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The numbers are Mark's; we'll have to discuss whether they are appropriate.
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I've omitted any payment for a letter of intent because since they are nonbinding, letters of intent are of little value to Transwestern.
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Call me after you've reviewed this and let's discuss how you want to proceed.
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From time to time during the term of the enabling agreement, IGS may present brief, preliminary project proposals to Transwestern.
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If Transwestern desires IGS's assistance in developing a particular project, it will so notify IGS in writing and shall execute an agreement with IGS adopting the following terms and conditions: 1.
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Retainer for project development: $1000/month plus expenses.
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Project development shall include but not be limited to: research, due diligence, market analysis, negotiation with counterparties (to the extent specifically authorized by Transwestern), reporting to marketing representatives of Transwestern as requested by Transwestern, and preparing a detailed written proposal.
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Transwestern and IGS may agree in writing to other project-specific requirements.
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Transwestern shall continue to pay the retainer each month until a definitive agreement is signed with the counterparty or Transwestern notifies IGS in writing that it has decided to terminate the project.
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2.
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If Transwestern accepts the project described in IGS's written proposal (or with modifications after reviewing the written proposal), it shall pay IGS a fee of [the lesser of] $5000 [or ___% of the net present value of the project].
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"Accepting the project" means that the project meets Transwestern's financial, regulatory and other criteria and the Transwestern Commercial Group has obtained the necessary officer approval to pursue the project to completion.
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Accepting the project and paying IGS pursuant to this paragraph in no way obligates Transwestern to pursue the project to completion.
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3.
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If Transwestern signs a definitive agreement with a counterparty for the project, it shall pay IGS $10,000.
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Additionally, the parties may negotiate an additional incentive fee (to be agreed upon and documented at the outset of the project).
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(I will also include provisions on termination, confidentiality, etc.).
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I know how much you're looking forward to "Ted's Weekend of Rest and Relaxation" and I also realize that carting me back and forth to the car dealership wasn't exactly on your list of things to do (bear in mind the dealership is roughly 5 minutes from your apartment)...So, I'm offering you an out.
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I can find someone else to help me if you want to bail (I know how important your pool-side time is - Remember it's all about you and your needs." Just let me know. FYI: Galveston does not look like this...
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Here is a chart cross-referencing Gas Daily price points with points of TW, for purposes of imbalance valuation.
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If you have questions call Jeff or me.
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Hey, My week is actually going very well so far (my trader left around noon so today should be a piece of cake).
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I know you guys have been working really hard the last couple of days, but I hope it paid off and the presentation went well yesterday.
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However, given your comment about y'alls idea getting the axe in the short term, I'm not sure that was necessarily the case.
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Anyway, I'm sure at least your steak dinner was a hit (so were you able to resist the red wine this time, you lush?).
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In keeping with my very serious nature (yes, you heard me serious), I've attached little story for you...I got a pretty good chuckle out of this one.
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PS.
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- Thanks again for carting me around and feeding me Saturday...I, as usual, had a great time.
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Oh, and by the way, kudos to both of us for actually making it through a home movie Subject: FW: FW: Southwest Airlines
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There is no pleasure in having nothing to do; the fun is in having lots to do and not doing it.
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-Mary Little
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Maybe you should ignore the sentiment of the quote I sent earlier...I think you may be adhering to it too faithfully.
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At this rate we may have to start pinning notes to your shirt to remind you to do things.
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However, having driven with you on several occasions I feel confident you will be able to pass the test with flying colors.
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Keep in mind though that if you end up failing I will not let you forget it (and, as we have established, I have the memory of an elephant).
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I'll keep discussion of me to a minimum and just say that things are well on 32.
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Now back to what's really important...you.
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Thought you'd like to know that the Dixie Chicks are coming back to Houston Dec. 12 and will performing just down the street from you at the Compaq Center...it's all about you and your needs.
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Yesterday Jeff Fawcett, Lee Ferrell and I met with Dynegy marketing and legal/regulatory representatives regarding TW Transport Options.
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Overall the meeting was very positive.
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We had nothing but encouraging remarks from the marketing representatives.
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However, the regulatory people (Sarah Tomalty, Ed Ross) had a couple of issues.
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The biggest issue is a marketing affiliate concern.
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Apparently Dynegy is on a crusade at FERC to place further limits on deals pipelines can do with their marketing affiliates.
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They have run into situations in which pipelines (examples: Koch, El Paso) have blatantly favored their marketing affiliates to the extent that Dynegy cannot even do deals with them.
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(In fact, one of the problems with Koch has been Koch's price option deals with its affiliate.) The perception is that the affiliates, by using "funny money," can always make themselves the highest bidder, with a net benefit to the entire organization (pipeline + affiliate).
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The remedy Dynegy is proposing is to require a marketing affiliate, if it is the highest bidder, to credit back the difference between the price it pays and the price offered by the next highest bidder.
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The presumption is that the affiliate has an unfair advantage because it is able to pay above market value in order to get the capacity.
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Dynegy's proposal would encourage affiliates to pay "real" dollars.
