Neumin Production - REVISED POSITIONS

---------------------- Forwarded by Eric Boyt/Corp/Enron on 03/19/2001 02:05
PM ---------------------------
From: Jason R Williams/ENRON@enronXgate on 03/19/2001 12:17 PM
To: James Ledlow/ENRON@enronXgate, Bradford Larson/ENRON@enronXgate, Lynn
Bellinghausen/ENRON@enronXgate, Becky Caudle/ENRON@enronXgate, Tanya
Rohauer/ENRON@enronXgate, Eric Boyt/Corp/Enron@Enron
cc:

Subject: Neumin Production - REVISED POSITIONS

Neumin Team -

As you know, I have been trying to sort out a problem that we have regarding
trade N52632 with Neumin Production. The issue surrounded the expiration
dates of the various legs of this trade, with confusion about whether those
legs were to expire in December '01 or December '02.

At the present, it is the general consensus of the Confirms/Origination teams
that the legs in question (legs 2 & 4) should expire at the end of December
'01. I say "general consensus" because we have no clear, concrete evidence
that this expiration is correct. Our own internal systems show a lot of
conflicting indications, so the long and the short of this "investigation" is
that we are relying on the memories of our originators to verify the terms of
the deal.

So, attached is the Neumin position spreadsheet, with updated terms for legs
2 and 4. I have also added a sheet that shows Neumin's production profile,
based on the reserve report of 1/1/01. Included on this sheet is a "Net
Overhedge" calculation which shows the amount of hedged production above
projected production (as of 1/1/01).

Please let me know if you have any questions.

Jay