Dave 


The weather group should show this P/L today


---------------------- Forwarded by John J Lavorato/Corp/Enron on 05/23/2000 
12:12 PM ---------------------------


Mark Tawney@ECT
05/23/2000 11:52 AM
To: John J Lavorato/Corp/Enron@Enron, Jere C Overdyke/HOU/ECT@ECT
cc:  

Subject: Palladium Funds

B of A paid on our LC draw last Friday in the amount of $16,104,205.00.  The 
amounts have been applied as follows:

*  $9,707,500  clears the exisitng receivable (trades which settled March 31, 
2000).

*  Accrued interest in the amount of $41,705 was booked to the G/L.  (DR A/R  
CR Interest Income).

*  The remaining $6,395,000 represents the termination value of the current 
trades.  That amount has been handled as follows:

Currently on Schedule C -  $4,297,058 
Unpaid Premium -              ($1,205,000)
Net Schedule C -                  $3,092,058

Termination Value -             $6,395,000
Net Schedule C -                 -$3,092,058
Total P&L      $3,302,942

Realized P&L -                    $2,302,942
Schedule C Retention -      $1,000,000

We can realize the additional income on Schedule C at anytime.   

If you have any questions, please give me a call.  I am in London on the 
Weather Desk (Cell: 44-788-134-1771) until Friday