The contract we are trying to put in place with them is boilerplate but until recently they had held it for a lengthy period of time without comments. I am working to finalize this agreement and hope to have it completed within the next week. I need to talk with Janet but she indicated there has always been some problem regarding us supplying gas for you under that contract. Can you clarify that for me, the new guy. It sounds like we would like to have delivered gas in the past but were unable to for some internal problem.

I would assume the City of Austin gas contract did not allow for intra-day takes and they did not have that ability priced into the agreement they have with Lonestar. The same thing happened on HPL and we basically shut people off from these type takes by putting the flow limiter in place. I will need to understand what your gas requirement will be then start working to put something in place to handle this arrangement.

If possible, lets plan on meeting sometime this week so I can get a better handle on the issues. 

 -----Original Message-----
From: 	Forney, John M.  
Sent:	Monday, November 12, 2001 2:48 PM
To:	Bryan, Gary
Subject:	City of Austin Proposal - Sandhill Plant



Gary,
Doug Gilbert-Smith,  Mike Curry and myself met with City of Austin on Friday to discuss intraday takes from their plant.     We are allowed under our call option (power) to pull power from them intra-day.    The problem is,  their gas contract is very restrictive and Lone Star imposed a flow limiter on both of their plants.
They are agreeable to allowing intra-day calls if we can arrange our own gas purchase and balancing contract.   How difficult would this be?

Also,  they said that they are still waiting for a gas enabling agreement from us.    They said that this was boilerplate language and they had been working with Janet Wallis.
Do you know anything about this?

JMF