It is my recollection that EGM Coal changed the contract from take-or-pay fixed volumes, fixed price to an all-requirements, as-needed contract in order to mark the deal.  It was everyone's understanding that this contract was going to be sold, which it has been.  We no longer have any control or influence over this contract.

Heather

 -----Original Message-----
From: 	Mcgowan, Kevin  
Sent:	Wednesday, September 12, 2001 11:26 AM
To:	Pagan, Ozzie; Kroll, Heather
Cc:	Mcclellan, George; Presto, Kevin M.
Subject:	NC Power Holdings deal

Ozzie and Heather,

In February time frame EGM Coal desk sold firm delivered coal to NC Power Holdings balance of year (2001) for $72/ton.  We also did a requirements deal beyond this point.  My understanding was Ozzie made the balance of the year trade per Kevin Presto.  Ozzie also verified this understanding in a phone conversation with me a couple of weeks back.  NC Power Holdings is currently not taking any coal on there take or pay obligation.  

There is liquidated damages associated with this transaction which need to be settled.  It will also be prudent to determine if the remaining tonnage obligation for balance of the year needs to be settled now or in the future.

Please let me know who is specifically responsible to settle this trade.

KJM