Wanted to give you a heads up to these flexible physical deals that might 
involve your desks via EOL in the near future. We already have one in the 
East.  I stressed to the Sitara/EOL folks the importance of adding comments 
to the term sections of these baseload and term tickets so we know what is 
happening.  One side of these buy/sell or exchange deals will be ratable and 
the corresponding partner ticket will have the optionality.Comments will 
include the corresponding deal number, that it is in fact a buy/sell or 
exchange deal and the delivery time period(3,5 or 10 days) that the 
counterparty desires.
I hope this helps...THANKS!


---------------------- Forwarded by Victor Lamadrid/HOU/ECT on 06/27/2000 
02:51 PM ---------------------------
   
	
	
	From:  Thomas Engel                           06/26/2000 11:49 AM
	

To: Linda S Bryan/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Larry Joe 
Hunter/HOU/ECT@ECT, Dale Neuner/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT
cc: Bob Bowen/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT 
Subject: Flexible Physical US Nat Gas Products on EnronOnline


Can you all meet this afternoon or tomorrow to discuss this. 
Call me 3-1488.

---------------------- Forwarded by Thomas Engel/HOU/ECT on 06/26/2000 11:42 
AM ---------------------------
   
	
	
	From:  Scott Mills                           06/23/2000 09:51 AM
	

To: Thomas Engel/HOU/ECT@ECT, Linda S Bryan/HOU/ECT@ECT, Karen 
Lambert/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT
cc:  
Subject: Flexible Physical US Nat Gas Products on EnronOnline

Got any ideas on how this transaction should look.  This looks like a monthly 
volume that would be further refined to daily on the expected volumes once 
the counterparty has made their decision  (I would imagine logistics will be 
the one communicating with the counterparty).  We probably need EOL to 
indicate whether it is a 3, 5, 10 day delivery cycle and then indicate this 
as comments.

Linda/Karen -what are your thoughts on how separate GTC would work on this.

If we could all do a little homework.  I will get something scheduled for 
next week to discuss further.

SRM (x33548)
---------------------- Forwarded by Scott Mills/HOU/ECT on 06/23/2000 09:37 
AM ---------------------------
Dale Neuner   06/23/2000 08:40 AM

To: David Forster/Corp/Enron@Enron, Sheri Thomas/HOU/ECT@ECT, Scott 
Mills/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Debbie 
R Brackett/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Stacy E Dickson/HOU/ECT@ECT, 
Jeffrey T Hodge/HOU/ECT@ECT, Jeff Blumenthal/HOU/ECT@ECT, Stephen H 
Douglas/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Imelda Frayre/HOU/ECT@ECT, 
Larrissa Sharma/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Frank L 
Davis/HOU/ECT@ECT, Melba Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT, 
Jefferson D Sorenson/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Larry Joe 
Hunter/HOU/ECT@ECT, Jennifer Blay/HOU/ECT@ECT
cc: Scott Hendrickson/HOU/ECT@ECT 
Subject: Flexible Physical US Nat Gas Products on EnronOnline

We are positioning ourselves to release a new Product Type that we will refer 
to as a Flexible Physical Gas product. Legal is in the process of drafting a 
GTC and Product Type description that will be used with this Product Type. I 
will start the building process once Legal provides the GTC and Product Type 
description; but in the interim, here's a broadstroke description of how the 
transaction works:

Party A and Party B exchange gas during the month of June 2000.

Party A buys 10,000 MMBtu per day (or 300,000 total MMBtu) at TCO Pool Index

Party B has the right to notify Party A of when Party B wants to take 
delivery during the month of June, and may take delivery in one of three 
forms: 3-day delivery, 5-day delivery, or 10-day delivery. The gas nominated 
for each such day would be a percentage of the total 300,000 MMBtu (i.e.; If 
Party B chooses 5 days for nomination, Party A would deliver 20% of the 
300,000 MMBtu on each of those 5 days for a total nom of 100%).  Party B pay 
TCO Pool Index PLUS a premium.

I understand that this type of transaction is currently done 
over-the-counter. Scott Mills has previously issued an explanatory e-mail of 
Sitara concerns and we should begin to address those issues.

Bjorn - if you could ask someone to prepare a Sigma Factor in advance, then 
my turn around time to for the Product Type should be reduced. Also, due to 
the varying 'optionality', do you think these three different products will 
require three different Product Types?

Please feel free to call if you have any questions.

Dale
3-9746
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