RE: Ready for your approval

Looks good thanks

-----Original Message-----
From: =09Renaud, Lindsay =20
Sent:=09Friday, September 28, 2001 9:06 AM
To:=09May, Larry
Subject:=09Ready for your approval
Importance:=09High

Larry,

I just wanted to check with you whether this looks okay. As long as you are=
satisfied with this updated long description we are ready to make the chan=
ges in the system. Let me know what you think.

US Gas Daily Opt GD/D HHub - IF HHub ES

A financial Option Transaction with Enron North America Corp., under which =
the Seller receives the Premium and the Buyer receives the Cash Settlement =
Amount. Each calendar day during the Term of the Transaction will be a Dete=
rmination Period. The Notional Quantity per Determination Period shall be t=
he volume submitted by Counterparty on the website in accordance with the u=
nit of measure. The Premium shall equal the product of (i) the price submit=
ted by Counterparty via the website, multiplied by (ii) the number of calen=
dar days during the Term of the Transaction, multiplied by (iii) the volume=
submitted by Counterparty on the website. The Payment Date for the Premium=
shall be 2 business days after the Trade Date of the Transaction. The Paym=
ent Date(s) for the Cash Settlement Amount shall be 5 business days after t=
he last Determination Period with respect to each calendar month for those =
Determination Periods occurring during such calendar month. Where this Tran=
saction is a Call Option, the Cash Settlement Amount shall be the sum of th=
e product of (a) the Notional Quantity per Determination Period, multiplied=
by (b) the greater of (i) zero, or (ii) the Index minus the Strike Price. =
Where this Transaction is a Put Option, the Cash Settlement Amount shall be=
the sum of the product of (a) the Notional Quantity per Determination Peri=
od, multiplied by (b) the greater of (i) zero, or (ii) the Strike Price min=
us the Index. Where this Transaction is a Straddle Option, the Cash Settlem=
ent Amount shall be the sum of the product of (a) the Notional Quantity per=
Determination Period, multiplied by (b) the absolute difference between th=
e Strike Price and the Index. The term of the Transaction shall correspond =
to the date(s) set forth in the Product description on the Website. The Ind=
ex for a calendar day shall be the Daily Midpoint price published for such =
calendar day under the heading "Daily Price Survey" in the Louisiana -Onsho=
re South - Henry Hub section of Gas Daily. The Strike Price for each Deter=
mination period during each calendar month during the term shall be the Sou=
th Louisiana - Henry Hub Index price in the "Market Center Spot-Gas Prices"=
section located in the first issue of Inside Ferc's Gas Market Report publ=
ished for such calendar month.
The price is quoted in US Dollars per unit of volume, which will be the Con=
tractual Currency.
The unit of measure against which the price is quoted shall be millions of =
British thermal units and the quantity shown shall be in millions of BTUs p=
er day.
The Option Style is European, and the Option Type is a Straddle (the simult=
aneous buy or sale of Calls and Puts at the specified Strike Price).
=09Automatic Exercise is Applicable.

Thanks,
Lindsay

Lindsay Renaud
EnronOnline
(713) 345-3703