Justin:

The mention of Statoil made me think of Norway.  Alliance doesn't sound like 
a Norwegian entity so it's probably not an issue here, but do you think we 
should discourage large volume and long term multiple trades with Norwegian 
entities given our continuing uncertainty over netting there?

Mark




Justin Boyd
04/08/99 09:27 AM
To: ECT London European Trading
cc:  
Subject: Potential Long Term Gas Swaption

We are discussing with Alliance Gas Limited (Statoil is their parent) a 
potential long-term, large volume gas swaption. Brief details are :

Enron as option seller
Option exercise period: present to December 1999
Term: 5-6 years, starting 2001
Notional monthly volumes: 18,000,000 therms

In the meantime, we have been negotiating a fully-termed ISDA Master, 
including Credit Support Annex, and seem to be close to finalising this.  As 
to the swaption deal itself, we await their Board's response.