Basis and Index Roll-Off

---------------------- Forwarded by Darron C Giron/HOU/ECT on 09/27/2000
03:20 PM ---------------------------

Enron North America Corp.

From: Jeffrey C Gossett 09/27/2000 07:47 AM

To: Jennifer Bagwell/NA/Enron@ENRON, Anne Bike/Corp/Enron@Enron, Chris
Walker/HOU/ECT@ECT, Jason Wolfe/NA/Enron@ENRON, Dawn C Kenne/HOU/ECT@ECT,
Darron C Giron/HOU/ECT@ECT
cc:
Subject: Basis and Index Roll-Off

---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 09/27/2000
07:45 AM ---------------------------

Enron North America Corp.

From: Jeffrey C Gossett 09/27/2000 07:44 AM

To: David Baumbach/HOU/ECT@ECT, Kyle Etter/HOU/ECT@ECT, William
Kelly/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT, Dutch Quigley/HOU/ECT@ECT
cc:
Subject: Basis and Index Roll-Off

Again this month, you are going to have to calculate your basis positions
(officialize) twice. Once for the TDS download, and once for the Benchmark
for V@R. For the TDS calc, all (100% ) basis needs to show up for prompt
month. For the V@R calculations we will need to roll 50% of basis off
tonight, and 50% tommorrow. I would recommend that you use two different
post ID's to do this. That way you can use your 100% calc for your curve
shift report and it will reflect any change in prompt month index as curve
shift and not a change deal. We will need two calcs until indexes are set.
Just to be clear, calc your 100% basis calc first. Officialize. Load your
positions into TDS. Unofficialize. Calc your 50% basis calc. Officialize.
Run all reports off of the 100% basis calc.

Also, we will roll-off 50% of all index positions (Gas Daily and Physical)
tonight and roll-in 50% of physical and gas daily index. And the other 50%
tommorrow.

Let me know if you have any questions.

Thanks,

Jeff