Kent,
     If we do so, I would assume that the reasoning is based as much on pricing as it is on volumetrics.  What are Jo and Larry's views on the market at this point?

Dan

 -----Original Message-----
From: 	Miller, Kent  
Sent:	Thursday, September 20, 2001 10:26 AM
To:	Horton, Stanley; McCarty, Danny
Cc:	Hayslett, Rod; Miller, Mary Kay; Neubauer, Dave; Fossum, Drew; Peters, Jerry
Subject:	October Operational Storage Purchase

Stan and Dan,

We are currently looking at our October storage plan and are recommending that we purchase 0.5 Bcf of operational storage for October. We need to begin doing the deals beginning Monday to get the gas in place for the month.

Our projected operational storage balance at the end of September is approx. 11.8 Bcf.  The recommended levels for October that were discussed with the customers in the SLA proceeding was a low of 8 Bcf and a high of 12 Bcf.  We feel that it would be prudent to be at or slightly above the high side of the range.  Both Mary Kay and Dave agree that a 0.5 Bcf purchase would match the strategy that has been discussed with customers in the SLA proceedings.  I have spoken with Jerry Peters and he feels that we have the necessary RAC approval based on last months approval process.

Operationally, 0.5 Bcf fits well with our physical plan also.  This leaves some room for potential long gas in Oct/Nov that would not compromise the integrity of the fields.  

If you have any questions, please give me a call at x7417.

Thanks,  Kent