Re: ARG Power and Gas

This could be a problem..........................

Dale

---------------------- Forwarded by Dale Neuner/HOU/ECT on 08/29/2000 02:58
PM ---------------------------

Lynn Aven@ENRON
08/29/2000 03:10 PM
To: Dale Neuner/HOU/ECT@ECT@ENRON_DEVELOPMENT
cc: Jeff Blumenthal/HOU/ECT@ECT@ENRON_DEVELOPMENT
Subject: Re: ARG Power and Gas

When the product is added to the EOL menu, only non-Argentine counterparties
should be allowed to trade that product.

Lynn

Dale Neuner @ ECT 08/29/2000 03:06 PM

To: Lynn Aven/NA/Enron@ENRON@ENRON_DEVELOPMENT, Jeff Blumenthal/HOU/ECT@ECT
cc:

Subject: Re: ARG Power and Gas

The reference in the third product description as a 'US Power Transaction' is
an error - has been corrected.

When you say 'The documentation should indicate that only non-Argentine
counterparties will be allowed to enter into this type of transaction.',
what 'documentation' are you referring to?

Dale

Lynn Aven@ENRON
08/29/2000 02:27 PM
To: Jeff Blumenthal/HOU/ECT@ECT, Scott Mills@ECT, Dale
Neuner@ENRON_DEVELOPMENT
cc: Rudi Zipter/HOU/ECT@ECT, Matthew Adams/Corp/Enron@ENRON, Stephen H
Douglas/HOU/ECT@ECT, Bradley Diebner@ENRON_DEVELOPMENT, Rick Hopkinson
Subject: Re: ARG Power and Gas

Jeff:

I have looked at the products that initially will be traded on EOL in
Argentina.

As stated in the summary, the Argentine Power financial swap transaction will
be enterred into by Enron North America Corp. The documentation should
indicate that only non-Argentine counterparties will be allowed to enter into
this type of transaction.

The Argentine Power Physical Firm transaction should be changed to show that
the Enron entity enterring into the transaction will be Enron
Comercializadora Energia Argentina. The counterparties will be Argentine
companies.

The third category of power contract does not make sense to me. It is
described as a physical trade but is a US transaction. This does not make
sense in light of the business conducted in Argentina. Perhaps you can
provide an explanation of this transaction for me.

The Enron party and the counterparties for the Argentine Gas Physical
transaction is correctly stated in the summary.

Regards

Lynn

Jeff Blumenthal@ECT
08/29/2000 10:12 AM
To: Lynn Aven/NA/Enron@Enron
cc:

Subject: ARG Power and Gas

Lynn,

Thanks for any insight you can provide. Best regards.
---------------------- Forwarded by Jeff Blumenthal/HOU/ECT on 08/29/2000
10:11 AM ---------------------------
Dale Neuner 08/29/2000 08:47 AM

To: Scott Mills/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Matthew
Adams/Corp/Enron@ENRON, Jeff Blumenthal/HOU/ECT@ECT, Stephen H
Douglas/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT
cc: Jennifer deBoisblanc Denny/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Melba
Lozano
Subject: ARG Power and Gas

Scott,

Here are the legal descriptions that we crafted based on information provided
to us by Argentina; they are not in final form b/c they haven't been
signed-off on by Legal.

Things are generally sketchy when they come in from ARG, and the lawyer that
I am working with here in Houston is concerned about he website content.
Additionally, you are right that we should probably expect the number of
Products to build, but at this point, the Product Types are:

ARG Gas Phy Fwd (trading book system set to SITARA); for delivery at
Aldea Brasilera
Bahia Blanca
Buenos Aires
BuenosAires Sur
Centro-Cordoba
CentroCatamarca
Chubut
Cuyana-Mendoza
Cuyana-San Luis
Cuyana-San Juan
GBA (TGN)
GBA (TGS)
Litoral-ProStFe
Litoral-Prov-BA
Neuquen (TGN)
Neuguen (TGS)
Noroeste
Norte-Salta
Norte-Tucuman
Santa Cruz
Tierra delFuego

It is my understanding that these are more delivery zones than they are
delivery points, and each zone has a few meters that gas can be delivered to
with no affect on pricing. We are suggesting to ARG that we use something
like the WAHA language, where Buyer has the right to desinate the meter at
scheduling. I'll keep you up to speed on this as it develops.

ARG Power Financial Swap (trading book system set to SPREADSHEET)
traded on the Index EZE Flat

ARG Power Phy Index
traded on the Index Cam EZE Flat

ARG Power Phy Fwd
for delivery at EZE Flat

This is what we have to date. Please let me know if this is sufficient
information to get you started, or if you need more, I'm glad to help. If you
think access to TEST is the best route, let me or Jenn know and we'll try to
get the ball rolling.

RAC - can you provide Sigma Factors, please.

CREDIT and TAX - for your review and consideration.

Dale
3-9746