NUI

Since NUI Utilites, Inc. is the rated entity, we are no longer requiring the
$50MM NUI Corp gty for this transaction. However, the financial swap (which
should be 40,000/day total for May-Oct) is being documented under the NUI
Energy Brokers, Inc. existing ISDA. Sara has modified to cross default the
confirmation to the Credit Agreement. Stacy, please share the language you
are using for the Transaciton Agreement to compensate for the Credit
Agreement expiry in December with Sara so the financial confirmation can be
modified as well. We also need to modify the financial confirmation to state
that for this transaction only, NUI must be the Guarantor not NUI Capital.
Then we must get a deal specific gty from NUI Utilites to cover this trade -
probably $10MM. This all arises because the finc/phys gty we were working on
is out the window since NUI Utilities is the rated entity with associated
balance sheet and the NUI Corp is not needed. Please advise asap and call
with any questions.

Thanks,
Tanya