Subject: pastoria update
not done - but good progress :
we reached agreement with the water bank late last night on the definitive agreement . the members of the bank are going to their respective boards today and tomorrow and are saying that they are prepared to sign tomorrow . they have flaked on us in the past , so there is still a decent chance we dont get done soon , but in general we are pleased that they moved so quickly during the past week .
calpine started being difficult yesterday re the timing of closing , water ( they now want the azurix agreement with a guarantee ) and taking the gas transport . we played hardball - told them azurix is out and that we dont need the transport . the outcome of that position is that we will not assign our transport to them and we will opt out of our transport precedent agreement . calpine indicated that they have their own transport and if we dont close , they would assign us 50 mmcf / day . i am not sure if this is their final answer but it is clearly better than them having a put back to us for 100 mmcf / day .
i suspect this will change - some for the bettter , some for the worse , but i will keep you posted .
chris