Merced - Settlement of Natural Gas Swap

Could you talk to Jeff About this?

Thanks.

Stewart

---------------------- Forwarded by Stewart Rosman/HOU/ECT on 03/01/2001
03:06 PM ---------------------------

Enron Capital & Trade Resources Corp.

From: Jeff Fuller <JFuller@prmllp.com< 03/01/2001
01:01 PM

To: "'Stewart Rosman'" <Stewart.Rosman@enron.com<
cc:
Subject: Merced - Settlement of Natural Gas Swap

Stewart - what is industry standard for settling natural gas swaps based
upon "first of month" index prices? From the confirmation letter, it looks
like we will settle 5 days after the index is known. For example, March
we'd settle March by March 9th or 12th assuming the index is published on
March 5. Is this right? Just want to confirm since this is obviously
different than when we settle things in the electric utility industry.

Jeff