TW Bullets 12/22 ,
 Cal Border backhaul - Operational linepack, slightly reduced demand at the 
Cal border, and California LDC's returning imbalance gas, all combined to 
create an excess gas inventory position at the border for TW.  We then 
received a shipper request to backhaul some volume to SouthWest Gas at Las 
Vegas.  The inventory position necessitated that TW sell some of the gas for 
the backhaul and we negotiated a PG&E based index price.  Economics were as 
follows:

 12/18/00 11,500 MMBtu @ $13.18 =   $151,570
 12/19/00   6,855 MMBtu @ $14.595 = $100,049
 Transport 23,000 @ .15   =  $    3,450
 Park N Ride   4,645 x $.20 x 2   =  $    1,858
 Total          $256,927

PNM Park n Ride - Burlington Resources has had difficulty delivering all 
their gas into San Juan that they nominated this week.  When they could not 
make the delivery rate, we began allocating their volume; this resulted in 
delivery cuts to PNM who then canvassed the market to look for alternate 
supply.  Late Tuesday morning PNM called asking about Park N Ride capability 
on TW.  We negotiated a $.45 rate for 20,000 MMBtu for one day ($9,000).  
Because the rate was above max, we had to file the deal with FERC.  This was 
exacerbated by the fact that because of the customer's request for service, 
we had to ask FERC for a waiver on the "one day prior notice" requirement.

FERC California Pricing - FERC staff members continue to call for help in 
understanding transport and commodity prices for gas at the Cal border.  News 
to us was the fact that FERC has access to EnronOnline but did not understand 
how to use it.  They are also getting a subscription to Gas Daily.

Capacity West - On Thursday 12/21 we did a one day posting for an additional 
10,000 MMBtu/d of LFT capacity for January from San Juan to Cal Border.  The 
current January spread to Needles is $5.40 net of fuel.

SouthWest Gas - We met with SWG management last week to discuss the service 
being provided by TW at their new interconnect.  So far everything is working 
well, however, SWG is attempting to maximize their flexibility under the OBA 
agreement and their ability to take swing gas from TW.  Our response has been 
we will continue to help them when we can within operational limits but we 
cannot jeopardize the rest of the TW west system.  SWG indicated they would 
like more information regarding our mainline expansion project; they recently 
purchased 85,000 MMBtu/d of capacity on the Kern River system.

Pogo Producing - Pogo would like to flow gas to TW's West Texas lateral by 
February 1.  They estimate volume of 20,000 MMBtu/d and have no qualm on the 
approximately $400,000 interconnect cost.  This is a new well near the 
recently connected EOG well.
bullets@enron.com