Re: DSM 5261

Kate,

A request (below) has been made to fix a deal that was entered by Tom and
Mark incorrectly (through the option exercise function in deal blotter). The
deal numbers and legs that need to be fixed are listed below. Instead of
being a forward transaction, these legs should be entered as index forwards.
We are paying the DJ PV index plus $5 or 5%, whichever is more. Therefore,
if daily prices were more than $100 at palo verde, the offset should be 1.05.

I know that i have totally confused you but let me know of any questions you
might have and I will be glad to help.

Thanks,

Kim
---------------------- Forwarded by Kim Ward/HOU/ECT on 11/15/2000 09:31 AM
---------------------------

Enron Capital & Trade Resources Corp.

From: Katrina_Johnson@enron.com 11/14/2000 02:03 PM

To: Kim.ward@enron.com
cc:
Subject: Re: DSM 5261

Kim,

The message listed below was previously forwarded to Caroline. Per
Caroline, I would need to talk to the actual Trader. Please let me know if
you can help me resolve this issue.
Please call me at ext. 3-6488 if you have any questions.

Thanks,
Katrina

Katrina Johnson
11/14/2000 03:02 PM

To: Caroline Emmert/HOU/ECT@ECT
cc:
Subject: DSM 5261

Caroline,

Deal #420886 legs 3-7 have no price attached to the deal. Would you please
add the DJPV index plus an offset of 5%. On legs 2 & 8 the offset needs to
be changed from $5.00 to 5%.

Please let me know if you have any questions.

Thank You,
Katrina