Vonda, 

These are the changes that Enron Legal would like you to consider.  Please review and let me know if these changes are acceptable. These changes would be be inserted and would replace the sections under Demand Charge, Transaction Default Price, Reference Price and Flexible Pricing.

I know.......let me know what you think. 

Thanks


Demand Charge for Physical Call Option

Buyer shall pay Seller $0.03 per MMBtu multiplied by the FMDQ, plus fuel, multiplied by the number of days in the Month of Delivery.

Daily Pricing for Physical for Physical Call Option  

Daily Pricing means the "Daily Midpoint" price set forth in Gas Daily
 Platts, a division of The McGraw-Hill Companies, or successor publication, in the column "Daily Price Survey" under the listing applicable to the geographic location closest in proximity to the Delivery Point(s) for the relevant gas day.  If there is no single "Daily Midpoint" price published for that particular Gas Day, but there is published a "Common" range of prices under the above column and listing, then the Spot Price shall be the average of such "Common" high and low prices.  In the event that no 'Daily Midpoint" price or "Common" range of prices is published for that particular Gas Day, then the Spot Price shall be the average of the following: the price (determined as stated above) for each of the first Gas Day immediately preceding and following the Gas Day in which the default occurred for which a Spot Price can be determined.

FLEXIBLE PRICING: During the Period of Delivery for a Transaction, Customer may request a price other than the original Contract Price, being a Fixed Price or (each below defined) by contacting Company during Pricing Hours requesting any such price for a specified quantity of Gas to be Scheduled during selected Months within the Period of Delivery; provided, such request must be made prior to 12:00 noon C.T. of the last Business Day prior to the last trading Day of the NYMEX Gas futures contract for the selected Month.  A Confirmation may be sent by Company to Customer confirming the Flexible Pricing agreement in accordance with Exhibit "A" "Fixed Price" means a fixed dollar amount agreed to by the Parties.  The price for all Gas for which a Flexible Price has not been agreed by the Parties shall be the original Contract Price applicable to the Transaction.  "Notwithstanding anything to the contrary contained in this Confirmation or the GTC, upon Customer's acceptance of Fixed Price, Customer shall keep whole and hold Company harmless for all cost and expenses incurred by Company with respect to the quantity of Gas that is converted into a Fixed Price, in the event that such quantity of Gas is not Scheduled by Customer for any reasons, including without limitation events of Force Majeure.