KCS Value of 3% Transfer to Barclay's

Attached is the valuation of the 3% of the MMBTU hedges that we will be selling. The valuation is done to the Nymex mid-curves as of the 6/21 close. The value is currently $1,013,345 (Cell E27, Sheet Inputs-Summary). Per our conversations, the total hedged MMBTU's were less than 100% of the physical VPP volumes due to the contractual payoff formulas associated with those propertites. Hence, the 3% we calculated will be somewhat less than 3% of the actual physical volumes depending on the size of those contracts which were not 100% price-based.

Please let me know if you have any questions.

Thanks,

Charlie