Re: About to trade Weather on Thursday

---------------------- Forwarded by Sara Shackleton/HOU/ECT on 04/13/2000
12:05 PM ---------------------------

David Minns@ENRON_DEVELOPMENT
04/12/2000 05:23 PM
To: Sara Shackleton@ECT
cc:
Subject: Re: About to trade Weather on Thursday

---------------------- Forwarded by David Minns/ENRON_DEVELOPMENT on
04/13/2000 09:25 AM ---------------------------

David Minns
04/13/2000 08:50 AM
To: Raymond Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Tawney@ECT, Heidi
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Allan
Ford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: About to trade Weather on Thursday

Raymond can we discuss.

(a) This is definitely a possibility. We could back the trade out to EAF
through an ISDA Agreement we have with RMT (an Enron company based in
Houston).
(b) This is also an alternative from an Australian regulatory perspective.
© Conceptually no reason why not except EAF has no underlying ISDA
Agreement with SG USA. Also I suspect this would be less tax effective than
either one or two.
(d) Another alternative - We have an ISDA Agreement between EAF and SG
Australia Ltd . Could these entities be the contracting parties?

Raymond it is really a tax call as to which is the most effective contracting
structure. I have copies in Susan Musch (our Houston based tax expert). Susan
have you any ideas. I suspect also there will be some Enron management
determinations as to the identity of the Enron entity entering into the
trade.

One other point Raymond if ENA is the contracting party it really is outside
my jurisdiction. I would request Sara Stackleton (who recently assumed took
overe from Shari Shackleton) assist.

Raymond Yeow
04/13/2000 08:24 AM
To: David Minns/ENRON_DEVELOPMENT
cc: Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Tawney@ECT, Heidi
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Allan
Ford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: About to trade Weather on Thursday

Dear David,

We are about to do a weather trade with SocGen or Aquila on Melbourne
temperature
Expected trade date is Thursday - 13 April.
Steven Vu, Head Weather trader in Houston will transact with above thru a
broker in US.

Premium approx 700k AUD.

What is the best way in terms of regulations and tax - assume limits in place
!
Houston is to take a portion of the deal too.

(a) ENA trades with SG USA, then back to back transact between ENA & En Aust ?

(b) ENA trades with SG USA, then gives p&L to En Aust ?
can this P&L be real income or shadow only ?

© En Aust trades with SG Usa ( thru Oz arm of US broker or thru US broker)

or any other suggestions ???

Pls revert :o)
Thx, Raymond
12 April