RE: Northern v. ONEOK ,
 Rick,

Beautiful. =20

I would like to add that we got the benefit of this method of calculating p=
rejudgment interest because the arbitrators specifically adopted Northern's=
 prejudgment interest methodology, which was based on the fine work Harry, =
Tangi and you did on our post-hearing briefs. =20

Of even more significance,  the panel specifically noted KN's course of per=
formance of using our meter numbers for its monthly plant settlements when =
the panel rejected ONEOK's argument that ONEOK had never "accepted" the met=
ers.  Harry and Tangi brought this evidence to our attention at the outset =
of this litigation, and it became a centerpiece argument for us. With their=
 and your fine work (and the unbelievable hours all of you put in, late at =
night, early in the morning, on the weekends, and frequently on an emergenc=
y basis, with little or no notice), you made ONEOK's attorneys very unhappy=
 with your testimony at the hearing.  I loved it.

This was a team effort, and congratulations are due all the way around.  It=
 was my great pleasure to have partnered with you on this.

Britt=20

 -----Original Message-----
From: =09Dietz, Rick =20
Sent:=09Wednesday, July 11, 2001 4:04 PM
To:=09Davis, Britt
Cc:=09Dykes, Tangie; Fossum, Drew; Ringblom, Kathy; Porter, Gregory J.; Zik=
es, Becky; Carrier, Lee; Woodson, Harry; Corman, Shelley; Lowry, Phil; Mill=
er, Mary Kay
Subject:=09RE: Northern v. ONEOK

Britt,

We have done a thorough analysis of ONEOK's calculation of pre-judgment int=
erest and are in agreement with their amount due Northern of ($56,097.69). =
=20

The reason why the interest is due Northern (in apparent contradiction to N=
orthern being instructed to pay ONEOK approximately $1.2 million dollars fo=
r the retroactive correction of the meter factor error) is tied to the calc=
ulation of the accumulated interest.  Since this is a dollar-valued OBA, ea=
ch month's imbalance was valued at the appropriate monthly index price and =
a 6% simple interest calculation was applied from that month until the curr=
ent period.  We had a significant amount of monthly imbalances due Northern=
 early in the review period that carried forward very large credit interest=
 balances due us.  For example, July 1998 had a credit imbalance due NNG va=
lued at ($753,541.27).  This amount calculated at a 6% interest rate for 99=
7 days (September 1998 through June 2001) resulted in a credit interest amo=
unt due NNG of ($123,498.19).  For comparison purposes, contrasting with th=
is month is a large debit imbalance due ONEOK of $769,407.44 for the month =
of December 2000.  This amount calculated at a 6% interest rate for only 11=
3 days (February 2001 through June 2001) resulted in a debit interest amoun=
t due ONEOK of $14,292.01.  By summarizing these two months, we have an imb=
alance value that is due ONEOK of $15,866.17 with a corresponding net inter=
est valuation due Northern of ($109,206.18).  This scenario plays out for t=
he entire review period netting to a cumulative credit amount due Northern =
of ($56,097.69).

If you would like to review the calculations in detail, please let me know =
and I will forward the spreadsheet to you.

Rick, Harry & Tangie
 -----Original Message-----
From: =09Davis, Britt =20
Sent:=09Monday, July 09, 2001 4:51 PM
To:=09Woodson, Harry
Cc:=09Dykes, Tangie; Dietz, Rick; Fossum, Drew; Ringblom, Kathy; Porter, Gr=
egory J.; Zikes, Becky; Carrier, Lee
Subject:=09Northern v. ONEOK
Importance:=09High


=09Harry,

=09We need your help yet one more time.  Tomorrow morning I will have hand-=
delivered to you a letter from Ben Singletary, ONEOK's attorney, stating th=
at they calculate pre-judgment interest (using Northern's methodology, whic=
h the arbitrators specifically approved--thanks again to you, Tangi and Ric=
k!) such that ONEOK actually owes Northern about $50,000.  We certainly don=
't mind them owing us $50,000; however, we want to see if ONEOK owes us eve=
n more than that. =20

=09If you need additional information (such as the actual panel award), ple=
ase call Becky Zikes and she will make sure a copy gets to you.  I will be =
out from about 9:30 to 3:00 tomorrow, but will be in later in the day.

=09Many thanks.

=09Britt
rick.dietz@enron.com