Mark see the below.  Any thoughts?

---------------------- Forwarded by Peter Traung/EU/Enron on 02/04/2001 16:42 
---------------------------


Robbi Rossi@ENRON COMMUNICATIONS
02/04/2001 16:36
To: Peter Traung/EU/Enron@ENRON
cc:  

Subject: Re: Take or pay/options  

Peter,

  I am not doing any deals that reference an existing or future index.  The 
only suggestion I have is to include soft language that states that if an 
index develops, the parties will negotiate a mutually acceptable pricing 
arrangement in respect of such index.  You could include possible examples of 
how this pricing would work.  Absent an established index, however, I do not 
know how you could do more.  Mark Taylor may have some suggestions on 
describing a potential index.  Wish I had better answers for you!

Robbi Rossi
Sr. Counsel
Enron Broadband Services
Phone:  (713) 345-7268
Fax:  (713) 646-8537



	Peter Traung@ENRON
	04/02/01 10:21 AM
		 
		 To: Robbi Rossi/Enron Communications@Enron Communications
		 cc: 
		 Subject: Take or pay/options

Robbi, I hope all is well.  I sent this originally to Cynthia, but realize 
she's away for the week.  Do you have any thoughts on the issues?


---------------------- Forwarded by Peter Traung/EU/Enron on 02/04/2001 16:20 
---------------------------
   


	Enron Europe
	
	From:  Peter Traung                           02/04/2001 14:13
	

To: Cynthia Harkness/Enron Communications@Enron Communications
cc:  

Subject: Take or pay/options

Cynthia, in another one of these deals (like Storm, Carrier 1 etc) we're 
trying to get Swedish incumbent Telia to agree to apply an index that would 
apply after the first year or years.  In the first period, there would be 
agreed set of declining prices.  Thereafter, we're discussing a structure 
where we would be able - up to certain volumes - to buy at "market minus X 
percent".  Now, I understand there is no usable index at this time, but if 
possible I would like to give an agreement like this some backbone by 
identifying the type of index that we would use.  That could be by reference 
to the publisher of the index, types of products etc.  (There would of course 
have to be a fall-back in case the market doesn't delevop as we hope and 
there is no index when we need it.)  

Do you have any thoughts on this based on your experience, for example as to 
likely publishers of an index? Or any index, for example in gas or power, 
that could be used as an example? 

Also, the fall back currently discussed is in the form of obtaining, say, 
three quotes and fixing the price to the lowest or middle quote, etc.  This 
is not a very firm structure, and can be easily blocked/delayed by both 
parties.  I'm also not particularly excited about linking any kind of firm 
commitment on our part to such a structure.  Are you using anything like this 
in the US and do you have any better alternatiives?