FYI, Kim.

 -----Original Message-----
From: 	Chanley, Earl  
Sent:	Wednesday, February 06, 2002 5:58 PM
To:	Watson, Kimberly
Subject:	RE: Questar San Juan Hub Interconnect

Kim

The in-service date of May 1, will be very difficult to attain. Since the bankruptcy filing, vendors have been very reluctant to ship material prior to it being prepaid (Daniels, Fisher, Rosemont, other). These are the vendors of instrumentation required for the interconnect. Questar may be able to purchase material, but some of the items can have up to a 60 day delivery. (From time PA approved and funded to in-service will be 75 days at most. We have worked with Daniels on a chromatograph on another project and prepayment has taken 45 days alone. Daniels is not set up for prepayments as they bill off an invoice and the main office and accounting had to create an invoice for a chromatograph that had not been delivered. Not the usual mode of operations. 
The I/C design is for a UltraSonic meter and this is dependent on their testing schedule ( Canada or Kansas are the only two places to test to 100% of design). Will confirm testing schedule and delivery dates with UltraSonic ASAP. 
We will try to complete the I/C with the earliest in-service date possible, but with conditions as they are, a realistic date would be June 15, 2002. 
If you have questions or issues, please let me know.


Thanks
Earl Chanley
505-625-8031




 -----Original Message-----
From: 	Watson, Kimberly  
Sent:	Wednesday, February 06, 2002 9:27 AM
To:	Chanley, Earl
Cc:	Abdmoulaie, Mansoor
Subject:	RE: Questar San Juan Hub Interconnect

Earl,

We are looking at putting the metering facilities on their ROW (also, I think we will have to purchase about 50ft of ROW from ElPaso to get to Questar's property).  As you look at this, if for some reason we cannot obtain ElPaso ROW, we will have to look at Plan B which would be to put the metering on our ROW.  Our in-service date is May 1.  If you think that May 1 may be difficult due to receiving the parts/materials on a timely basis because of the issues that vendors may have with us because of recent Enron events, please let me know.  Questar has already informed us that they would help obtain parts/materials to our specifications if it helps achieve an in-service date of May 1.

Thanks, Kim.

 -----Original Message-----
From: 	Chanley, Earl  
Sent:	Wednesday, February 06, 2002 9:02 AM
To:	Watson, Kimberly
Subject:	RE: Questar San Juan Hub Interconnect

Kim

Has a location, Theirs or TW land/ROW, been settled and when is the required in-service date?

Thanks
Earl Chanley
505-625-8031




 -----Original Message-----
From: 	Watson, Kimberly  
Sent:	Tuesday, February 05, 2002 3:40 PM
To:	Lokey, Teb; Geaccone, Tracy; Abdmoulaie, Mansoor; Chanley, Earl; Roensch, David; Whippo, Jeff; Schoolcraft, Darrell; Guthrie, Robert
Cc:	Rapp, Bill
Subject:	Questar San Juan Hub Interconnect

All,

Please see the attached Interconnect Agreement with Questar.  I wanted you all to have a look at what we believe is the final draft.  It is a fairly standard, fully reimbursable interconnect with Questar.  Transwestern will own and operate the interconnect.  You will notice that Questar has requested a "Payment Plan" that details when they will pay Transwestern for the interconnect due to the recent Enron events.  If anyone has any questions or concerns about the timing of these payments, please give me a call.  Also, you will notice this interconnect may not be subject to the CIAC tax gross up, but to protect ourselves, we have added language in Para 3.2 that protects us financially if the IRS ever comes back to determine that this interconnect is subject to the CIAC tax.   Robert Guthrie with the tax department has worked with us to develop this language.  

We hope to execute this Agreement this week.  If you have any comments, please let me know.  After execution, we will forward a final copy to you for your files.

Thanks, 
Kim    713-853-3098

 << File: Questar So Trails Hub Interconnect 02-05-02.doc >>