Mark -- Thanks very much for this information.

 -----Original Message-----
From: 	Breese, Mark  
Sent:	Monday, May 14, 2001 9:44 AM
To:	Fairley, David
Cc:	McMichael, Ed; Weldon, V Charles
Subject:	Oil Status UPdate -- response to your questions

			

I spoke with Doug Leach regarding your questions.  He has already contacted 4-5 suppliers/truckers and is ready to rock and roll when we know what spec. of No. 2 we need.  As such, they are all set to supply our requirement.  Doug reiterated his interest in looking at the long-term relationship we may want to build with a supplier.  He is particularly concerned if the plant switches to oil for a significant amount, supplying large quantities will be a logistical nightmare.  


He agrees that we can hedge 80-90 (if not 100%) of the commodity risk by buying the Gulf Coast contract (there is no basis traded for FL).  However, his market view is for prices to come off (they have already dropped a bit) as a result of gasoline prices cooling off.

He has scheduled the test for Vandium today.  We should get results in the next several days.