Just a few comments on the new letter to Bridgeline:

In Paragraph 2, "reasonable efforts" can often lead to additional disputes when actually administrating the gas deal, such as price arbitrage between Bridgeline's price and the spot gas market prices.  Could we add some flexibility to sell that inventory in-place to a third party so that additional fuel and injection fees will not be deducted from the third party's bid?  Bridgeline waiver to other transport claims could be a problem unless Bridgeline just agrees to cash-out the transport imbalances at the NYMEX - $0.05 price, otherwise they will want us to transport at least the 6,212 Dth of interruptible transport imbalance gas to a delivery point.  How about using the following:

	...ENA will attempt to remove its gas from Bridgeline storage or arrange for an in-ground transfer of the storage inventory during the month of July....Bridgeline agrees to purchase residual gas and cash-out ENA's firm and interruptible transportation imbalances in accordance....

Also in Paragraph 3, instead of confirmation numbers the numbers are actually contract numbers (i.e. used three times).

Call me if there are any questions,
Ruth Concannon
713-853-1667


-----Original Message-----
From: Schneider, Chip 
Sent: Thursday, June 13, 2002 10:28 AM
To: Bartlett, Jeff; Concannon, Ruth; Gray, Barbara N.; Jayne South
(E-mail); Mark Ellenberg (E-mail); McMichael Jr., Ed; Michael Koss
(E-mail); Rich Shinder (E-mail); Sharp, Greg; Stephen Youngman (E-mail)
Subject: New Letter to Bridgeline


Attached is a new proposal to Bridgeline unbundling commodity and transportation and providing for a full month of transport reservation charges rather than a unit rate of $0.075/MMBtu.  We have also offered commodity to Brdigeline at five cents under NYMEX for July.  This new proposal is reflective of a conversation with Hugh Connett on Monday 6/11.  We are resisting Bridgeline's claim to an additional month of storage due to the fact that had gas been released in January 2002, ENA would not have needed an additional month of storage for its gas.

Please provide comments ASAP--would like to send this today.