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While it emphasized its belief that TW does not favor its marketing affiliates, Dynegy would like for us to include in our filing some limitation on options transactions with marketing affiliates.
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It is likely that other pipelines will file for the ability to sell options once FERC approves our filing, and Dynegy would like for this type of protection to be part of the precedent set by our filing.
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Ed hinted that FERC may be considering a divestiture requirement for marketing affiliates, and that pipelines can avoid this extreme result by voluntarily limiting their transactions with affiliates.
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Shelley, I know you've discussed this issue with Ed already and our reactions were the same.
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Basically we politely told Dynegy that we don't believe we're part of the problem and that we are therefore not inclined to unnecessarily disadvantage our company by further limiting ENA's ability to do business with TW.
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We can probably expect an intervention with comments or a limited protest addressing the issue.
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The other regulatory question was whether we intend to file each option deal as a negotiated rate.
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My analysis of this issue is that since we're proposing the option fee as part of the transport rate, options would always be a type of negotiated rate and would need to be filed.
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If you think this is not the right answer, please let me know because we need to decide it before we file the tariff sheets.
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Sarah's question seemed to be more one of curiosity rather than a basis for protest.
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Like the Indicated Shippers, Dynegy appeared interested in an all-customer meeting to discuss the service.
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Jeff and the rest of the commercial group are looking further into whether and when we would have such a meeting.
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If you have any questions or concerns please let me know.
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Hey Tonto (a.k.a - the trusty, but silent, side-kick to the Lone Ranger or in this case the Big D) The play was very good and I think well received.
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I'd forgotten how blown away I was by some of the songs the first time I saw it in NY.
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The cast members really have to have incredibly powerful voices to pull off a few of the most poignant numbers ( I think this could be your true calling).
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I caught the third day of Corey's Jeopardy run last night here at the office (yes, I had to come back after the play...I love my job!).
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Anyway, I'm sure I'd mentioned it before but yes she is a very smart girl.
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As a result of that, she has managed on several occasions over the years to detract from my enjoyment of playing Trivial Pursuit or watching Jeopardy by absolutely obliterating me (The girl actually did her senior thesis on Trivia).
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Kori told me she saw you last night at Steak Night and introduced herself since I failed to do so the last time we went.
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I should let you know though that she was very offended this morning that you didn't spell her name right in the email - I mean it's such a common spelling.
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So was Darren there last night to meet her or do you just think they'd make a good match?
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She's a very fun girl.
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Hope you day is going well and that the move to 30 went off without a hitch.
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Good luck with all of the "fun" meetings.
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Shorty -- Due to the lack of response yesterday, I'm beginning to worry about your success with the road test...I'm going to assume that you didn't get around to it.
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Hey there yourself, Sorry I haven't written you guys in a while to keep you properly updated.
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I am indeed checking on flights to Seoul and don't think I'm going to go at exactly the same time as my parents.
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As much fun as they are, I figured we would probably do some different things than what you have planned for them.
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As for Ted, things are still going well although I haven't see him at all this week (we are two very busy people).
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But, we had a great laid back day last Saturday and I think have hit that comfortable stage...you know, not quite so formal about dates etc. In one sense it's great, but it also makes things a lot harder to read.
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Anyway, I'm sure my Mom told you guys but Travis and Kathy got to meet him and I think it went well.
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Hopefully, if we're still dating come December, you and Chuck can meet him when you come back to visit.
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I'm planning on dragging him to at least one of the U.T.
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games, I just have to find out when he wants to go (as well as properly prepare him for the Scott/Kelley/Parks/Wild Card gang and the full-day affair that is a U.T. game).
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Things in Houston are good and definitely warm.
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I went with Emily and her Mom last night to see the musical "Rent" and it was wonderful.
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Also, I'm going out to San Diego for the Labor Day weekend to visit Hoot's daughter Julie.
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Needless to say I am very excited.
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Talk to you guys soon, Susan
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I've looked into whether we can terminate our Val Verde interconnect agreement with Burlington, and have determined we may do so only if we take the following steps: 1.
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Terminate the OBA by giving 30 days notice to Burlington.
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Paragraph 13 of the 6/1/94 OBA with Burlington (as successor in interest to Meridian) provides that either party may terminate the OBA "at the end of the primary term, or thereafter by providing thirty (30) days prior written notice" to Burlington.
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(The one-month primary term ended June 30, 1994 and has since gone month-to-month.) 2.
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On the effective termination date of the OBA, terminate the interconnect agreement by giving 30 days notice to Burlington.
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The 12/31/92 Interconnect Point Operating Agreement, Paragraph 6, provides that either party may terminate on 180 prior notice after expiration of the primary term.
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This is of limited use to us since the primary term does not expire until 12/31/02.
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However, the paragraph also provides that the agreement "may be terminated by either party upon thirty (30) days prior written notice in the event the OBA between the parties is terminated."
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As we've already discussed, termination of the agreement is an extreme measure from a customer relations standpoint and we probably need to weigh our other options first.
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Let me know if you have further questions.
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Drew -- here is Lorraine's update on the Val Verde situation that I mentioned in my previous e-mail.
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