Free stuff we want

This the direction I would like to steer Ft. James.

Lets discuss on Monday.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 03/03/2000
10:08 AM ---------------------------

Bob Crane
03/02/2000 05:17 PM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Free stuff we want

Dave,

We would like to have two put swaptions with the following parameters

1. Enron sells 50,000 tons/year financially
RISI NBSK US index (pulp)
June 2000-May 2005
Fixed price of 675 US$/ton
Until 1 May 2000 Enron the right to put the above to FJ

2. Enron sells 50,000 tons/year financially
PPW 42# east average (linerboard)
July 2000-May 2008
Fixed price of 450 US$/ton
Until 1 May 2000 Enron has the right to put the above to FJ

Either of the above would make us 10mm over where we are able to sell the
swaps out now. Either trade would be immediately cash flow positive upon
execution - so I expect FJ shouldn't grimace too much. If both Skeena and
Re-Box were to blow up we wouldn't exercize on the linerboard option buy may
be able to make 4 or 5 million on the pulp option. We don't have any other
"pretty" deals that would enable us to recoup 10mm. If possible I would
suggest you get them to look at the above and before any commitment to the
swaption is made we should have a better idea of the status of each project.

Bob