John:

Bank of Montreal would like to take Enron up on the offer you made this
afternoon to help balance our short swap exposure with your organization and
replace it with a third party Enron may have offsetting transactions with.
Per our conversation, to offset the contracts that we are short to Enron,
our position would allow us to accommodate the following transactions:

Buying five and a half (5.5) contracts a day December 2001 (Z01) natural gas
last day swaps from Enron and selling to a third party
Buying sixteen and a half (16.5) contracts a day January 2002 through
December 2002 (F02-Z02) natural gas last day swaps from Enron and selling to
a third party
Buying four (4) contracts a day April 2003 through October 2003 (J03-V03)
natural gas last day swaps from Enron and selling to a third party
Buying two (2) contracts a day January 2004 through December 2008 (F04-Z08)
natural gas last day swaps from Enron and selling to a third party

If you find an appropriate offsetting positions please contact me at
212-605-1475.

Thank you,

David DeVeny
Bank of Montreal
Commodity Derivatives Group




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