one suggestion on the last sentence.

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

thanks, lee


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

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

Sara,

We have a Counterparty with a request to adjust our Floating Price language 
for Propylene so that a couple of things will be specified.  
1) the published rate is currently one price only.  They do not specify a 
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. 
Therefore, this Counterparty wishes to see that language included. 

Current:
The Floating Price for each Calculation Period shall be the arithmetic 
average of the high and low price of Propylene - chemical grade in 
Cents/Pound published under the headings &North America Product Prices for 
the applicable month: CG Propylene Contract8 in the month-end issue of 
Chemical Market Associates, Inc.,s Monomers Market Report for the applicable 
Calculation Period

Suggested
The Floating Price for each Calculation Period shall be the settlement price 
for the applicable Calculation Period of Propylene - chemical grade in 
Cents/Pound published under the headings &North America Product Prices for 
the applicable month: CG Propylene Contract8 in the month-end issue of 
Chemical Market Associates, Inc.,s Monomers Market Report for the applicable 
Calculation Period.  In the event that Monomers Market Report publishes both 
a high and low price then the Floating Price shall be the arithmetic average 
of such high and low prices.

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

Thanks,
Joe