Please be advised that a manual adjustment will need to occur on ENA's contract 24924.  The deal was structured whereby TW would receive a marketing fee equal to 50% of the rate negotiated in excess of the original contracted rate between ENA and TW; the other 50% goes to ENA.

Here's the basics:
ENA's contract with TW is at a daily rate of $0.0600 (one-part)
The release to Burlington is at a daily rate of $0.1020 (demand only plus applicable commodity and fuel based on usage)
TW will bill Burlington through normal course of business (reservation of $71,400 [$0.1020 x 25,000 x 28days] plus applicable commodity fees)
ENA demand invoice will need to be adjusted so that they only receive a capacity release credit of $56,700 [($0.1020 - $0.0210) x 25,000 x 28 days] Amy -  please do an adjustment of the capacity release rate by inputting a discount of $0.0210 for this line item on the manual invoice.  
Richard - When payment is received from Burlington for their acquisition, please process the credit amount of $14,700 to ENA.
TW will need to book marketing fee revenues of $14,700 [$0.0210 x 25,000 x 28 days]  Richard - Has a separate account been established for these revenues?

If you have any questions, please let me know.

Elizabeth


 -----Original Message-----
From: 	Brown, Elizabeth  
Sent:	Wednesday, February 27, 2002 8:29 AM
To:	Giambrone, Laura; Hernandez, Bert; McEvoy, Christine; Miller, Beverly; Miller, Christopher L; Minter, Tracy; Mulligan, Amy; Ward, Linda; Donoho, Lindy; Lindberg, Lorraine; Lohman, TK; Lokay, Michelle; Watson, Kimberly; McConnell, Mark; Y'barbo, Paul; Buchanan, John
Cc:	Dietz, Rick; Lee, Dennis
Subject:	Transwestern Capacity Release Report for February 2002 Reservation Invoices

Attached is the file to be used for demand invoice verification for January 2002 capacity release transactions.  If you have any questions, please feel free to contact me.

FYI - Based on the flash invoices I generated last night for the capacity release transactions and global settlement contracts, please note the following:
ENA K #24924 Res - manual rate adjustment is needed for the 50/50 split of marketing fees for capacity released to Burlington
Conoco K #20748 Res - delete the Thoreau to E. Thoreau line item
Conoco K #20835 Comm - delete authorized overrun line items and roll volumes up to the commodity charge type
Texaco K #25923/25924 Comm - when verifying fuel rate of 4.5% between the lateral and mainline contract sched volumes, there is a ldifference that could not be attributed to rounding.  Need to verify if difference is caused by makeup volumes; and if delivery makeup scheduled, then invoice should be adjusted accordingly.

Please remember that the notes above are based on data as of 2/26/02.  I will review again on the 1st.  

Schedulers -  Please provide a final copy of the delivery tolerance report to both me and Marketing so it can be determined if makeup will affect the rate to be charged [some contracts are based on calculations, especially when charging incremental fees for alternate point usage].

 << File: TW2002.02.XLS >> 

Thanks,
Elizabeth
x3-6928