the A/R balance on HPL's books for GLO, but will keep the volume nom'd to GLO and will not impact UA4.
Enter a ticket on HPL for a sale to ENA for the value of the gas that was zeroed out on the above tickets.  This should be entered as a demand charge only and the amounts should be $974,144 for 1/01 and $766,304 for 2/01.
Enter a ticket on ENA where the ENA-Wellhead Book purchases the demand from HPL.  The amounts would be the same as in #2 above.
Enter a ticket on ENA where the ENA-Wellhead Book sells demand to EGM for the value of the crude oil for the prior month.  For 1/01, the sale would be for $886,638.60 (the 12/00 Crude Oil delivered to EGM by GLO).  For 2/01, the sale would be for $839,008.29 (the 1/01 Crude Oil delivered to EGM by GLO).

This will require the following steps be taken monthly as this deal goes forward:
The price on the sale from HPL to GLO will need to be zeroed out monthly.
The demand charges on steps 2 and 3 will have to be updated to reflect the value zeroed out.
The demand charges on step 4 will have to be updated to reflect the value of the crude delivered to EGM.

Once this is done, the A/R balance for GLO will be cleared, the margin will be on the ENA Wellhead book, and the intercompany transactions will move the money from EGM to HPL.  This needs to be done monthly prior to flash, which will prevent any OA variances.  The index for the gas value is available shortly after the 1st of the month, and since the volume is firm, there shouldn't be a problem calculating the value.  We should also know the value of the crude oil so that we can flash the sale from ENA to EGM.  If you have any questions or see a better way to do this, please let me know.  Thanks.











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