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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Mary Cook X-To: Sara Shackleton X-cc: X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_2\Notes Folders\All documents X-Origin: SHACKLETON-S X-FileName: sshackle.nsf Especially item 4. As I had noted previously the payment date issue is arising often in Canada. Cordially, Mary Cook Enron North America Corp. 1400 Smith, 38th Floor, Legal Houston, Texas 77002-7361 (713) 345-7732 (phone) (713) 646-3490 (fax) mary.cook@enron.com ----- Forwarded by Mary Cook/HOU/ECT on 02/08/2001 04:49 PM ----- Peter Keohane Sent by: Sharon Crawford 02/08/2001 03:11 PM To: Peggy Hedstrom/CAL/ECT@ECT, Melinda Whalen/CAL/ECT@ECT, Laura E Scott/CAL/ECT@ECT, Cheryl Dawes/CAL/ECT@ECT, Mary Cook/HOU/ECT@ECT, Russell Diamond/HOU/ECT@ECT cc: Grant Oh/CAL/ECT@ECT Subject: Premstar Energy Canada Ltd. - Financial Transaction Nos. QF3405.1, QG7130.1, NY2665.1 and NY5271.1 Premstar Energy Canada has requested that the Payment Dates for the above noted financial transactions be amended to conform with physical settlement from "The fifth (5th) Business Day following the date on which the Floating Price is determinable" to "The twenty fifth (25th) day of the month following each Determination Period. Should the Payment Date fall on a weekend or statutory holiday, payment shall be made on the next Business Day.". My comments are as follows: 1. Russell, kindly confirm that there is no credit concern with extending the financial payment cycle; 2. Laura/Cheryl, kindly confirm that it is something that we have done in the past for financial transactions; 3. Melinda, assuming that Russell, Laura/Cheryl do not have concerns, please prepare an amendment to each of the Confirmation Letters as requested by Premstar, except that the final sentence of their requested amendment should read: "Should the Payment Date fall on a Saturday or statutory holiday other than a Monday, then payment shall be made on the immediately preceding Business Day, and if the Payment Date is a Sunday or statutory holiday falling on a Monday, then payment shall be made on the immediately following Business Day.". This will make the Payment Dates consistent with physical gas settlement. 4. Melinda, if this amendment is not approved by Russell, Laura or Cheryl, I think that an amendment is nonetheless necessary to the Payment Date, as it is not the fifth (5th) Business Day following the date on which the Floating Price is determinable, but rather the fifth (5th) Business Day of the month following each Determination Period. 5. If possible, Premstar would like the amendment to be effective for the February, 2001 Determination Period. 6. Premstar would also like this provision to extend to any and all future Financial Swap transactions done with them. Mary, is there any amendment required to the ISDA to effect such a permanent amendment, or is this a matter that can be dealt with in each subsequent confirmation letter? Regards, Peter
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