Attached is a scenario that Phillip created and we were hoping to review
with you at last week's and today's meeting.  We are aware of how hectic
things are right now at Enron, so we completely understand you having to
cancel our meetings.  However, if you could please review the attached
scenario and return it to us with your comments as soon as possible, it
would be greatly appreciated.

For your review:

1.Please fill in the positions associated with each risk bucket for natural
and initial positions for gas and aluminum as well as the positions created
by
   buying or selling each instrument
2.If aluminum has different risk buckets than natural gas, please add them
along with the associated positions for natural, initial, and those created
by the
   instruments
3.Is the wording of the instrument names correct and how do we denote that
they are for aluminum rather than natural gas?
4.We (not Phillip )made up all of the numbers on the pricing screen and the
settlement prices so please feel free to change any/all numbers that are
    unrealistic or contradict the optimal hedge (the optimal hedge turns
out to be a loss based on our numbers!)
5.In the scenario overview, we made up the locations Midwest and
Permian---change if unrealistic and please add appropriate locations for
the
   instruments on the pricing screen
6.The optimal hedge given by Phillip is listed on page 2; Based on the
optimal hedge, please specify the payout and amount received for each
    instrument as well as the overall P&L
7. In the scenario overview, do you know if 20,000MMBtu creating 2,000 tons
of aluminum is a realistic conversion?
8. Could you please explain WHY each instrument creates/covers a position
for some risks and not others.
9. Please list any information that was not included and that the learner
would need in order to hedge this scenario

In your return e-mail, if you could also please give us a definition for
natural and initial position.  Make your changes and answers directly onto
the word document.  When you get this, if you could please e-mail or call
me (ext. 56686) with when we can expext to get this back from you and with
any quesitons you might have.  Thank you very much for helping us with
this.

(See attached file: Scenario 4.doc)



Laura de la Torre
Accenture
Resources
Houston, Texas
Direct Dial  713.837.2133
Octel  83 / 72133


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 - Scenario 4.doc