Re: Shell Chemical - Index language

Joe, I think the counterparty's point is correct. Per our discussion, it i=
s=20
unlikely that the price would be described as both a "settlement price" and=
=20
be expressed as a high and low price, so I think the suggested revision=20
language in your 9/12/00 e-mail to Sara would be better. I would just inse=
rt=20
one phrase in the final sentence for clarity:

"In the event that Monomers Market Report publishes both a high and low pri=
ce=20
[for "CG Propylene Contract"] then the Floating Price shall be the arithmet=
ic=20
average of such high and low prices." [my insertion bracketed and in bold]

feel free to call w/ any comments or questions -- Bob

Robert E. Bruce
Senior Counsel
Enron North America Corp.
T (713) 345-7780
F (713) 646-3393
robert.bruce@enron.com

=09Larry Joe Hunter@ECT
=0909/19/2000 09:37 AM
=09=09=20
=09=09 To: Robert Bruce/NA/Enron@Enron
=09=09 cc:=20
=09=09 Subject: Re: Shell Chemical - Index language

---------------------- Forwarded by Larry Joe Hunter/HOU/ECT on 09/19/2000=
=20
09:36 AM ---------------------------
To: Larry Joe Hunter/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Kevin Meredith/Corp/Enron@ENRON=20
Subject: Re: Shell Chemical - Index language =20

one suggestion on the last sentence.

"In the event that the settlement price published by the Monomers Market=20
Report includes both a high and low price then the Floating Price shall be=
=20
the arithmetic average of such high and low prices."

thanks, lee

=20
=09
=09
=09From: Larry Joe Hunter 09/12/2000 06:42 PM
=09

To: Sara Shackleton/HOU/ECT@ECT
cc: Kevin Meredith/Corp/Enron@ENRON, Lee Jackson/HOU/ECT@ECT=20
Subject: Shell Chemical - Index language

Sara,

We have a Counterparty with a request to adjust our Floating Price language=
=20
for Propylene so that a couple of things will be specified. =20
1) the published rate is currently one price only. They do not specify a=
=20
high and low (But it is possible that a high and low do get published)
2) the publication calls the price "settlement" price in the description.=
=20
Therefore, this Counterparty wishes to see that language included.=20

Current:
The Floating Price for each Calculation Period shall be the arithmetic=20
average of the high and low price of Propylene - chemical grade in=20
Cents/Pound published under the headings =01&North America Product Prices f=
or=20
the applicable month: CG Propylene Contract=018 in the month-end issue of=
=20
Chemical Market Associates, Inc.=01,s Monomers Market Report for the applic=
able=20
Calculation Period

Suggested
The Floating Price for each Calculation Period shall be the settlement pric=
e=20
for the applicable Calculation Period of Propylene - chemical grade in=20
Cents/Pound published under the headings =01&North America Product Prices f=
or=20
the applicable month: CG Propylene Contract=018 in the month-end issue of=
=20
Chemical Market Associates, Inc.=01,s Monomers Market Report for the applic=
able=20
Calculation Period. In the event that Monomers Market Report publishes bot=
h=20
a high and low price then the Floating Price shall be the arithmetic averag=
e=20
of such high and low prices.

Give me a call in the morning and I'll get you a copy of the CMAI publicati=
on.

Thanks,
Joe