I don't have copies of the assignment docs in my files. Can you see if somebody in Legal or Global Contracts could forward me a copy?

Thanks,
Darren

 -----Original Message-----
From: 	Schwieger, Jim  
Sent:	Tuesday, September 18, 2001 12:43 PM
To:	Vanek, Darren
Cc:	Schwieger, Jim
Subject:	RE: 

Darren:
Cannon and Kinder Morgan are both in agreement to the assignment.  Do you have a recommendation of what Credit would like the assignment to look like?  Is the one that was used on the first deal OK?  Please let me know so that we can get this going again.

	Thanks,  
	Jim

 -----Original Message-----
From: 	Vanek, Darren  
Sent:	Sunday, September 09, 2001 4:06 PM
To:	Schwieger, Jim
Subject:	RE: 

Jim,
We need to get Cannon and Kinder to agree to the assignment, so the transactions can happen simultaneously. Credit is not comfortable wearing the risk with Cannon for any length of time.

 -----Original Message-----
From: 	Schwieger, Jim  
Sent:	Friday, September 07, 2001 11:02 AM
To:	Vanek, Darren
Subject:	RE: 

The Kinder Morgan assignment could also be put in place with this deal.  Kinder Morgan & Cannon Interest have there own deal and Kinder Morgan has been pretty flexible in the past, so I do not think it would be a problem.  I would like to go forward with this deal quickly to avoid having the Market move against this transaction.  Please get back with as soon as you can.
	Jim 

 -----Original Message-----
From: 	Vanek, Darren  
Sent:	Thursday, September 06, 2001 6:57 PM
To:	Schwieger, Jim
Cc:	Rohauer, Tanya
Subject:	

Jim,
Sorry about the delay in correspondence, but we have been reviewing the history of the previous transactions. It appears that the deal was eventually assigneed to Kinder Morgan.  We should pursue the deal with Kinder. We would greatly appreciate any information that you might have about the Kinder assignment as well as your thoughts about pursuing the deal directly with Kinder.

-Darren

From: 	Vanek, Darren  
Sent:	Wednesday, September 05, 2001 7:39 AM
To:	Rohauer, Tanya; Williams, Jason R (Credit)
Subject:	Cannon Interest Houston Synthetic Storage Transaction
Importance:	High

Tanya,
Quick background: Jim Schwieger brought me this deal last week at the request of Tom Martin. It appears as though HPL did 2 similar transactions similar to this in past.  The information that we have on Cannon contains the following additonal information inCAS:
	Cannon Interests Houston is a dba for Patrick Locke (a person). No financial trading.  All financial trading 	should be allocated to an affiliate, Westpark 	Resources, Inc. executed ISDA.

	We are holding $900,000. as prepayment of the $.21/mmbtu premium due to amortize 11/00 - 2/01.  Amount 	will be applied to third party sales account 	(4830-999) and allowed to flow through profit/loss.  Remaining 	portion will settle normally 11/00 - 2/00 without the $.21 premium.  Movement of the the $900,00 will take 	place during 4/00 accounting.

I believe that these comments are in relation to the HPL deals and are outdated. In addition, I believe that ENA recently purchased capacity from Cannon, which is reflected in a current annuity due to Cannon. According to notes in TAGG, Barry Tycholiz was the commercial person involved in the capacity transaction.

The new transaction mirrors the old one with a change of time period and pricing:
ENA takes delivery of 2.5bcf/per month @ Houston Ship Channel Index 
June 2005 -Oct 2005
June 2006- Oct 2006
June 2007- Oct 2007
June 2008- Oct 2008
Cannon takes delivery of the same quantity @ Houston Ship Channel Index weighted average price for the volume + $0.30
November 2005- Feb 2006
November 2006- Feb 2007
November 2007- Feb 2008
November 2008- Feb 2009

Points of note:
 Original transaction began with HPL taking delivery in June 2000 going through Feb 2003 and later extended through  Feb 2005.
Cannon was required to pay $900,000 March 2000 (storage fee?) and to post a $4.2MM Letter of Credit for the term of the deal.
In addition, Cannon was required to post subsequent Letters of Credit "in the amount of 5,083,333 times the weighted average price determined....."  
The quantities are the same as the original transaction, but I do not think that there will be an upfront payment for storage services.


-Darren