Re: TGS ISDA

See Pat's message below. You may want to check with her. Sara
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 10/26/99 12:20
PM ---------------------------

Enron North America Corp.

From: Patricia Cini 10/25/99 09:45 AM

To: Sara Shackleton/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT
cc:
Subject: Re: TGS ISDA

FYI-

---------------------- Forwarded by Patricia Cini/HOU/ECT on 10/25/99 09:45
AM ---------------------------
Rodolfo Freyre @ ENRON_DEVELOPMENT 10/25/99 09:41 AM

To: Patricia Cini/HOU/ECT@ECT@ENRON
cc: Jeff Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: TGS ISDA

Pat -

We sent them indicative pricing last Friday. Still waiting to see if they
like our pricing. I still do not know what volume scenario they want to go
for, but as we see it, they will want to transact starting next Monday. We
will keep you posted on any update.

Regarding the ISDA, I told them we can agree to sign it without the CSA,
though we would need to maintain the other provisions. I am still waiting for
TGS's reply.

Rolo

To: Rodolfo Freyre@Enron
cc: Jeff Kabel@Enron

Subject: TGS ISDA

Rolo-

Are we going to transact with TGS by the end of the month? Let me know what
the status is with TGS.

Regards,

Pat

---------------------- Forwarded by Patricia Cini/HOU/ECT on 10/25/99 08:53
AM ---------------------------

Enron North America Corp.

From: Patricia Cini 10/20/99 04:57 PM

To: Susan Bailey/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Rodolfo Freyre@Enron, Jeff Kabel@Enron,
William S Bradford/HOU/ECT@ECT
Subject: TGS ISDA

Susan-

Attached is the revised credit worksheet for TGS removing the CSA. Given
that we will probably not have the ISDA executed by the time Argentina
transacts with TGS (by the end of the month), we will need to confirm the
deal including a Deemed ISDA per Sara's suggestions.

I advised Argentina that we were making no other changes to our format other
than removing the CSA since this seems to be the major issue for TGS.
However, we may want to hold off on sending the 2nd draft until commercial
has a chance to advise TGS of our position. I want to make sure that the CSA
is really the only hurdle for them before we send the revised draft down. I
will advise when I have heard back from Argentina on their further
discussions with the counterparty regarding the ISDA.

Let's discuss if any questions.

Regards,

Pat

---------------------- Forwarded by Patricia Cini/HOU/ECT on 10/20/99 04:47
PM ---------------------------

Enron North America Corp.

From: Patricia Cini 10/19/99 06:12 PM

To: Rodolfo Freyre@Enron
cc: Jeff Kabel@Enron, Federico Cerisoli@Enron, William S
Bradford/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT
Subject: TGS ISDA

Rolo-

We can agree to sign the Master ISDA without the CSA. However, we will be
maintaining the BBB- MAC trigger, 3rd Party Event of Default at $15MM, and
the Change in Ownership provision. I do not want to agree to any of their
changes other than removing the CSA.

Please call me in the morning concerning the 2,500 ton/month LPG transaction
regarding how we will want to confirm this deal.

Regards,

Pat