This morning I called Union to inquire about an imbalance statement for April 2002 primarily because the statement that I received for April 2002 was missing the park and loan balances for contract HUB210E14, HUB210E28 and HUB210E29, totaling roughtly 1,461,431 mmbuts due Union.  In turn, I was referred to their Legal Dept. and spoke with Larry Fedchun (519-436-4690).  He informed me that because ENA owedUnion way in excess of the value of this gas, they have decided to net this gas due them against everything that they owed ENA.  I asked how they valued this gas and he said they went through several pricing models and scenarios yielding anywhere from $13MM to $16MM and finally settled upon somewhere around $13MM as the value of the gas due them on a volume of 2,528,557 mmtus (per the Mar. 2002 statement that showed the outstanding volumes).  We are currently showing this gas in our system as gas owed to Union and we are carrying it at a $0.00 value because it was classified as synthetic storage.  Please let me know your thoughts on this and how we need to proceed.  If you need copies of any statements, please let me know.


Thanks,
Rita