No draft of this order/staff recommendation is available.

Though I haven't seen a draft or a copy of the Powerpoint presentation,
from the discussion at today's Open Meeting, Staff is recommending to the
Commission the following (along with a technical conference to work out
specifics):

-  The Commission convert El Paso's Full Requirements service (FR) to
Contract Demand service (CD)
- Allocation of CD is based on the greater of (1) a shipper's billing
determinants from the 1996 settlement, or (2) coincidental peak (a
shipper's own usage) based on demand on Sept. 12, 2001
- The Commission assign specific receipt point rights to shippers based on
El Paso's proposed 20 pooling point configuration
- A technical conference be convened, that may include attendance by the
Commissioners, in the Staff recommendations

During the discussion, Staff pointed out that the FR contracts in question
have become unjust and unreasonable.  However, as part of the required
conversion, Staff recommends that the existing settlement rate structure be
maintained and that FT2 FR rate schedule (for a capped amount of small
customers) be maintained to protect a very few small customers.

A more in depth summary of the discussion will be sent shortly.


===================
Nancy Bagot
Manager, Govt. Affairs
Northern Natural Gas Co.
1500 K Street, NW
Suite 400
Washington, DC  20005
202-216-1129 direct dial