Re: NGPL Backstop Agreement for Titan Land Development Company, LLC ,
 Attached is my red-line of Chris' redline.  I want to make sure we try to 
define what they are going to do for $50,000 and that they let us know early 
if it looks like the costs are going to be higher (I think optioning 
premiums, survey, and landman should cost more like $100,000).  

Another key facet of this deal is that we need the right to force assignment 
of the easement options so we can either build the line to NGPL ourselves, or 
to Nicor only (assuming they'll go for this).  If not, we may want to secure 
the easements to the Nicor point ourselves so we have dual-pipe flexibility.

Finally, we need to make sure they talk to us before approaching any of the 
landowners directly adjacent to our property so we can tell our nearby 
neighbors that they're coming in advance, and so we can let NGPL know who to 
talk to - and more importantly - who not to talk to.  I did not include this 
last point in my mark-up.

The idea here is to fullfill the representations made to our potential site 
buyer that we would secure easements for a gas pipeline.  Since the buyer has 
a large gas marketing affiliate, they may balk at a Nicor-only gas supply 
option (as did Julie Gomez).  Therefore, we feel its prudent to have a dual 
pipe option so we can argue that this is a site value enhancment and that 
NGPL constitutes a highly liquid supply source with pricing that would more 
than amortize the incremental capital cost associated with the added 6 miles 
of pipeline (approximately $4 million).  Scott has indicated that he wants us 
to secure easement options for a gas line and that the buyer is willing to 
pay for 50% of those costs as part of the site purchase.  Prior to signing 
this authorization, we will have gotten Nicor's proposal for a 3 mile line so 
we can weigh the alternatives.  Chris has already initiated contact with 
Nicor (their first offer over the phone was scary).








   
	Enron North America Corp.
	
	From:  Chris Meyer @ ECT                           10/04/2000 03:57 PM
	

To: Kay Mann/Corp/Enron@Enron, Fred Mitro/HOU/ECT@ECT, Rusty 
Stevens/Corp/Enron@ENRON
cc:  

Subject: NGPL Backstop Agreement for Titan Land Development Company, LLC

Attached below is my mark-up of NGPL's draft for backstoping its expenses in 
perfroming preliminary work for a proposed interconnect between NGPL and the 
Plant.  Please review and comment.

chris
x31666
chris.meyer@enron.com