Teresa G. Bushman
Enron North America Corp.
1400 Smith Street, EB 3835A
Houston, TX  77002
(713) 853-7895
fax (713) 646-3393
teresa.g.bushman@enron.com


----- Forwarded by Teresa G Bushman/HOU/ECT on 05/24/2001 05:10 PM -----

	Marshall Eubank/ENRON@enronXgate
	05/24/2001 05:06 PM
		 
		 To: Marshall Eubank/ENRON@enronXgate, C John Thompson/ENRON@enronXgate, Joan 
Quick/ENRON@enronXgate, Tricia Spence/ENRON@enronXgate, Avinash 
Jain/ENRON@enronXgate, Brian Otis/ENRON@enronXgate, Shirley A 
Hudler/ENRON@enronXgate, Tim Proffitt/ENRON@enronXgate, Teresa G 
Bushman/HOU/ECT@ECT
		 cc: 
		 Subject: RE: KCS II Hedge

$26.30 / Bbl 

 -----Original Message-----
From:  Eubank, Marshall  
Sent: Thursday, May 24, 2001 4:56 PM
To: Thompson, C. John; Quick, Joan; Spence, Tricia; Jain, Avinash; Otis, 
Brian; Hudler, Shirley A.; Proffitt, Tim; Bushman, Teresa
Subject: KCS II Hedge


KCS hedged 2 years of production beginning June 01 - May 03 for the proposed 
VPP.

The price was $4.255/MMBTU on 4,974,364 MMbtus and $26.00/Bbl on 70,164 
barrels of oil (to be confirmed)

Fred LaGrasta's deal with credit and KCS is:

(1) ENA has the right to unwind if VPP does not close on or before June 15th 
and if gain, 25% of the gain to ENA, pursuant to ECR term sheet
(2) if legal renders existing netting agreement invalid, then KCS will have 
to post margin if prices move up and KCS payable to ENA exceeds $250M.

Marshall