Mid and Back Office Discussion

Paul,

Thanks for lunch a few weeks ago. Sounds like you have a ton of work and
responsibility these days.

Also, thanks for working with Gros on CommodityLogic. It is a great
application that I think will help our industry better manage the ever
increasing transaction flow.

In addition to CommodityLogic, and as a follow-up to our lunch, I would like
to come over in a few weeks and sit down and show you and your team what we
mean by "outsourcing" your mid and back office functions to our
"ProsessCo/ServiceCo." I think we have identified what types of services we
could offer and under what type of arrangements. Basically, you have risk
reporting, general ledger, deal capture, confirmation,
nominations/scheduling, volume management and settlements (invoice and cash
payments/collections). We will articulate how it works and how it hopefully
makes sense for you to let us add a few more resources to accomodate your
growing business instead of you building it from scratch.

I also talked to Whalley and Bibi about your concerns on security/neutrality,
comparable service levels to Enron, term and the ability to do financial
easier than physical. We can go through all that as well.

I will contact you soon and arrange a time.

Let me know your thoughts.

Piper

PS Let's do another dinner with McGowan, etc. soon (or play golf some time
or catch some beers).