Hello,

I hope everyone had a special holiday.  Regarding Westpark, there is NO 
CREDIT RISK...
Historically, the customer places limit orders and stop loss orders with Jim 
Schwigger for NYMX related NG contracts.  Activity is not heavy and trade 
volume is usually limited to a Bcf or less.  We currently hold $1.5MM in cash 
as security on a static position.
January - is off the board.  Enron owes them $6.6MM.
February - has no open volumes.  All positions have been unwound.
March - has no open volumes.  All positions have been unwound.
The issue at bar (to use a legal term) is management strategy.  What I 
proposed and they accepted was $300M for each Bcf open.  Recognizing the fact 
that (i) this is a one man shop and (ii) he (Patrick Locke) is definately 
speculating, is $1.5MM enough security.  Probably not.  I have left word with 
Patrick and Jim about revisiting our philosophy, but he is willing to provide 
collateral and all confirmations are bound by the existing Master Agreement 
that contains a $0 credit line.

Recommendation:  We increase the collateral being held from $1.5MM to $2.5MM 
and margin them for all amounts postive.  Pursue an amendment to the Master 
Agreement that changes the independant amount from $150M to $2.5MM.

That's it.....Move on people...Get a life......

the analyst formerly known as "reves"



   


From:  Russell Diamond                                                        
     12/21/2000 09:15 AM	
	
	
	                           
	

To: Tanya Rohauer/HOU/ECT@ECT, Darren Vanek/NA/Enron@Enron, Brant 
Reves/HOU/ECT@ECT, Wendi LeBrocq/Corp/Enron@Enron
cc:  
Subject: Westpark Var

Tanya,

I have run a VAR on Westpark (see below) and as you can tell the one day VAR, 
at the 95 percentile, for current transactions is $2.5MM.  The 5-day VAR is 
$5.7MM.
Our current exposure is out of the money $7.1MM, thus a net for this period 
is potentialy out of the money $1.4MM.

Thanks
Russell.