Kim,  Stewart and I met with Tom Lee (tomlee@ncpa.com; 916.761.4220) of NCPA yesterday.
NCPA is looking to restructure a power deal with Calpine and a gas basis deal with Pan Canadian.
The following summarizes the gas transaction and the re-structuring as proposed by Tom.
Current Gas Structure  Term:  		January 1, 2002 - December 31, 2002 Quantity:	5,000 MMBtu/d Delivery Pt.
:	PG&E City-Gate Price:		NYMEX + $3.37/MMBtu  Re-Structuring Option 1  Extend the term through 2004.
What is the blended basis?
Re-Structuring Option 2  (Kim, please note that the following structure is Tom Lee's creation).
ENA assumes NCPA's position for Q2 2002 only (April-June):  5,000 MMBtu/d @ PG&E City-Gate @ NYMEX + $3.37/MMBtu.
ENA buys 3 puts from NCPA involving 5,000 MMBtu/d @ PG&E City-Gate over a 3 year term ending 2004:  a)  Exercisable on Dec 15, 2001, ENA has the option to put 5,000 MMBtu/d to NCPA in Q1, Q3 and/or Q4 of 2002. b)  Exercisable on Dec 15, 2002, ENA has the option to put 5,000 MMBtu/d to NCPA in Q1, Q2, Q3 and/or Q4 of 2003. c)  Exercisable on Dec 15, 2003, ENA has the option to put 5,000 MMBtu/d to NCPA in Q1, Q2, Q3 and/or Q4 of 2004.
What is the strike price?
Re-Structuring Option 3  (Kim, this is my idea.
That is, I think this makes more sense than Tom's).
ENA assumes NCPA's position for Q2 2002 only (April-June):  5,000 MMBtu/d @ PG&E City-Gate @ NYMEX + $3.37/MMBtu.
ENA sells NCPA 5,000 MMBtu/d of gas at PG&E City-gate for calendar years 2002 through 2004 except for Q2 2002.
Given that we are absorbing the $3.37/MMBtu basis for Q2 2002, what is the all-in fixed price for this sale?
Tom is looking for an answer ASAP.
Is the above confusing enough?
Call me if we need to talk about this.
Laird

NCPA Gas Restructuring
Kim, Stewart and I met with Tom Lee (<EMAIL> <PHONE>) of NCPA yesterday.
NCPA is looking to restructure a power deal with Calpine and a gas basis deal with Pan Canadian.
The following summarizes the gas transaction and the re-structuring as proposed by Tom.
Current Gas Structure Term: January <NUMBER>, <NUMBER> - December <NUMBER>, <NUMBER> Quantity: <NUMBER> MMBtu/d Delivery Pt.
: PG&E City-Gate Price: NYMEX + <CUR><NUMBER>/MMBtu Re-Structuring Option <NUMBER> Extend the term through <NUMBER>.
What is the blended basis?
Re-Structuring Option <NUMBER> (Kim, please note that the following structure is Tom Lee's creation).
<COMPANY> assumes NCPA's position for Q0 <NUMBER> only (April-June): <NUMBER> MMBtu/d @ PG&E City-Gate @ NYMEX + <CUR><NUMBER>/MMBtu.
<COMPANY> buys <NUMBER> puts from NCPA involving <NUMBER> MMBtu/d @ PG&E City-Gate over a <NUMBER> year term ending <NUMBER>: a) Exercisable on Dec <NUMBER>, <NUMBER>, <COMPANY> has the option to put <NUMBER> MMBtu/d to NCPA in Q0, Q0 and/or Q0 of <NUMBER>. b) Exercisable on Dec <NUMBER>, <NUMBER>, <COMPANY> has the option to put <NUMBER> MMBtu/d to NCPA in Q0, Q0, Q0 and/or Q0 of <NUMBER>. c) Exercisable on Dec <NUMBER>, <NUMBER>, <COMPANY> has the option to put <NUMBER> MMBtu/d to NCPA in Q0, Q0, Q0 and/or Q0 of <NUMBER>.
What is the strike price?
Re-Structuring Option <NUMBER> (Kim, this is my idea.
That is, I think this makes more sense than Tom's).
<COMPANY> assumes NCPA's position for Q0 <NUMBER> only (April-June): <NUMBER> MMBtu/d @ PG&E City-Gate @ NYMEX + <CUR><NUMBER>/MMBtu.
<COMPANY> sells NCPA <NUMBER> MMBtu/d of gas at PG&E City-gate for calendar years <NUMBER> through <NUMBER> except for Q0 <NUMBER>.
Given that we are absorbing the <CUR><NUMBER>/MMBtu basis for Q0 <NUMBER>, what is the all-in fixed price for this sale?
Tom is looking for an answer ASAP.
Is the above confusing enough?
Call me if we need to talk about this.
Laird
deal calpine number given absorbing email phone pan canadian gate calendar years following summarizes kim stewart met ncpa looking restructure tom current gas assumes