tw bullets 2 / 9 capacity marketing - we negotiated an extension of the 400 , 000 mmbtu / d
east - to - east contract with aquila / usgt this week plus improved the
economics of their existing contract . the extension , beginning november
2001 , has a reservation rate of $ . 025 / mmbtu with a 30 % sharing of the permian
to cal border index spreads on all alternate westward flow . as for their
existing contract , we negotiated a $ . 15 / mmbtu rate effective february 15 -
october 31 , 2001 on the alternate west flow , an improvement of $ . 11 / mmbtu .
in addition , we negotiated a similar east deal with alternate west flow with
astra power llc . their reservation rate is $ . 0325 / mmbtu on a volume of
50 , 000 / d for a term of march 2001 through march 2003 .
with the execution of these two deals plus the anticipated closing of the
public service of new mexico contract , this will effectively sell out the
east end of the tw system through at least 2002 .
san juan flow conditioner - the decision was made this week to postpone till
march the application of the exxon / nalco flow conditioner in the san juan
lateral . had we proceeded with the application in february ( a tariff month ) ,
the minimum lost revenue impact for one day could have been $ 300 , 000 .
southwest gas - we received the fully executed oba contract from southwest
gas this week .
gas inventory - with moderating temperatures out west reducing demand and
shippers paying gas back to tw , we were experiencing high linepack for most
of the week . tw was able to sell 55 , 000 mmbtu at the border for a net
revenue of $ 453 , 000 .
reliant - we negotiated a san juan pool contract for 20 , 000 mmbtu / d at max
rates for february 6 - 28 . reliant is flowing alternate out of path from san
juan to the border and scheduling 5 , 000 to 12 , 000 mmbtu / d . incremental
revenue for this could range from $ 42 , 000 to $ 100 , 000 for the month .