Wendy,

I did not receive your mail. Please, resend it to Stinson Gibner and myself.
I shall be out next week but Stinson will be able to help you.

Vince


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 07/14/2000 
03:35 PM ---------------------------


Vince J Kaminski
06/28/2000 05:03 PM
To: Wendy King/Corp/Enron@ENRON
cc: Stinson Gibner/HOU/ECT@ECT, Paulo Issler/HOU/ECT@ECT, Zimin 
Lu/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT 
Subject: Re: Backwardation hedge strategy  

Wendy,

Thanks. I  look forward to  receiving a package from you.

Vince





Wendy King@ENRON
06/27/2000 04:37 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc: James A Ajello/HOU/ECT@ECT, Tim Battaglia/NA/Enron@Enron 
Subject: Backwardation hedge strategy

Vince,

I am sending via internal mail samples of a hedge strategy that may offer 
opportunity to store commodities in a backwardated market.  I would like your 
opinion as to if this strategy works, and if it is practical (ie cost of 
hedges and complexity of execution/ monitoring is reasonable).  If you think 
there is value, or have other ideas along the same lines....we are very much 
need of such a risk and inventory management tool for several deals we are 
originating.

We seek a cost effective method to manage backwardation while storing large 
quantities of petroleum products for 3-5 year deals.  The inventory stored in 
tank will turn over, but continuous, large,  minimum operating balances are 
required (1 million barrels of gasoline and 2 million barrels of crude oil).

Thanks for your assistance,

If there is any question, please do not hesitate to call.  I will be on 
vacation from June 29th pm - July 11th. In my absence, please contact Tim 
Battaglia.

Wendy King