fw attorney client privledge important needed comments actions response aep louise brian redmond wanted copy preliminary draft response aep noted coordinating updates response also hand deliver hard copy two faxed letters received aep jim coffey x 35346 original message coffey jr jim sent thursday august 16 2001 5 47 pm edison andrew cc lunz lisa baumbach david martin thomas schwieger jim gray barbara n koehler anne c denetsosie troy yanowski tommy j redmond brian subject attorney client privledge important needed comments actions response aep please review information brian redmond respond comments pulling meeting together early next week discuss order revised draft many comments possible ready brian returns next wednesday please also note actions items bullet respond accordingly name noted let know immediately correct person address action item also please respond additonal action items assistance also attached info word doc thanks advance help please call asap questions concern x 35346 1 texas general land office contract 96059967 aep position amount gas valued 0 409 mm land office payment received general land office exchange aep storing gas provided texas general land office land office gas value based 15 gas volumes received general land office periods beginning feb 1 01 ending may 1 01 plus beginning balance priced 1 june 01 hsc price 3 78 aep paid full value gas aep providing storage services general land office b ene position ene incurred costs expenses transporting injecting land office gas recovered ene ene receive pro rata share land office payment portion time march may ene owned hpl satisfied storage obligations land office gas ene calculates amounts owed aep follows calculation land office payment less ii cost transport inject land office gas less iii calculation value storage services provided ene equals iv payment aep ene makes offer attempt settle matter acceptable aep seek claim amounts count basket notional funds cover indemnities set forth p sa c action item find contract works terms payment gas fee david baumbach jim schweiger calculate amounts due ene net amounts working gas true payment david baumbach 2 cannon interests houston contract 96059933 aep position payments received cannon amounts 400 k march 1 2000 525 k march 1 2001 storage services rendered hpl aep receive portion payment based period time aep ene owned hpl calculated follows total payments received cannon 925 k ii portion contract year aep owned hpl 9 12 iii amount due aep 693 k b ene position payments received 2000 services rendered 2000 taken consideration ene agrees aep due portion 2001 payment cannon based period time aep ene owned hpl calculated follows iv total 2001 payments received cannon 525 k v portion contract year aep owned hpl 9 12 vi amount due aep david baumbach c action item verify payment amounts start contract year david baumbach 3 cannon storage contract 96059167 hpl position agreement treated fixed price agreement rather index based agreement fixed price agreement fixed index swap put place respect agreement b ene position fixed price agreement contract pricing already based index hedge transferred c action item tom martin jim schweiger 4 centana storage aep position centana gas storage contract assigned ena hpl centana gas storage contract necessary conduct business hpl ongoing basis manner conducted prior close aep willing purchase gas currently storage august 15 2001 price equal 90 hsc beaumont large packages gas october b ene position contract ena contract transferred hpl terms restructured match hpl provisions sale gas centana storage representations made ferc never discussed agreed commercially scheduled material contract ena contract contract terminated 1 july formal notice given centana extend contract centana storage contract mistakenly assigned aep ene agree sell gas stored contract aep 1 june hsc price amount netted working gas true payment c action items provide duke indemnity attempt enter new contract duke send letter effect edison koehler gray net amount due enron working gas true payment baumbach 2 lloyndell citgo aep position aep currently unaware issue b ene position ene discovered fixed index hedge transferred aep assignment contract ene calculates value hedge 15 august hedge assigned aep ene net amount monies paid aep working gas true payment c action items prepare confirm hedge baumbach 3 gas lift deposits aep position 50 450 customer deposits relating several gas lift sales accurately accounted closing aep require full reimbursement amounts b ene position ene unaware inaccuracies discussion needed ene respond c actions j coffey call aep accounting try understand aep referring coffey 4 specialty sands payment aep position sum 91 000 000 paid specialty sand ene pursuant settlement agreement cover costs repairs reimbursed hpl since hpl incurring costs repairs b ene position money received specialty sands paid aep aep count basket indemnities c actions legal make call whether ask aep claim indemnity basket edison koehler gray 5 isc sap billing aep position unclear b ene position aep owes ene 86 k compensate ene work performed formatting data meet requirements peoplesoft amount netted inventory true payment made aep c action items confirm aep position matter tommy yanowski net inventory true payment jim coffey 6 transport agreements aep position following transportation contracts necessary conduct hpl business suitable alternatives exist hpl willing assign contracts back ene epgt texas pipeline l p 96006479 epgt texas pipeline l p 96041930 gas transmission teco inc 96041723 gas transmission teco inc 96041724 b ene position agreed c action item prepare documentation assignment transport contracts barbara gray 7 services aep position exchange aep purchasing ene gas centana storage field 90 hsc index october aep requests ene reduce fee payable hpl 100 000 second third six month periods term services agreement provide fee reductions applications services longer required aep b ene position aep offer purchase ene gas centana unacceptable ene sees benefit ene reducing pricing provisions service agreement c action items discuss networks coffey yanowski ensure internal agreement pgas row database gregg modeling yanowski 8 payment amounts aep position unclear b ene position aep owes ene 1 2 overstated midtex cash payment southern union promotional fund c action items jim coffey develop ene position matters coffey 12 working gas inventory true aep position aep submitted invoice ene payment b ene position amount due invoice submitted aep must adjusted following ene portion texas land office fee value gas sold aep centana storage value hedge llyondell citgo contract value sap isc payment value payment amounts due ene mid tex southern union promo fund etc c action items jim coffey coordinate preparation response aep invoice coffey 9 calpine guarantee aep position unclear b ene position aep needs replace ene guarantee aep indemnify ene liabilities calpine c action item confirm aep position matter gray koehler edison prepare back back guarantee send aep calpine obligations gray koehler edison 10 guadalupe contract aep position unclear b ene position aep ene need execute back back agreement enron submitted form agreement aep received response yet c action item request aep send comments back back back contract gray koehler edison plan comment execute gray koehler edison original message redmond brian sent thursday august 16 2001 9 53 coffey jr jim subject jim please find draft position paper basis prepare response aep please distribute team martin schwieger gray koehler edison baumbach troy comment well louise k also get louise copy two letters aep send revised draft everyone comments regards brian