GAS DEAL w/Oregon Steel Mills

---------------------- Forwarded by Jason Williams/HOU/ECT on 12/11/2000
01:19 PM ---------------------------

Tracy Ngo
12/11/2000 01:10 PM
To: Jason Williams/HOU/ECT@ECT
cc: Veronica Espinoza/Corp/Enron@ENRON, Russell Diamond/HOU/ECT@ECT
Subject: GAS DEAL w/Oregon Steel Mills

Gas team,

Dave Fuller in West Origination is trying to get the credit requirements for
the following 3 year gas financial deal:

Term: 01/01/2001 thru 12/31/2003
Volumes: 7,500MMBtu/day
ENA pays float (Sumas Inside Ferc)
CP pays fixed ($$$$???)

Since I need to get the fixed price for this deal, hypothectically though,
the cp is a "credit upfront" customer. Assuming prevailing market prices,
what would your estimated Letter of Credit be for the deal above? I've sent
a cws to legal for a draft ISDA.

Quick response appreciated. Please let me know if you need more info to swag
this L/C. I would assume that we need lots of cushion should the market tank.

Tracy