tw sale hedge unsubscribed firm tw currently negotiations handful shippers regarding 3 blocks unsubscribed firm capacity block one volume 27 500 mmbtu term 1 year 01 01 02 thru 12 31 02 receipt san juan ignacio blanco delivery california border exceed 13 500 mmbtu needles price floating difference ngi socal iferc epng san juan award criteria adjustment floating price block two volume 49 000 mmbtu term 1 year 01 01 03 thru 12 31 03 receipt san juan ignacio blanco delivery california border exceed 35 000 mmbtu needles price floating difference ngi socal iferc epng san juan award criteria adjustment floating price block three volume 11 000 mmbtu term 2 years 01 01 02 thru 12 31 03 receipt san juan ignacio blanco delivery east thoreau price floating difference ngi socal iferc epng san juan award criteria adjustment floating price mismatch delivery point pricing location attempt capture spread value however early discussions shippers indicates structure may marketable may ultimately revert selling san juan eot basis transwestern attempted impose deadline consideration blocks friday jan 5 order bring closure however parties able comply providing proposals monday acceptable offer one blocks blocks one two particular received monday addition preparation physical gas transportation contract hedging strategy lock spread value implemented spoken dave neubauer others larry morgan vernon theresa regarding execution appropriate risk management strategy particular spoke morgan hedging basis risk executing fixed floating price swaps receipt delivery ends already talked potential shippers using ngi socal california border iferc epng san juan receipts indices appear liquid respect trading paper also highly correlated physical prices receipt delivery locations transwestern physical transport deals completed monday believe move execute derivative instruments hedge basis spread indications counterparties earlier week showing 1 40 spread 02 0 90 03 however given current state gas market consulting steve harris also believe leave price risk open fuel collection contracts seems imprudent point lock fuel gas prices historically high levels attempted least tee requisite paperwork document physical transaction hedge transaction attempted hedge strategy included use hedge indeed put pending transactions please feel free modify make changes see necessary washington c monday tuesday cell phone checking messages also call questions