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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bruce L who wrote (30717)	3/11/2004 11:41:59 AM
From: Bruce L	Respond to of 206084

The EIA number is -28 bcf tonto.eia.doe.gov

To: Bruce L who wrote (30717)	3/11/2004 11:47:25 AM
From: jim_p	Read Replies (3) \| Respond to of 206084

"Western Energy Settlement: EP funded the settlement with stock, not cash." No cash??? Let's see, 1. El Paso will make cash payments of $78.6 million that will be deposited into escrow for the benefit of the parties to the Master Settlement Agreement subsequent to the signing of the definitive agreements. 2. El Paso will pay $45 million in cash per year over a 20-year period rather than deliver natural gas as originally contemplated. This arrangement does not change El Paso’s economic obligations under the settlement, permits El Paso to use its entire portfolio of gas reserves as a possible source of funding for the payments, and eliminates the obligations associated with delivery of natural gas over the period. The substitution of cash for delivered gas also provides El Paso with the flexibility to prepay its obligations if it is economically advantageous to do so. Upon final approval of the Master Settlement Agreement, El Paso will be required to provide collateral for this obligation in the form of oil and gas reserves, other assets (to be agreed upon) or cash and letters of credit. The initial collateral requirement will be between $455 million and $600 million depending on the nature of the collateral provided; 3. El Paso will reduce its prices under two power supply contracts with the California Department of Water Resources by a total of $125 million, pro rated on a monthly basis for the remainder of the term of the contracts. The difference between the current prices and the reduced prices will be placed into escrow for the benefit of the settling parties on a monthly basis as deliveries are made under those contracts until final approval of the Master Settlement Agreement. At that time, the actual prices for delivered power will be reduced; and 4. El Paso Merchant Energy, a subsidiary of El Paso Corporation, will make the $45-million per year payments and will deliver power under the power supply agreements at reduced prices. 5. El Paso will retire the 20-year obligation to pay $22 million per year in cash by depositing $250 million into escrow for the benefit of the settling parties within 180 days of the signing of the definitive agreements. This prepayment eliminates any collateral that might have been required on the $22-million per year payment over the next 20 years. Sounds like a lot of cash to me?? elpaso.com Jim