suncor inc extension services arrangement awesome original message milnthorp rob sent wednesday october 03 2001 9 02 lavorato john cc le dain eric subject fw suncor inc extension services arrangement john please see attached 2 2 extending strategic alliances pcog keohane peter subject suncor inc extension services arrangement rob yesterday finalized negotiations suncor extension services agreement suncor sunoco management executive vp level approved term general rates execution letter agreement extension expected formality wait execution agreement nevertheless prior booking origination deal 1 term 3 years january 1 2002 december 31 2004 2 services per todays services parts suncor sunoco business including retail initiative respect retail initiative provide services retail company volumes 230 mmcfd provide services today current sales 130 mmcfd 230 mmcfd negotiate additional rate 3 price yr 1 475 000 cdn yr 2 487 000 cdn yr 3 499 000 cdn 4 suncor gets 70 000 cdn discount applied remainder year fees three months october november december 2001 total base fee 187 500 cdn cut 117 500 cdn 4 agreement enron canada prepare letter agreement capturing extension terms similar petro canada 5 incentive arrangement suncor putting place new general mgr position manage overall energy risks suncor group committed wait person place negotiate appropriate incentive arrangement since provided value suncor consuming businesses years e p little appropriate restructure incentive capture value added parts business enron costs provide services 168 444 cdn per year cost includes accounting operations staff allocation rent infrastructure five years operating experience providing services therefore comfortable cost allocation case petro canada renewal allocation houston costs insignificant per transaction basis compared base business include commercial staff costs covered origination deal flow made approximately 1 5 2 0 mm cdn year including year deal flow suncor sunoco alliance years relationship mtm income transaction 830 000 cdn approximately 530 000 us allocate amongst grant oh origination large transaction follow deal flow potential based past experience significant petro canada marquee client renewing services additional term us five year initial term powerful marketing tool company vis vis quality services commercial support renewal great credit operations accounting commercial staff issues raised years respect services provided areas passed audits performed suncor also reflects well hard work transaction portfolio ideas grant oh nicole laporte commercial side barry tycholiz jason biever easy deal get done particular three year commitment recall year ago odds getting done probably 10 key worked maintained relationships five layers individual suncor sunoco businesses provided high level service peter would please prepare letter agreement week transaction along lines pcog extension letter stop discuss thanks