This the direction I would like to steer Ft. James.

Lets discuss on Monday.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 03/03/2000 
10:08 AM ---------------------------


Bob Crane
03/02/2000 05:17 PM
To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Free stuff we want

Dave,

We would like to have two put swaptions with the following parameters

1. Enron sells 50,000 tons/year financially
 RISI NBSK US index (pulp)
 June 2000-May 2005
 Fixed price of 675 US$/ton
 Until 1 May 2000 Enron the right to put the above to FJ

2. Enron sells 50,000 tons/year financially
 PPW 42# east average (linerboard) 
 July 2000-May 2008
 Fixed price of 450 US$/ton
 Until 1 May 2000 Enron has the right to put the above to FJ

Either of the above would make us 10mm over where we are able to sell the 
swaps out now.  Either trade would be immediately cash flow positive upon 
execution - so I expect FJ shouldn't grimace too much.  If both Skeena and 
Re-Box were to blow up we wouldn't exercize on the linerboard option buy may 
be able to make 4 or 5 million on the pulp option.  We don't have any other 
"pretty" deals that would enable us to recoup 10mm.  If possible I would 
suggest you get them to look at the above and before any commitment to the 
swaption is made we should have a better idea of the status of each project.

Bob