Michael Petroleum - Payment Date(s)

have we ever agreed to this (charge interest for different Payment Dates)
for early payments (i.e., earlier than our usual 5 days after the Floating
Price is determinable)? SS
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 07/27/99 03:32
PM ---------------------------

Melba Lozano
07/27/99 03:02 PM
To: Sara Shackleton/HOU/ECT@ECT
cc: Dale Neuner/HOU/ECT@ECT
Subject: Michael Petroleum - Payment Date(s)

Sara,

Attached is a draft of the language that needs to be placed in all Michael
Petroleum deals. Janelle agreed with the counterparty that they will settle
on the last day of the calendar month instead of our usual 5th Business Day.
She is charging 6.5 % annual interest on payments they make to us for the
days beyond the 5th Business Day.

I__________________________________________________________________I
(5th B.D.) 6.5% interest
..............................................................................
.... (last B.D.)

Please let me know as soon as you can if this is ok. to put in the
confirmations. Call me if you need me to go up there.

THANK YOU SOOO MUCH!

Melba