
Date: Wed, 2 May 2001 07:09:00 -0700 (PDT)
From: carlos.alatorre@enron.com
To: elizabeth.sager@enron.com
Subject: FW: Examples of Long Descriptions
Cc: marcus.nettelton@enron.com
Bcc: marcus.nettelton@enron.com

Elizabeth:
Please find below examples of the Long descriptions for US Gas & Crude Nymex
Options
Pls. let me know if you have any questions or need additional information,
Thanks
Carlos

US Gas Fin Opt   NYMEX        EC5.45     Jun01           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 Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. 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. 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.  The Option style and type shall be a European
Call ("EC").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.  The term of the
Transaction shall be from the Effective Date of 01 Jun 2001 to the
Termination Date of 30 Jun 2001.  The Exercise Period(s) shall be the
penultimate Trading Day of the NYMEX Henry Hub Natural Gas Futures Contract
for the applicable Determination Period. The Index for each Exercise Period
shall be the settlement price for the penultimate Trading Day of the NYMEX
Henry Hub Natural Gas Futures Contract for the applicable 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 month.

US Gas Daily Opt GD/D HHub - IF HHub EC  Jul01           USD/MM
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 correspond to the date(s) set forth in the
Product description on the Website.
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
