I think we ought to discuss the Order with Columbia Gulf.  Its possible we are ok.  The problem FERC seems to have is that under the negotiated contract it is impossible for anyone but Columbia and the Shipper to know what the rate is at the time of the transaction.  Columbia's deal contains a default rate (based on index differentials) applicable if the parties are unable to agree on a basis price used to determine the "Negotiated Daily Reservation Charge".   To avoid the application of the default rate, the "Negotiated Daily Reservation Charge" requires Columbia and the shipper to negotiate, and agree,  to a basis number on a daily basis.  The parties did not specify particular index's for the purpose of calculating basis.  Thus, under Columbia's deal only the default rate can be determined at the time of the transaction.  In contrast, Transwestern's deals appear to be similar to Columbia's default rate; i.e., a rate based upon index's where the index's are agreed upon and stated upfront.  Thanks.  Greg   

 -----Original Message-----
From: 	Miller, Mary Kay  
Sent:	Friday, October 26, 2001 3:35 PM
To:	Harris, Steven; Watson, Kimberly; Lokey, Teb; Neubauer, Dave; Miller, Kent; Fossum, Drew; Pavlou, Maria; Kirk, Steve; Porter, Gregory J.; Hartsoe, Joe; Kilmer III, Robert; Williams, Jo
Subject:	Columbia Gulf order on negotiated rates

I received a copy of an order issued by the FERc on Columbia negotiated rate transaction, which includes a formula ie indexed rate.  They accepted the negotiated rate deal but they are requiring  them to file in their tariff within ONE DAY after the rate has been determined the contract and actual rate. ( Each time the actual rate changes during the term)   Just think about this for the upcoming TW_ USGT deal and NNG"- Reliant deals.    Notwithstanding the time to actually make the filing, the cost to serve it each day if the negotiated rate is different by day and then the service when an order is issued each day---  I believe this is FERC's way to attempt to eliminate negotiated rate indexed based deals-  they are punishing themselves as well, as each filing will require a notice etc-  so every day they could need to issue an order.   

I feel we need to discuss with Columbia, INGAA and join in filing for rehearing on this administrative nightmare.  An alternative would be to require you to post on Internet website the day of the transaction the actual rate, so similarly situated customers would have access to the actual rate.  I'm sending you guys a copy of the order.