I don't think having an intrastate in the ETS family would be a problem.  We 
could even run it with a merchant business if we firewalled the merchant 
entity off from the ETS pipelines.  Keep me in the loop and get MKM's group 
in at the appropriate time (far enough in advance of us submitting a bid that 
they can opine on the valuation).  Thanks. df




Lee Huber
01/16/2001 04:17 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:  

Subject: PowerTex Pipeline

Any thoughts on the intrastate pipeline aspect??
---------------------- Forwarded by Lee Huber/ET&S/Enron on 01/16/2001 04:17 
PM ---------------------------
   
	
	
	From:  John Goodpasture                           01/16/2001 04:14 PM
	

To: Stephen Herber/ET&S/Enron@ENRON, Michael Ratner/OTS/Enron@Enron, Yuan 
Tian/ET&S/Enron@ENRON, Lee Huber/ET&S/Enron@ENRON, Kim Wilkie/ET&S/Enron@ENRON
cc:  

Subject: PowerTex Pipeline

Here is a transmittal from Conoco on the PowerTex deal.  They suggest we 
schedule our data room visit for Friday Jan 26.  Please let me know if THIS 
DATE WORKS FOR YOU?  Seems like one day in the data room should be sufficient 
given that our interest is limited to only the PowerTex system. 

Before going to the data room, there are several issues we ought to think 
through.  Here are some of them, ... you can probably add others.

Assuming we leave it standalone, PowerTex would be the only intrastate 
pipeline in the ETS family ... is that a problem? 
ETS can not buy/sell gas, so can the PowerTex business be structured as 
transport only (or do we need to bring in a marketer or other player?)
What are the growth opportunities (access to new customers, inexpensive 
increases in capacity, etc.)
What are major risks going forward (losing customers to competition, contract 
expiration, reduced contractual transport rates, etc.)
Any environmental/litigation exposure
Structure of transaction (taxes, liabilities, indemnifications, etc.)   
Others?

Steve is now in Omaha, but when he returns let's get together as a group.

JNG
---------------------- Forwarded by John Goodpasture/OTS/Enron on 01/16/2001 
03:30 PM ---------------------------


"Reeske, Jeff B." <Jeff.B.Reeske@usa.conoco.com> on 01/16/2001 02:37:52 PM
To: "'john.goodpasture@enron.com'" <john.goodpasture@enron.com>
cc:  

Subject: Guidelines and Final Bid Criteria


 <<Enron - Final Bid Criteria Letter.doc>>

John, you'll be receiving the original by fed ex tomorrow.

 - Enron - Final Bid Criteria Letter.doc