Tana/Karen/Kelly:

The product long description below will fall under the new product type US 
Gas FIN OPT (Floating Strike).  Credit (Tom Moran) has approved copying the 
profiles for the new product type from the following:

US Gas Fin Opt

Please respond by 5p.m. on Tuesday, February 27.

Thank you.
Stephanie
---------------------- Forwarded by Stephanie Sever/HOU/ECT on 02/27/2001 
01:20 PM ---------------------------
   


From:  Melba Lozano                                                           
  02/08/2001 10:08 AM	
	
	
	                           
	

To: Mark Taylor/HOU/ECT@ECT, Jeff Blumenthal/HOU/ECT@ECT, Frank 
Hayden/Corp/Enron@Enron, Stephen H Douglas/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT
cc: Robert B Cass/HOU/ECT@ECT, Lisa Lees/HOU/ECT@ECT, Stephanie 
Sever/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Kelly 
Lombardi/NA/Enron@Enron, Chris Walker/HOU/ECT@ECT, Kevin 
Meredith/Corp/Enron@ENRON 
Subject: Approval needed for US Gas Fin Opt (Floating Strike)

Your review and approval of the following product type in the EOL Datamanager 
is needed (for directions on approval , please see steps for approval at the 
bottom of this e-mail). If you have any questions please call me at ext. 
58986.   

Trader: Larry May

US Gas Fin Opt   GD/D HHub - IF HHub EP  Feb01           USD/MM-L

A financial Option Transaction with Enron North America Corp., under which 
the Seller receives the Premium and the Buyer receives the Cash Settlement 
Amount. Each calendar month during the Term of the Transaction will be a 
Determination Period, provided that if the Term of the Transaction is less 
than one calendar month the Determination Period shall be the Term of the 
Transaction. The Notional Quantity per Determination Period shall be 
calculated from the volume submitted by Counterparty on the website in 
accordance with the unit of measure. The Premium shall equal the product of 
(i) the price submitted by Counterparty via the website, multiplied by (ii) 
the number of calendar days during the Term of the Transaction, multiplied by 
(iii) the volume submitted by Counterparty on the website. The Payment Date 
for the Premium shall be 2 business days after the Trade Date of the 
Transaction. The Payment Date(s) for the Cash Settlement Amount shall be 5 
business days after the Cash Settlement Amount is determinable. Where this 
Transaction is a Call Option, the Cash Settlement Amount shall be the greater 
of (i) zero, or (ii) the product of (a) the Notional Quantity per 
Determination Period, multiplied by (b) the Index minus the Strike Price. 
Where this Transaction is a Put Option, the Cash Settlement Amount shall be 
the greater of (i) zero, or (ii) the product of (a) the Notional Quantity per 
Determination Period, multiplied by (b) the Strike Price minus the Index.

The term of the Transaction shall be from the Effective Date of 01 Feb 2001 
to the Termination Date of 28 Feb 2001. 

The Index for a Determination Period shall be the average of the Daily 
Midpoint price published on each calendar day during such Determination 
Period under the heading "Daily Price Survey" in the Louisiana -Onshore South 
- Henry Hub section of Gas Daily, or if a calendar day is not a Business Day 
then the price used shall be the Daily Midpoint price published on the next 
succeeding Business Day. The Strike Price for a Determination Period shall be 
the South Louisiana - Henry Hub Index price in the "Market Center Spot-Gas 
Prices" section located in the first issue of Inside Ferc's Gas Market Report 
published during such Determination Period.
The price is quoted in US Dollars per unit of volume, which will be the 
Contractual Currency. The unit of measure against which the volume is shown 
shall be 10,000 MMBtu's per day. 
The Option style and type shall be a European Put ("EP").
Automatic Exercise is Applicable.


US Gas Fin Opt   GD/D HHub - IF HHub EC  Feb01           USD/MM-L

A financial Option Transaction with Enron North America Corp., under which 
the Seller receives the Premium and the Buyer receives the Cash Settlement 
Amount. Each calendar month during the Term of the Transaction will be a 
Determination Period, provided that if the Term of the Transaction is less 
than one calendar month the Determination Period shall be the Term of the 
Transaction. The Notional Quantity per Determination Period shall be 
calculated from the volume submitted by Counterparty on the website in 
accordance with the unit of measure. The Premium shall equal the product of 
(i) the price submitted by Counterparty via the website, multiplied by (ii) 
the number of calendar days during the Term of the Transaction, multiplied by 
(iii) the volume submitted by Counterparty on the website. The Payment Date 
for the Premium shall be 2 business days after the Trade Date of the 
Transaction. The Payment Date(s) for the Cash Settlement Amount shall be 5 
business days after the Cash Settlement Amount is determinable. Where this 
Transaction is a Call Option, the Cash Settlement Amount shall be the greater 
of (i) zero, or (ii) the product of (a) the Notional Quantity per 
Determination Period, multiplied by (b) the Index minus the Strike Price. 
Where this Transaction is a Put Option, the Cash Settlement Amount shall be 
the greater of (i) zero, or (ii) the product of (a) the Notional Quantity per 
Determination Period, multiplied by (b) the Strike Price minus the Index.

The term of the Transaction shall be from the Effective Date of 01 Feb 2001 
to the Termination Date of 28 Feb 2001. 

The Index for a Determination Period shall be the average of the Daily 
Midpoint price published on each calendar day during such Determination 
Period under the heading "Daily Price Survey" in the Louisiana -Onshore South 
- Henry Hub section of Gas Daily, or if a calendar day is not a Business Day 
then the price used shall be the Daily Midpoint price published on the next 
succeeding Business Day. The Strike Price for a Determination Period shall be 
the South Louisiana - Henry Hub Index price in the "Market Center Spot-Gas 
Prices" section located in the first issue of Inside Ferc's Gas Market Report 
published during such Determination Period.
The price is quoted in US Dollars per unit of volume, which will be the 
Contractual Currency. The unit of measure against which the volume is shown 
shall be 10,000 MMBtu's per day. 
The Option style and type shall be a European Call ("EC").
Automatic Exercise is Applicable.


==============================================================================
=====

STEPS FOR APPROVAL:

click the  START button 
select  PROGRAMS
select  TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
 PROCEED WITH USUAL LOGIN/PASSWORD 
click the Enron Online Production Cluster "START" button  
select EnronOnLine (this is the EOL Datamanager)
 PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Awaiting Approval" (OR  "Partially Approved")
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up 
TO APPROVE:  Right mouse click on "Approved"