Tana/Karen:

The product long description below will fall under the new product type US 
Crude Basis Swap.  Credit (Tom Moran) has approved copying the profiles for 
the new product type from the following:

US WTI Fin Swap

Please respond by 10 a.m. on Wednesday, November 8.

Thank you.
---------------------- Forwarded by Lisa Lees/HOU/ECT on 11/07/2000 02:04 PM 
---------------------------


Robert B Cass
10/31/2000 05:13 PM
To: Matthew Adams/Corp/Enron@ENRON
cc: Richard Schneider/Enron Communications@Enron Communications, Tom 
Moran/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Jeff Blumenthal/HOU/ECT@ECT, 
Stephen H Douglas/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Rudi 
Zipter/HOU/ECT@ECT, Lisa Lees/HOU/ECT@ECT, Jennifer deBoisblanc 
Denny/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Dawn 
C Kenne/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT, Mark Friedman/HOU/ECT@ECT, 
Melba Lozano/HOU/ECT@ECT 
Subject: New EOL Product - Crude Oil Financial

Hi Matt-   

SIGMA FACTOR REQUEST:
Commercial has requested the following new Crude Oil Financial product type 
on EOL.  The product type is similar to a gas basis link product type except 
that the commodity is Crude.   (Platt's Indices will apply for the fixed and 
float pricing) :

New Product TypeCommodity:  
Product Type:   US Crude Fin Basis Swap
Commodity: Crude Oil
Currency:     USD
Default UOM:   Barrels
Country:   USA

Financial Description (e.g):
A US Crude financial Swap Transaction with Enron North America Corp., under 
which either (A) for the case in which Counterparty submits an offer to buy 
from Enron, Counterparty shall pay the Fixed Price and shall receive the 
Floating Price, each in respect of the Notional Quantity per Determination 
Period; or (B) for the case in which Counterparty submits an offer to sell to 
Enron, Counterparty shall receive the Fixed Price and shall pay the Floating 
Price, each in respect of the Notional Quantity per Determination Period. 
Each calendar month during the term of the Transaction will be a 
Determination Period. The Notional Quantity per Determination Period is the 
volume submitted by the Counterparty via the website.  The Payment Date(s) 
will be 5 business days after both the Fixed Price and the Floating Price are 
determinable. The Floating Price shall be the average of the Index for each 
day in the relevant Determination Period.

The term of the Transaction shall be from the Effective Date to the 
Termination Date. The Effective Date is 01 Jan 2001. The Termination Date is 
31 Dec 2001.

(Note:  The following 3 indices will be applicable)
(Light Louisiana Sweet)
The Fixed Price for a Determination Period shall be the mean of the daily 
first line quotations for WTI/(MONTH) under the heading "U.S. $/Bbl" in the 
Crude Price Assessments section of Platt,s Oilgram Price Report for those 
issues published for the applicable Calculation Period, modified by the price 
submitted by the Counterparty on the website.  The Index for a day shall be 
the mean of the daily quotations for LLS under the heading "U.S. $/Bbl" in 
the Crude Price assessments section of Platt,s Oilgram Price Report for those 
issues published for the applicable Calculation Period. 

(West Texas Sour)
The Fixed Price for a Determination Period shall be the mean of the daily 
first line quotations for WTI/(MONTH) under the heading "U.S. $/Bbl" in the 
Crude Price Assessments section of Platt,s Oilgram Price Report for those 
issues published for the applicable Calculation Period, modified by the price 
submitted by the Counterparty on the website.  The Index for a day shall be 
the mean of the daily quotations for WTS under the heading "U.S. $/Bbl" in 
the Crude Price assessments section of Platt,s Oilgram Price Report for those 
issues published for the applicable Calculation Period.

(Midland Sweet.)  
The Fixed Price for a Determination Period shall be the mean of the daily 
first line quotations for WTI/(MONTH) under the heading "U.S. $/Bbl" in the 
Crude Price Assessments section of Platt,s Oilgram Price Report for those 
issues published for the applicable Calculation Period, modified by the price 
submitted by the Counterparty on the website.  The Index for a day shall be 
the mean of the daily quotations for WTI Midland under the heading "U.S. 
$/Bbl" in the Crude Price assessments section of Platt,s Oilgram Price Report 
for those issues published for the applicable Calculation Period.

The price is quoted in US Dollars per unit of volume, which will be the 
Contractual Currency.
The unit of measure against which the price is quoted shall be Barrels per 
month and the quantity shown shall be in Barrels per month.