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- Subject: king ranch
- i just spoke briefly with brian riley , who is working to restructure the knig
- ranch contracts with exxon , and put coastal into the loop . yesterday i
- forwarded each of you an e - mail from steve van hooser which had drafts of
- contracts attached . as i talked with brian , the king ranch set up as he is
- negotiating will be simplified . the intent , as i understood it , is that we
- will no longer buy at the wellhead . rather , coastal is entering into a a
- gathering agreement with hpl to buy at the wellhead and ship to the plant .
- hplc will buy at the tailgate of the plant , net of pvr . so there will not be
- future settlements with exxon on liquids . the paper has not been returned
- from coastal or exxon yet , but the deal is effective 4 / 1 / 00 . everything will
- be under new agreements , with receipts and deliveries by different
- counterparties . the gas flow continues the same , just under new contracts
- and different counterparties .
- daren , pat and stella : daren , brian said he would get with you to discuss
- the deal in further detail . please include pat and stella in the discussion
- also . the contracts should be reviewed and understood to ensure proper
- scheduling . as i mentioned to greg sharp and brian , it is critical that we
- be kept in the loop , especially on retroactive deals , as scheduling ,
- transport rates and risk are affected .
- thanks to everyone for ensuring the communication lines are in place .
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