Subject: canadian outsourcing deals
good summary of canadian process .
once george , bob and i meet , i will give the group and update .
thansk
bob
- - - - - - - - - - - - - - - - - - - - - - forwarded by bob m hall / na / enron on 04 / 02 / 2001 03 : 47
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : george f smith @ ect 04 / 02 / 2001 02 : 34 pm
to : robert superty / hou / ect @ ect , bob m hall / na / enron @ enron
cc :
subject : canadian outsourcing deals
i met with peggy hedstrom and to some extent with laura scott in calgary
regarding how they handle the day to day activity of their producer
outsourcing deals .
the producer provides to ec their projected production schedule for the year
by month by plant outlet . this information is entered into sitara by ec on a
single ticket with no meter information . for the prompt month ec confirms
back to the producer their expected production volumes by point by day . this
includes any maintenance or scheduled down time that would affect their daily
flows . this information is contained within a excel spreadsheet which can be
viewed by the producer via a common network drive .
the producer communicates to ec their sales for the month and on a daily
basis . ec enters these trades in sitara . the sitara position by producer is
balanced to zero daily . the producer does not have access to sitara .
ec acts as agent for the downstream transportation owned by producer . they
have no diversion rights on this transport , it is utilised at the direction
of the producer . ec nominates producers transport . all transport expense
estimates are maintained by ec . ec is invoiced and pays the pipeline .
ec monitors estimated hourly flows from the plant outlets as provided by
nova . it is the responsibility of ec to inform the producer of significant
variances in their scheduled versus estimated flows . nova requires that
shippers be balanced on a daily basis or face penalties if variances are out
of tolerance . it is ec ' s responsibility to keep the producer out of penalty
situations . the producer , at the direction of ec , either sells or buys on an
intraday basis to balance their position on the pipeline . final estimated
flows are then downloaded by ec into the excel spreadsheet . this final
estimate is than used as the expected volume for the upcoming day . and
sitara is updated accordingly .
at months end the spreadsheet information is transferred to an accounting
system referred to as solomon . actual volumes as provided by the pipeline are
also entered into the system for settlement . i didn ' t have a lot of time to
devote to the accounting process , but i doubt ena would take this approach .
ec utilises a single point of contact with each producer from a logistics and
origination standpoint . peggy said they did not hire people specifically from
the producer / customers but did seek out people with extensive producer
experience to assist with these customers . peggy feels that their success is
due in a large part to the very strong relationships they have developed with
their customers through this point of contact approach .
it is of note that unify is not utilised in managing these customers
business . peggy feels that unify is not designed to handle it and response
time is too slow for their purposes given the time constraints they are
working under on a daily basis .