JMC Gas Marketing

hello everyone,

A little while back Carol St. Clair, myself, and Susan Flynn worked up credit
language that was included within the confirmation of a trade done with this
customer. In that credit language, a collateral threshold was not included
on purpose. Instead, we only required that a $25M Letter of Credit be
provided as a condition of the trade.

We eventually came to receive the letter of credit and all was well. But on
Friday, the customer did another trade, against the advice of credit. They
have agreed to now take a credit line in all confirmations. Therefore,
please provide language to the confirm desk that would require the customer,
should exposures any termination payment amount ever exceed $20M, to post
additional or amend existing collateral by the collateral multiple.

Thanks,
brant