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----- Forwarded by Jeffrey A Shankman/HOU/ECT on 02/21/2001 12:33 PM -----

	Raul Rizo-Patron
	02/20/2001 07:21 PM
		 
		 To: Jeffrey A Shankman/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT
		 cc: 
		 Subject: Project Ice - DCF Assumptions

Below are the primary DCF assumptions:

1.  WACC = 11%

2.  EBIT from existing business was calculated as an average of 1999 and 2000 
with certain adjustments.  Growth rate is 4% per annum.

3.  Financial trading earnings estimates as per John Nowlan are as follows 
(urea and ammonia only):  
Yr 1 - $0.5MM
Yr 2 - $2.5MM
Yr 3 - $5.0MM
Yr 4 - $7.8MM
Yr 5 and future - $10.3MM per year

4.  Origination earnings estimates as per John Nowlan are as follows (all 
products):
Yr 1 - $5MM
Yr 2 - $10MM
Yr 3 - $20MM
Yr 4 - $25MM
Yr 5 - $30MM
Future - $5MM incremental earnings every year

5.  Working capital requirements continue to grow at the same pace (ie. no 
efficiency in working capital assumed).

6.  $2MM of capex every three years for capital improvements (in addition to 
annual maintenance items that are expensed on the Income Statement.)

Raul