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This would always put a Seller at a disadvantage.
dev29
22,758
Steve, This is landing at a bad time.
dev29
22,759
I'm going to be in Omaha going over the 2002 plan, and doing other business.
dev29
22,760
Unfortunately, I cannot reschedule this one so I'll have to miss the Wine fest.
dev29
22,761
Kim, I would like to look further into getting onto the MOD Board.
dev29
22,762
Any suggestions on what to do?
dev29
22,763
Thanks.
dev29
22,764
Dan
dev29
22,765
Cindy, I will handle and respond to the attached.
dev29
22,766
Dan
dev29
22,767
Eric, I'd suggest: Janet Place--Legal Mary Kay Miller--regulatory Technical--???
dev29
22,768
talk with Phil Sound O.K.?
dev29
22,769
Dan
dev29
22,770
Stan, I just glanced at your new org.
dev29
22,771
chart and thought I'd make a comment (or really more of an observation).
dev29
22,772
Jesus had 12 direct reports and screwed up on one of them, so while I agree that a flat organisation is best, I think that you'd better be very careful or you get a godlike ego.
dev29
22,773
Dan
dev29
22,774
Cindy, No. I'll give her mine and Eric's.
dev29
22,775
I fear that if she has Stan's, he'll get random calls that shouldn't rise to his level, and you'll lose control of your ability to screen his calls for priority.
dev29
22,776
Dan
dev29
22,777
Larry, At what point do we consider taking off the '02 hedges?
dev29
22,778
Is that a game we should play or not?
dev29
22,779
What is your view of market for '01 and '02?
dev29
22,780
Dan
dev29
22,781
Stan, Last week we coordinated with Steve Kean, Rick Shapiro, Joe Hartsoe and the Washington office, so that they would make sure that our objections (as outlined in Dennis's communication below ) to certain portions of Bingaman's proposed legislation would be heard.
dev29
22,782
They've all been working on the issue this week and will continue through the Bingaman hearings.
dev29
22,783
Williams, El Paso and Duke have all done the same.
dev29
22,784
Dan
dev29
22,785
Cindy, No. This are working meetings which kick off the due diligence review for each of the withdrawn partners.
dev29
22,786
So, everyone will be sending their worker bees only.
dev29
22,787
Dan
dev29
22,788
Stan, Take a quick glance at this.
dev29
22,789
Dan
dev29
22,790
Stan, The initial numbers from El Paso (as a Seller of their interest) would have equated to a 14 to 15x EBITDA with a valuation more in the range of $180m.
dev29
22,791
While we knew that they wouldn't be a buyer at that price, we expect that they would come in at $80-$90m.
dev29
22,792
They have yet to respond.
dev29
22,793
In the mean time, we are sitting on Deb's lowball (by her own admission) offer for two to three more days.
dev29
22,794
Dan
dev29
22,795
Eric, Julie has asked to take vacation on Friday, so we'll need Susan to cover phones, faxes, and general office business on Friday until 6:00 Eastern/ 5:00 Central.
dev29
22,796
Based on our efforts in Washington this week, Friday could be a very busy day.
dev29
22,797
Dan
dev29
22,798
Pat, Thanks.
dev29
22,799
I appreciate the input.
dev29
22,800
Let me know if anything pertaining to the specific routing of the line begins to bubble up.
dev29
22,801
Dan
dev29
22,802
Greg, I have no interest for ETS.
dev29
22,803
Dan
dev29
22,804
Kim and John, I agree with Kim's second point.
dev29
22,805
I don't know how Ballentine's language works--there doesn't seem to be an offer and acceptance of anything specific.
dev29
22,806
I'd like to at least have a contract that has either been negotiated with the third party of the ability to negotiate it myself.
dev29
22,807
Can we clean this language up a little?
dev29
22,808
Dan
dev29
22,809
Kim and John, I assumed that we'd moved away from that point in favor of the right to match.
dev29
22,810
Is that not the case?
dev29
22,811
Dan
dev29
22,812
Stan, The teleconference today (with TCPL) held nothing really new.
dev29
22,813
We did agree not to bring in any other third parties, such as El Paso, at this time.
dev29
22,814
TCPL noted that they would be interested in a roles as the developer (and perhaps as the operator or some or all of the new line), and would also expect to be responsible for all Canadian legal and regulatory matters.
dev29
22,815
They acknowledged that we have more expertise in the areas of US rates and regulatory and legal, finance, commercial and marketing activities and would expect that we take the lead there.
dev29
22,816
We are working toward a first cut on a JV structure over the next two weeks.
dev29
22,817
Dan
dev29
22,818
No interest.
dev29
22,819
Shelley, I haven't seen any invitation list for Friday's Plan Review with Stan yet, but we are up at 10:00 and will go until 1:00.
dev29
22,820
I'd like you to be in through the whole thing if possible.
dev29
22,821
After that, do you think that you and I should walk through the whole plan with the key people in your group (and maybe Steve's)?
dev29
22,822
Give me a call if you haven't received the Plan handouts by tomorrow.
dev29
22,823
Thanks.
dev29
22,824
Dan
dev29
22,825
Shelley, I was thinking just revenue, but we can just as easily do O&M, too.
dev29
22,826
Which would you prefer?
dev29
22,827
Dan
dev29
22,828
Dennis, I'm fine with the letter.
dev29
22,829
And, I think that it should be well received.
dev29
22,830
Dan
dev29
22,831
Yes
dev29
22,832
We wouldn't.
dev29
22,833
I'll talk with Kim.
dev29
22,834
Eric, I'll be talking with John sometime this afternoon.
dev29
22,835
Dan
dev29
22,836
Thanks
dev29
22,837
Eric, FYI, I had my Assistant look back through call logs for the past ten weeks--John never called once.
dev29
22,838
I called him yesterday and left him a lengthy message and received no return call.
dev29
22,839
I called again today and received no return call.
dev29
22,840
You may have a good relationship with these guys, but I think that John may be a bit flaky and would question his veracity.
dev29
22,841
I'll try one more time, then I'll call it quits.
dev29
22,842
Dan
dev29
22,843
Rod, This would be preferable, but I don't understand what rules could be changed to alter the existing accounting treatment.
dev29
22,844
Also, Kent's numbers do not decline over the suggested ten year life of the project, and I'd bet that the injection and withdrawal rates decline just like they did after the project was initially developed.
dev29
22,845
The other thing to keep in mind is that there will be no long term contracts securing the anticipated cash flow.
dev29
22,846
We will be relying on our storage desk to secure margins in the short term market (which is the only way to do high injection/high withdrawal storage to capture short term market anomalies).
dev29
22,847
Are you okay with that?
dev29
22,848
I am.
dev29
22,849
Dan
dev29
22,850
Martha, Would you drop me a quick note and update me on your progress?
dev29
22,851
Is there anything that you need to be doing at this point?
dev29
22,852
Also give me your general feel for the market's receptiveness to date, the caliber of Luminent's staff, and how the relationship is going so far.
dev29
22,853
If you have some available time next week, call Julie and get on my calendar.
dev29
22,854
Thanks.
dev29
22,855
Dan
dev29
22,856
Janet, I'd like you to talk with Rafael if you have time.
dev29
22,857