RE: Transwestern Pipeline Payment Under Protest (Confirmed PAYMENT ,
 OK

 -----Original Message-----
From: 	Saunders, James  
Sent:	Thursday, February 07, 2002 7:45 AM
To:	Hayslett, Rod; Geaccone, Tracy
Cc:	Rittgers, Dan; Russo, Gavin; Chandler, Bob; Cobb Jr., John; Zahn, Gary; Kilmer III, Robert; Lokey, Teb
Subject:	FW: Transwestern Pipeline Payment Under Protest (Confirmed PAYMENT BY MAIL ONLY   -  $356,736.95)

Rod and Tracy,

As a result of a state of Colorado audit TW has been assessed tax (+penalties and interest) for compressor fuel use ($.4mm), and on the purchase of a La Plata facility ($1.3mm). We are protesting. However, it has been recommended, and I concur, that we pay
the compressor fuel use assessment ("under protest") to stop interest accruals on the use tax assessment. We believe the sales tax assessment is at best -weak- and therefore do not recommend any payment.

We're requesting approval to cut a check to the Colorado Dept of Revenue for $356,736.95.  
This payment would be a deferred expense until the protest is fully resolved.


 -----Original Message-----
From: 	Rittgers, Dan  
Sent:	Wednesday, February 06, 2002 4:40 PM
To:	Saunders, James
Cc:	Chandler, Bob; Zahn, Gary; Russo, Gavin
Subject:	Transwestern Pipeline Payment Under Protest (Confirmed PAYMENT BY MAIL ONLY   -  $356,736.95)

Thank you for your time today.  I have confirmed that the payment under protest amount is $356,736.95 calculated as follows:

Transwestern Pipeline - Colorado Sales & Use Tax				
Payment Under Protest - Compressor Fuel				
For Period September 1996 to July 2001				
				
	Consumer Use	County Sales	Total	
Normal Tax	 $      185,626.00 	 $      109,037.00 	 $      294,663.00 	
Normal Interest	          54,594.76 	          28,181.67 	 $        82,776.43 	
	 $      240,220.76 	 $      137,218.67 	 $      377,439.43 	
Less 1/2 discount	         (13,669.15)	           (7,033.33)	         (20,702.48)	
Payment Due	 $ 226,551.61 	 $ 130,185.34 	 $ 356,736.95 	
				
Confirmed 2/06/2002 with D. Malonson at (303) 866-3083				

Check Reference Description should include: 

	Colorado Notice Number 0240300178948
	Colorado Account: L 80-30571-000   (Compressor Fuel)

We would like to include check number in our transmittal, when known.

We do not have to pay the $1.2 Million for the purchase of the Compressor Station.

Dan Rittgers
(713) 853-5734
james.saunders@enron.com, tracy.geaccone@enron.com