Here is what we think the problems related to Jan close are:

Problem #1:  when we killed all forward PGL deals in TAGG for the inventory transfer, we killed Jan activity even though most of this gas flowed.

Solution #1:  We added Jan activity back into the book and removed only the portion of gas that did not flow.  Total Jan activity was $7.2 million for NSS 2  and we added $5 million back into the book for the gas that actually flowed.


Problem #2:  We add erroneously added back Nov and Dec liquidations into Jan for NSS1.  These liquidations basically represent the inventory balance for NSS 1.

Solution #2:  We have killed the annuity to add back the liquidations.  This will create a $13 million loss for Jan.  The offsetting value was booked when we booked the inventory sell to PGL on 1/18/02.

We hope the above transactions will correct Jan P&L and the month-to-date P&L will represent a more reasonable amount.  This should close out all of the EMW activity.

Call me if anyone has any questions.

Richard

312.541.1231


 -----Original Message-----
From: 	Kennedy, Phyllis R.  
Sent:	Monday, February 04, 2002 10:51 AM
To:	Tomaski, Richard
Subject:	RE: 

Attached is the file.  Let me know if you have any questions.

Thanks!

 

 -----Original Message-----
From: 	Tomaski, Richard  
Sent:	Monday, February 04, 2002 10:28 AM
To:	Kennedy, Phyllis R.
Subject:	RE: 

phyllis

I would have expected big negative liquidations for NSS1 for Nov and DEC on your schedule.  These should have been offset with big annuities to net to zero.  Do you have the liquidation schedule for NSS1 for Nov & Dec?

 -----Original Message-----
From: 	Kennedy, Phyllis R.  
Sent:	Thursday, January 31, 2002 3:37 PM
To:	Mixon, Daryl
Cc:	Tomaski, Richard
Subject:	

 << File: 200112_annuities_scedule&email.xls >>