There is a master agreement in place between ECT and Koch Energy Trading, 
Inc.  I have never heard of Koch Carbon.  My immediate concern is as to the 
Enron entity.  It is not clear to me why Peter thinks this trade is between 
ECT and a Koch entity since he does not have authority to bind ECT.  




Alan B Aronowitz
12/01/98 07:34 PM
To: Paul Simons/LON/ECT@ECT
cc: Mark - ECT Legal Taylor/HOU/ECT@ECT, Scott Sefton/LON/ECT@ECT, Yao 
Apasu/HOU/ECT@ECT 
Subject: Deal 8025

Paul:

Please call me tomorrow morning Houston time to discuss our preparing a 
confirmation and other relevant documentation for this petroleum coke-based 
financial swap transaction with Koch Carbon, Inc. I understand you (and Yao) 
had worked on a similarly structured coal-based swap a few months ago.

Mark: Do we have a financial master with any Koch affiliates?

Alan
---------------------- Forwarded by Alan B Aronowitz/HOU/ECT on 12/01/98 
06:58 PM ---------------------------


Brian Spector
12/01/98 11:20 AM
To: Alan B Aronowitz/HOU/ECT@ECT
cc: Daniel Reck/HOU/ECT@ECT 
Subject: Deal 8025


---------------------- Forwarded by Brian Spector/HOU/ECT on 12/01/98 11:19 
AM ---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  PETER SCEATS <SCEATS@tfs-ln.co.uk>                           12/01/98 
11:13 AM
	

To: Brian Spector/HOU/ECT, "'Mark Luetters @ Koch Petcoke'" 
<luetterm@kochind.com>
cc:  
Subject: Deal 8025





Here follows the draft confirm for deal no. 8025.  Subject to hearing from
you otherwise we intend to send you both the hard copy first thing tomorrow.



PETCOKE SWAP CONFIRM

To     :  Enron Capital & Trade Resources Corp.
   1400 Smith Street
   Houston TX 77002-7361
Attn   : Brian Spector
Phone   : 713 853 4276
Fax    : 713 646 2492

To     : Koch Carbon Inc
   4111 East 37th Street North
   Wichita Kansas 67220
Attn    : Mark Luetters
Phone   : 316 828 4412
Fax    : 316 828 7946

Date   : 1st December 1998

The following deal has been transacted for the above parties' account and
risk by TFS Energy (acting as brokers without the responsibility for
defaults by other parties) and is subject to credit and counterparty
approval.

TFS Deal No. : 8025

Trade Date  : 1st December1998


Fixed Price Leg

Seller    :  Enron Capital & Trade Resources Corp

Buyer    :  Koch Carbon Inc

Benchmark
Commodity : High Sulphur Green Coke FOB Gulf Coast Above 50 HGI per
Pace Petroleum Coke Quarterly.

Duration   : 1st December 1998 thru 28th February 1999
inclusive

Quantity   : 5,000 tons per month, 15,000 tons in total

Price   : $ 4.15  per ton fixed and flat

Floating Price Leg

Seller   :  Koch Carbon Inc

Buyer              :  Enron Capital & Trade Resources Corp

Pricing : The price of the floating leg of the agreement shall be the
monthly average of High Sulphur Green Coke FOB Gulf Coast Above 50 HGI
appearing in Pace Petroleum Coke Quarterly's Green and Calcined Petroleum
Coke Price table.

Settlement : Monthly. Settlement is due no more than three working days
after the price index for each relevant month becomes available.

Profit & Loss
Limitation  : A collar is placed on the deal at $1.00 either side of the
fixed price such that the total cash payment/receipt cannot exceed $15,000.


Regulation : This contract is governed in accordance with US law.

Other and
Additional Terms : To be agreed between the counterparties.

Commission  : 0.03 cents per ton charged to both sides.

Broker : Peter Sceats, Manager Coal Dept.
 TFS Energy
    East India House
    109/117 Middlesex Street
    London E1 7JF
    Phone  44 171 375 3780
    Fax  44 171 422 9439
    Mobile   44 378 863 036