Dan, as per my voice-mail, I talked to Hunter and he confirmed that Enron
would notify BP/Crestar via e-mail by 9:45 MST of the contracts with
associated volumes. On the chance that Enron cannot notify BP/Crestar or
fails to take, and BP/Crestar incur penalty costs then Enron would pay for
those as per point number #2 below ie.,

[ (2) Add a clause to either the Enron agreement or the Gulf assignment
agreement to state if Enron fails to inform and/or take, then any penalty
costs/price difference incurred by Crestar/BP shall be passed onto Enron.]

Hunter agreed as long as there is a reciprocal clause that Enron is
compensated when BP/Crestar fail to nominate by the 10:30am MST Timely
cycle deadline and Enron incurs costs, then BP/Crestar would pay those
costs.

Crestar and BP both agree with the reciprocal cost provisions. Now it is a
matter of where the language should go. I think it should be in the Enron
contract.

Please advise if you agree and how we should proceed to include the
language in the Enron contract.

Thanks,
------
Bruce Kohrs
Phone: (403)205-7684
Fax: (403)266-1947
e-mail:bruce_kohrs@keyspancanada.com
----- Forwarded by Bruce Kohrs/Keyspan/ca on 04/04/2001 03:54 PM -----

                    Bruce Kohrs
                                         To:     dan.j.hyvl@enron.com, 
grant.oh@enron.com
                    04/03/2001           cc:     Brian 
Houghton/CRESTAR1/Crestar Energy@Exchange, Michael
                    03:48 PM             Kleiner/CRESTAR1/Crestar 
Energy@Exchange, Jim Pearson/Keyspan/ca@Keyspan,
                                         Gerry Kurtz/Keyspan/ca@Keyspan
                                         Subject:     Re: Crestar AOS 
assignment to BP




Grant, I think you need to get involved and explain to Patrice's people the
agreement we have in place currently. Mark does not give us the information
via e-mail on a consistent basis by 9:45am, however the agreement states
that. To date Crestar has been accomodating to Enron but once BP comes into
the AOS agreement the 9:45am deadline will need to become more formal.

Gentlemen, please advise what Enron's position is. I think Mark's last
comment on same makret veveryday would accomodate the defualt contract
number request we originally had in the agreement.

Thanks,
------
Bruce Kohrs
Phone: (403)205-7684
Fax: (403)266-1947
e-mail:bruce_kohrs@keyspancanada.com
----- Forwarded by Bruce Kohrs/Keyspan/ca on 04/03/2001 03:43 PM -----

                    Mark.L.Schrab
                    @enron.com           To:     Patrice.L.Mims@enron.com, 
Lisa.Kinsey@enron.com
                                         cc:     Bruce_kohrs@keyspancanada.com
                    04/03/2001           Subject:     Re: Crestar AOS 
assignment to BP
                    03:01 PM







Patrice:
I am unable to commit to knowing what our downstream contracts will be by
the 10:45 deadline that they have set fourth.  In the event that we sell to
a market at the point and there is a long daisy chain involved we may not
get the ultimate downstream contract until 11:15 or sometimes even
intra-day.  I will make every effort to get the downstream info. to
BP/Crestar/Gulf Canada however, I do not think we should take penalties if
our markets are slow providing us the information.

The only solution would be to take our supply to the same maket every day.

Thanks,
Mark






Patrice L Mims
04/03/2001 03:22 PM

To:   Mark L Schrab/HOU/ECT@ECT, Lisa Kinsey/HOU/ECT@ECT
cc:
Subject:  Crestar AOS assignment to BP


---------------------- Forwarded by Patrice L Mims/HOU/ECT on 04/03/2001
03:13 PM ---------------------------


"Bruce Kohrs" <Bruce_Kohrs@keyspancanada.com> on 04/03/2001 01:06:43 PM

To:   dan.j.hyvl@enron.com, <patrice.l.mims@enron.com>
cc:   hunters.shively@enron.com, grant.oh@enron.com,
      Brian_Houghton/CRESTAR1/Crestar_Energy%Exchange
      <Brian_Houghton@keyspancanada.com>,
      Michael_Kleiner/CRESTAR1/Crestar_Energy%Exchange
      <Michael_Kleiner@keyspancanada.com>, "Jim Pearson"
      <Jim_Pearson@keyspancanada.com>, williakh@bp.com
Subject:  Crestar AOS assignment to BP


Dan, Grant Oh suggested I e-mail you directly to notify you of a change
that BP needs included. BP states they need to have the volumes/contract
number information back from Enron via e-mail by 9:45am MST in order to
place nominations by 10:30am MST for the Timely Cycle. If for whatever
reason Enron cannot provide the volume/contract number information by
9:45am or Enron fails to take the scheduled volume agreed to at 9:00am; and
BP incurs any penalty costs including the price difference between the
Enron price and the replacement price, then Enron should be liable for
these costs NOT Gulf. I suggest the following options:

1) Put back in the default contract number in the Enron/Crestar agreement
as we had last week, this way if Enron fails to notify by 9:45am, then
Crestar/BP can nominate to the default contract number and Enron can change
the contract numbers internally.
2) Add a clause to either the Enron agreement or the Gulf assignment
agreement to state if Enron fails to inform and/or take, then any penalty
costs/price difference incurred by Crestar/BP shall be passed onto Enron.

Please advise what Enron's position is and how we should proceed.
------

Bruce Kohrs
Phone: (403)205-7684
Fax: (403)266-1947
e-mail:bruce_kohrs@keyspancanada.com