Don't know about the Shell intermediary part.  I hope that will be spelled 
out in his email.  Also, we have about a 5 year old Local Currency ISDA in 
Place with them, so we could put the trades under that master.  I don't know 
if we want to upgrade the master at this time, or just stay where we are.  He 
said we didn't have a master w/Apache, but when entered my notes into lotus 
notes I noticed we did.  I called him back, he didn't know ERMS was the same 
as ENA.



	Tanya Rohauer
	01/25/2001 02:15 PM
		
		 To: Tana Jones/HOU/ECT@ECT
		 cc: 
		 Subject: Re: Fletcher Challenge/Apache Assignment

Apache is investment grade, but they are not bank quality.  In actuality, I 
think they are about the same quality as Fletcher, regardless of Saul's 
comments.  What is the purpose of the Shell for a day transaction?



From: Tana Jones on 01/25/2001 01:49 PM
To: Tanya Rohauer/HOU/ECT@ECT
cc:  
Subject: Fletcher Challenge/Apache Assignment

Per a conversation I just had with Saul Laureles, an attorney with 
Chamberlain, Hrdlicka, who has been hired to assist Apache/Shell with the 
assignment of the Fletcher Challenge business.  He said:

Fletcher Challenge would like to assign their petro business to Shell 
Holdings for a short time (like one day or so).  Shell would then immediately 
transfer the agreement/transactions to Apache.  He proposes we get a new 
master in place with Apache, since Apache is a better credit than Fletcher 
Challenge.  He said he will send me some letter showing how he would like to 
do this, along with a draft Apache ISDA (without collateral, of course, since 
Apache is such a good credit).  I told him that I can't speak for Credit, but 
we probably are going to have a big problem on that last point.  We never 
enter into masters without a collateral annex attached.  

I'll keep you posted when I hear from him.