FW: PPL/Griffith Test Gas Sales Agreement ,
 -----Original Message-----
From: 	CoganJA@aol.com@ENRON [mailto:IMCEANOTES-CoganJA+40aol+2Ecom+40ENRON@ENRON.com] 
Sent:	Friday, June 01, 2001 6:51 AM
To:	cfoster@enron.com
Cc:	sbreen@czn.com
Subject:	PPL/Griffith Test Gas Sales Agreement

Chris,

This is to confirm our conversation this morning:

1)  Citizens has entered into a letter agreement that allows for it to sell
gas to PPL during the plant operations testing phase.

2)  Sales will be determined daily with the price being set at some discount
to the border, but in no event to be less than Gas Daily Mid Point San Juan
plus $0.50/MMBtu.  The discount level will have to reflect the we cannot
accept a put of any case back to us.

3)  Enron participation in the deal would be as follows:

    a) Enron would recover the cost of:
        1. Gas cost in the basin priced at Gas Daily Mid Point San Juan
        2.  TW fuel cost, currently approximately 4.75%
        3. Daily demand cost of moving gas down the TW San Juan Lateral
currently           approximately $0.10/MMBtu.
        4. Variable transportation cost on both the TW San Juan Lateral and
        Mainline.
    b) Enron would participate in the gross margins of any sale at 8.5%.
Gross margins would be determined by subtracting        the Enron's cost from
the sales price.

Chris, I hope that this properly reflects our conversation this morning.  If
it does not, please let me know.

As a follow-up item, we really need to complete the gas supply agreement for
the commercial operations and to also cover this arrangement during the
testing phase.  Citizens would appreciate a push on getting this done.  I
know that there may still be the issue with the operations agreement, but we
should be able to get a draft out that would reflect the deal assuming
concurrence on the operating agreement.

Best regards,

John Cogan
For Citizens
s..ward@enron.com