Mark,

 Sara, Alan and I met this afternoon to discuss fallback pricing in the energy markets scenario....Sara had sat in on a morning telephone conference with a large number of the large institutional traders...John Nolan and John Wilson were the Enron reps on the call.  Sara noted that she thought there was a subsequent call with basically the same group, but that she did not attend.....we called John Wilson to see if there had been a subsequent meeting....he confirmed that there had been and that he had participated.. 

There appeared to be consensus as how to treat the failure of Platt to publish for the last 2 days. Since many oil traders use the Platt's index and since the oil contracts generally use a monthly average price, the consensus was to delete those days for which Platt did not publish and thus, have fewer days in the monthly average. The Enron oil traders have relatively insignificant contracts to which this index applies, and John Wilson was comfortable with this approach, and was planning to check with one additional trader and get back to Sara for final commercial sign off.

On the spreads between Brent products and TI products, it is common in the industry to only use dates in which both are being traded  (i.e. not July 4 and not the funky Brit banking holidays in August). This is referred to as "common pricing".  There was general consensus that in calculating prices for these spreads, the days where no U.S. prices were published would be treated as Non-common days and thus ignored in the calculation.  John says that Enron' s portfolio of these types of transaction is extremely small and thus, this acceptable to Enron.

On the" Exchange-priced products", the consensus was to use the prices published for first trading day that the Exchange reopens and  trades as the surrogate price for each day in the month that had no Exchange price reported....thus, using a full month in the calculations of monthly average prices.  As you know the vast majority of our natural gas contracts refer to the last three days of the NYMEX trading or the final day. Thus, again Enron's exposure would be relatively low so long as the exchange opens before these critical dates.

The forwarded document indicates that NYMEX is apparently planning to do this as well; however, it could be written more clearly.


Lastly, at the conclusion of our t con with John Wilson we were told by him that the new general counsel of IDA held a conference call today.Unfortunately no one in the legal department was aware of the call so as to participate. Sara agreed that she would call her tomorrow to see what occurred.

Best regards bng 
 -----Original Message-----
From: 	Jones, Tana  
Sent:	Thursday, September 13, 2001 5:41 PM
To:	Belden, Tim; Presto, Kevin M.; Arnold, John; Quigley, Dutch; Nowlan Jr., John L.; Wilson, John L.; Goughary, Jim; Schroeder Jr., Don
Cc:	Cook, Mary; Gray, Barbara N.; Greenberg, Mark; Leite, Francisco Pinto; Nelson, Cheryl; Sayre, Frank; Shackleton, Sara; Taylor, Mark E (Legal)
Subject:	FW: Important information from the New York Mercantile Exchange.



 -----Original Message-----
From: 	Exchangehotline@aol.com@ENRON [mailto:IMCEANOTES-Exchangehotline+40aol+2Ecom+40ENRON@ENRON.com] 
Sent:	Thursday, September 13, 2001 4:35 PM
To:	exchangeinfo@nymex.com
Subject:	Important information from the New York Mercantile Exchange.

Important information from the New York Mercantile Exchange.

Due to safety precautions at the One North End Avenue facility, there will be
no NYMEX ACCESS
 trading session this evening. The Exchange is still
attempting to provide an abbreviated trading session tomorrow.

As previously announced, all trades from the Monday, September 10, 2001,
NYMEX ACCESS
 session and the abbreviated open outcry metals trading sessions
on Tuesday morning have been marked to the settlement prices from Monday's
close. Since there are no settlement prices for the Tuesday and Wednesday
sessions, these trades will be marked "as of" for the Exchange's next
trading session.

Traders are encouraged to check the Hot News section of www.nymex.com or call
(212) 301-4871, extension 900, or 1-866-24-NYMEX, for the latest information
on scheduling.

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