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Once considered the most complex solution, we are now driven by the commercial imperative, the "bottom-line," to provide a cost-effective, value-added product at the lowest cost to our customers. Consequently, a comprehensive solution for processing, gathering, measuring, and reporting will be delivered as a multi-module product. This "bottom-line" focus drives the following objectives for the Gas Gathering Solution: Provide flexibility to our customers The Gas Gathering Solution, under development by Enron Global E&P, is an off-the-shelf product that can be tailored to the needs of each customer. This ability to customize will e enable Enron customers to lower their cost-base by procuring only the functionality needed. Provide scalability to our customers The Gas Gathering Solution has a modular design and is being built using off-the-shelf components to ensure scalability. The Gas Gathering Solution will also enable our customers to add capacity to their current gas gathering systems or replace antiquated systems without breaking the bank. Provide for a standard, scalable, easily identifiable product The Gas Gathering Solution is designed for standardization and interoperability with each successive release adding incremental value to the system. The resulting product will be unique to our customers, yet able to meet the needs of multiple customers. We will deliver this solution through a multi-phase implementation with initial deliveries in January, February, and March of 2001. We believe this to be a superior solution in which you do not have to invest large sums of money to realize significant value. We are currently in negotiations with several customers for the release dates of the first modules of the Gas Gathering Solution. Summary of the Solution Module Capacity 1 Supply: 4 Billion Cubic Feet Per Day 2 Pipelines: 10,000 MMCFD 3 Measurement: 4,000 MMCFD 4 Aggregation: 8,000 MMCFD 5 Storage: 4 Billion Cubic Feet Capacity Each module of the Gas Gathering Solution provides a critical, incremental function, but when combined the modules provide a standardized, "best in class" product that can provide significant value to Enron customers. For instance, the Supply Module collects, aggregates, and measures all natural gas production, including "non-gathering" production, in order to allocate the production based on a customer-specific plan. The Gas Measurement Module validates the gas volumes that were used to provide customers with cost-based pricing. The Pipeline Module manages the physical transport of "gathering" production and "non-gathering" production. Finally, the Aggregation Module provides the ability to process volumes from multiple pipelines, the storage and measurement functions. As development of the Gas Gathering Solution progresses, it will be critical that we are able to identify opportunities to bring incremental value to our customers. E-Request Process Please direct any comments or questions to your appropriate Enron representative, Jim Irvine, President and CEO of Enron Global E&P or Gordon Longley, Vice President, New Business Development. Regards, John Jacobs (See attached file: 0111005 Jacobs - Gas Gathering.ppt) ______________________________________________________________________________ _______ Category: Utility Title: Regulatory Sent: Tuesday, November 21, 2000 3:19 PM Subject: Regulatory Information - GAS/RUI-0001 Click on the URL to view the document in the online version: (See attached file: 2-270160G.txt) - 2-270160G.txt