Joe, I think the counterparty's point is correct.  Per our discussion, it is 
unlikely that the price would be described as both a "settlement price" and 
be expressed as a high and low price, so I think the suggested revision 
language in your 9/12/00 e-mail to Sara would be better.  I would just insert 
one phrase in the final sentence for clarity:

"In the event that Monomers Market Report publishes both a high and low price 
[for "CG Propylene Contract"] then the Floating Price shall be the arithmetic 
average of such high and low prices." [my insertion bracketed and in bold]

feel free to call w/ any comments or questions -- Bob


Robert E. Bruce
Senior Counsel
Enron North America Corp.
T (713) 345-7780
F (713) 646-3393
robert.bruce@enron.com



	Larry Joe Hunter@ECT
	09/19/2000 09:37 AM
		 
		 To: Robert Bruce/NA/Enron@Enron
		 cc: 
		 Subject: Re: Shell Chemical - Index language


---------------------- Forwarded by Larry Joe Hunter/HOU/ECT on 09/19/2000 
09:36 AM ---------------------------
To: Larry Joe Hunter/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Kevin Meredith/Corp/Enron@ENRON 
Subject: Re: Shell Chemical - Index language  

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