Mark,

After leaving your office yesterday I realized that Larry May also requested a change in the index language used for these Options/Straddles. He says that the current language does not accurately reflect how the index is calculated for Daily Options because it uses the word "average". Please see changes below which will apply to all the indexes used for these options/straddles. Let me know if this looks okay to you we would like to get these changes into the system as soon as possible.


Current:
The Index for a Determination Period shall be the average of the Daily Midpoint price published on each calendar day during such Determination Period under the heading "Daily Price Survey" in the Louisiana -Onshore South - Henry Hub section of Gas Daily, or if a calendar day is not a Business Day then the price used shall be the Daily Midpoint price published on the next succeeding Business Day. The Strike Price for a Determination Period shall be the South Louisiana - Henry Hub Index price in the "Market Center Spot-Gas Prices" section located in the first issue of Inside Ferc's Gas Market Report published during such Determination Period.

Proposed:
The Index shall be the Daily Midpoint price published on each calendar day during such Determination Period under the heading "Daily Price Survey" in the Louisiana -Onshore South - Henry Hub section of Gas Daily, or if a calendar day is not a Business Day then the price used shall be the Daily Midpoint price published on the next succeeding Business Day. The Strike Price for a Determination Period shall be the South Louisiana - Henry Hub Index price in the "Market Center Spot-Gas Prices" section located in the first issue of Inside Ferc's Gas Market Report published during such Determination Period.


Thanks,
Lindsay


Lindsay Renaud
EnronOnline
(713) 345-3703