This could be a problem..........................

Dale

---------------------- Forwarded by Dale Neuner/HOU/ECT on 08/29/2000 02:58 
PM ---------------------------


Lynn Aven@ENRON
08/29/2000 03:10 PM
To: Dale Neuner/HOU/ECT@ECT@ENRON_DEVELOPMENT
cc: Jeff Blumenthal/HOU/ECT@ECT@ENRON_DEVELOPMENT 
Subject: Re: ARG Power and Gas  

When the product is added to the EOL menu, only non-Argentine counterparties 
should be allowed to trade that product.

Lynn


Dale Neuner @ ECT   08/29/2000 03:06 PM

To: Lynn Aven/NA/Enron@ENRON@ENRON_DEVELOPMENT, Jeff Blumenthal/HOU/ECT@ECT
cc:  

Subject: Re: ARG Power and Gas  

The reference in the third product description as a 'US Power Transaction' is 
an error - has been corrected.

When you say 'The documentation should indicate that only non-Argentine 
counterparties will be allowed to enter into this type of transaction.',
what 'documentation' are you referring to?

Dale




Lynn Aven@ENRON
08/29/2000 02:27 PM
To: Jeff Blumenthal/HOU/ECT@ECT, Scott Mills@ECT, Dale 
Neuner@ENRON_DEVELOPMENT
cc: Rudi Zipter/HOU/ECT@ECT, Matthew Adams/Corp/Enron@ENRON, Stephen H 
Douglas/HOU/ECT@ECT, Bradley Diebner@ENRON_DEVELOPMENT, Rick Hopkinson 
Subject: Re: ARG Power and Gas  

Jeff:

I have looked at the products that initially will be traded on EOL in 
Argentina.  

As stated in the summary, the Argentine Power financial swap transaction will 
be enterred into by Enron North America Corp.  The documentation should 
indicate that only non-Argentine counterparties will be allowed to enter into 
this type of transaction.

The Argentine Power Physical Firm transaction should be changed to show that 
the Enron entity enterring into the transaction will be Enron 
Comercializadora Energia Argentina.  The counterparties will be Argentine 
companies.

The third category of power contract does not make sense to me.  It is 
described as a physical trade but is a US transaction.  This does not make 
sense in light of the business conducted in Argentina.  Perhaps you can 
provide an explanation of this transaction for me.


The Enron party and the counterparties for the Argentine Gas Physical 
transaction is correctly stated in the summary.

Regards

Lynn





Jeff Blumenthal@ECT
08/29/2000 10:12 AM
To: Lynn Aven/NA/Enron@Enron
cc:  

Subject: ARG Power and Gas

Lynn,

Thanks for any insight you can provide.  Best regards.
---------------------- Forwarded by Jeff Blumenthal/HOU/ECT on 08/29/2000 
10:11 AM ---------------------------
Dale Neuner   08/29/2000 08:47 AM

To: Scott Mills/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Matthew 
Adams/Corp/Enron@ENRON, Jeff Blumenthal/HOU/ECT@ECT, Stephen H 
Douglas/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT
cc: Jennifer deBoisblanc Denny/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Melba 
Lozano 
Subject: ARG Power and Gas

Scott,

Here are the legal descriptions that we crafted based on information provided 
to us by Argentina; they are not in final form b/c they haven't been 
signed-off on by Legal. 

  

Things are generally sketchy when they come in from ARG, and the lawyer that 
I am working with here in Houston is concerned about he website content. 
Additionally, you are right that we should probably expect the number of 
Products to build, but at this point, the Product Types are:

ARG Gas Phy Fwd (trading book system set to SITARA); for delivery at
 Aldea Brasilera
 Bahia Blanca
 Buenos Aires
 BuenosAires Sur
 Centro-Cordoba
 CentroCatamarca
 Chubut
 Cuyana-Mendoza
 Cuyana-San Luis
 Cuyana-San Juan
 GBA (TGN)
 GBA (TGS)
 Litoral-ProStFe
 Litoral-Prov-BA
 Neuquen (TGN)
 Neuguen (TGS)
 Noroeste
 Norte-Salta
 Norte-Tucuman 
 Santa Cruz
 Tierra delFuego

It is my understanding that these are more delivery zones than they are 
delivery points, and each zone has a few meters that gas can be delivered to 
with no affect on pricing. We are suggesting to ARG that we use something 
like the WAHA language, where Buyer has the right to desinate the meter at 
scheduling. I'll keep you up to speed on this as it develops.

ARG Power Financial Swap (trading book system set to SPREADSHEET)
 traded on the Index EZE Flat

ARG Power Phy Index 
 traded on the Index Cam EZE Flat

ARG Power Phy Fwd
 for delivery at EZE Flat

This is what we have to date. Please let me know if this is sufficient 
information to get you started, or if you need more, I'm glad to help. If you 
think access to TEST is the best route, let me or Jenn know and we'll try to 
get the ball rolling.

RAC - can you provide Sigma Factors, please.

CREDIT and TAX - for your review and consideration.

Dale
3-9746