Total's Master Swap Agreement

Has legal received a credit worksheet on this counterparty? Please give me=
a=20
call (or John!). Thanks. SS
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 08/10/99 03:=
48=20
PM ---------------------------
From: "John J Shoobridge/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL on=
=20
08/10/99 08:21 PM
To: Sara Shackleton@ECT
cc: Rodolfo Freyre AT ENRON_DEVELOPMENT@CCMAIL, Federico Cerisoli AT=20
ENRON_DEVELOPMENT@CCMAIL, "Gabriela Aguilar/ENRON_DEVELOPMENT" AT=20
ENRON_DEVELOPMENT@CCMAIL=20
Subject: Total's Master Swap Agreement

Sara:

Can you give me an update on this deal. The customer is calling and need to=
=20
let him know where are we standing on legal side of the business.

Regards
---------------------- Forwarded by John J Shoobridge/ENRON_DEVELOPMENT on
08/10/99 04:18 PM ---------------------------

John J Shoobridge
08/05/99 07:20 PM

To: Patricia Cini@ENRON_DEVELOPMENT, Sara Shackleton@ENRON_DEVELOPMENT cc=
: =20
Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico
Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela=20
Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Don=20
Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rodolfo
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Total's Master Swap Agreement

Pat,

I have faxed to you the financial statements of Total Austral S.A..

We are potentially entering into a MSA with this customer. The first=20
transaction we are thinking about is a financial Swap to hedge their=20
Propane-Butane production in Ca=0Fadon Alfa according to the following deta=
ils:

1. Swap Prices Prices
|------------------------+------------------------+------------------------=
|
| SWAP (cents/ gallon) - | 1 year | 6 months =
|
| Bid | | =
|
|------------------------+------------------------+------------------------=
|
| Propane | 35 3/4 | 38 3/4 =
|
|------------------------+------------------------+------------------------=
|
| Butane | 40 3/4 | 43 1/2 =
|
|------------------------+------------------------+------------------------=
|

2. Put Option
|--------------+--------------+--------------+--------------+--------------=
|
| Put Option | 1 year - | 1 year - | 6 months - | 6 months - =
|
|(cents/gallon)| Premium | Strike | Premium | Strike =
|
|--------------+--------------+--------------+--------------+--------------=
|
| Propane | 2.5 | 32 3/4 | 2 | 35 3/4 =
|
|--------------+--------------+--------------+--------------+--------------=
|
| Butane | 3.0 | 37 3/4 | 2 3/8 | 42 =
|
|--------------+--------------+--------------+--------------+--------------=
|

Propane
Volume: 45.000 metric tons.
Starting date: Nov 1
Butane:
Volume: 19.000 metric tons.
Starting date: Nov 1

Sara: Would you please start drafting an MSA with Total Austral S.A.? Pleas=
e=20
let me know if you need any aditional information.

Regards

John Shoobridge