New EOL Product - Crude Oil Financial

Tana/Karen:

The product long description below will fall under the new product type US=
=20
Crude Basis Swap. Credit (Tom Moran) has approved copying the profiles for=
=20
the new product type from the following:

US WTI Fin Swap

Please respond by 10 a.m. on Wednesday, November 8.

Thank you.
---------------------- Forwarded by Lisa Lees/HOU/ECT on 11/07/2000 02:04 P=
M=20
---------------------------

Robert B Cass
10/31/2000 05:13 PM
To: Matthew Adams/Corp/Enron@ENRON
cc: Richard Schneider/Enron Communications@Enron Communications, Tom=20
Moran/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Jeff Blumenthal/HOU/ECT@ECT,=20
Stephen H Douglas/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Rudi=20
Zipter/HOU/ECT@ECT, Lisa Lees/HOU/ECT@ECT, Jennifer deBoisblanc=20
Denny/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Da=
wn=20
C Kenne/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT, Mark Friedman/HOU/ECT@ECT=
,=20
Melba Lozano/HOU/ECT@ECT=20
Subject: New EOL Product - Crude Oil Financial

Hi Matt- =20

SIGMA FACTOR REQUEST:
Commercial has requested the following new Crude Oil Financial product type=
=20
on EOL. The product type is similar to a gas basis link product type excep=
t=20
that the commodity is Crude. (Platt's Indices will apply for the fixed an=
d=20
float pricing) :

New Product TypeCommodity: =20
Product Type: US Crude Fin Basis Swap
Commodity: Crude Oil
Currency: USD
Default UOM: Barrels
Country: USA

Financial Description (e.g):
A US Crude financial Swap Transaction with Enron North America Corp., under=
=20
which either (A) for the case in which Counterparty submits an offer to buy=
=20
from Enron, Counterparty shall pay the Fixed Price and shall receive the=20
Floating Price, each in respect of the Notional Quantity per Determination=
=20
Period; or (B) for the case in which Counterparty submits an offer to sell =
to=20
Enron, Counterparty shall receive the Fixed Price and shall pay the Floatin=
g=20
Price, each in respect of the Notional Quantity per Determination Period.=
=20
Each calendar month during the term of the Transaction will be a=20
Determination Period. The Notional Quantity per Determination Period is the=
=20
volume submitted by the Counterparty via the website. The Payment Date(s)=
=20
will be 5 business days after both the Fixed Price and the Floating Price a=
re=20
determinable. The Floating Price shall be the average of the Index for each=
=20
day in the relevant Determination Period.

The term of the Transaction shall be from the Effective Date to the=20
Termination Date. The Effective Date is 01 Jan 2001. The Termination Date i=
s=20
31 Dec 2001.

(Note: The following 3 indices will be applicable)
(Light Louisiana Sweet)
The Fixed Price for a Determination Period shall be the mean of the daily=
=20
first line quotations for WTI/(MONTH) under the heading "U.S. $/Bbl" in the=
=20
Crude Price Assessments section of Platt=01,s Oilgram Price Report for thos=
e=20
issues published for the applicable Calculation Period, modified by the pri=
ce=20
submitted by the Counterparty on the website. The Index for a day shall be=
=20
the mean of the daily quotations for LLS under the heading "U.S. $/Bbl" in=
=20
the Crude Price assessments section of Platt=01,s Oilgram Price Report for =
those=20
issues published for the applicable Calculation Period.=20

(West Texas Sour)
The Fixed Price for a Determination Period shall be the mean of the daily=
=20
first line quotations for WTI/(MONTH) under the heading "U.S. $/Bbl" in the=
=20
Crude Price Assessments section of Platt=01,s Oilgram Price Report for thos=
e=20
issues published for the applicable Calculation Period, modified by the pri=
ce=20
submitted by the Counterparty on the website. The Index for a day shall be=
=20
the mean of the daily quotations for WTS under the heading "U.S. $/Bbl" in=
=20
the Crude Price assessments section of Platt=01,s Oilgram Price Report for =
those=20
issues published for the applicable Calculation Period.

(Midland Sweet.) =20
The Fixed Price for a Determination Period shall be the mean of the daily=
=20
first line quotations for WTI/(MONTH) under the heading "U.S. $/Bbl" in the=
=20
Crude Price Assessments section of Platt=01,s Oilgram Price Report for thos=
e=20
issues published for the applicable Calculation Period, modified by the pri=
ce=20
submitted by the Counterparty on the website. The Index for a day shall be=
=20
the mean of the daily quotations for WTI Midland under the heading "U.S.=20
$/Bbl" in the Crude Price assessments section of Platt=01,s Oilgram Price R=
eport=20
for those issues published for the applicable Calculation Period.

The price is quoted in US Dollars per unit of volume, which will be the=20
Contractual Currency.
The unit of measure against which the price is quoted shall be Barrels per=
=20
month and the quantity shown shall be in Barrels per month.