Can we discuss this on Monday?

Mark
----- Forwarded by Mark Whitt/NA/Enron on 06/08/2001 10:45 AM -----


	"Brian Stone" <htebs@huber.com> 06/08/2001 09:33 AM 	   To: <Mark.Whitt@enron.com>  cc:   Subject: Re: San Juan long term Purchases	


I'm very interested.  Can you put together a proposal?
Brian

>>> <Mark.Whitt@enron.com> 06/08/01 10:27AM >>>

I have been working on the San Juan deal we discussed.  The expansions
don't look very good.  Sonora Pipeline which is the Kinder
Morgan/Calpine
project is doubtful.  The rates on it look pretty good ($.39) but that
is
because they need subscriptions of  750 MM/d for 20 years.  It doesn't
seem
to feasible right now and they don't seem very confident in their
ability
to get it done.  The Transwestern expansion is only out of the Permian
basin so it won't fit and we believe that El Paso will be the same
although
that has yet to be determined.  However, it seems unlikely  that El
Paso
will expand out of the San Juan becuase their load growth is primarily
on
the south leg.

That is the bad news!  The good news is that we have existing space
that we
acquired on El Paso that began in June and continues through May of
2006.
Since the spreads have come in it is probably priced pretty well and I
believe we would give it to you at market.  We could structure it like
our
Wyoming deal in that we would manage the capacity and California
Border
sales for you.  I believe the space we have goes to PG&E.  The other
good
point is that you could control the ROFR in 2006.

Let me know if this is something you are interested in and I will work
up a
proposal for you.

Thanks

Mark