Subject: Re: Shell Chemical - Index language
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 19 Sep 2000 09:00:00 -0700 (PDT)

Joe, I think the counterparty's point is correct.  Per our discussion, it is 
unlikely that the price would be described as both a "settlement price" and 
be expressed as a high and low price, so I think the suggested revision 
language in your 9/12/00 e-mail to Sara would be better.  I would just insert 
one phrase in the final sentence for clarity:

"In the event that Monomers Market Report publishes both a high and low price 
[for "CG Propylene Contract"] then the Floating Price shall be the arithmetic 
average of such high and low prices." [my insertion bracketed and in bold]

feel free to call w/ any comments or questions -- Bob

Robert E. Bruce
Senior Counsel
Enron North America Corp.
T (713) 345-7780
F (713) 646-3393
[email-masked]

	Larry Joe Hunter@ECT
	09/19/2000 09:37 AM
		 
		 To: Robert Bruce/NA/Enron@Enron
		 cc: 
		 Subject: Re: Shell Chemical - Index language

---------------------- Forwarded by Larry Joe Hunter/HOU/ECT on 09/19/2000 
09:36 AM ---------------------------
To: Larry Joe Hunter/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Kevin Meredith/Corp/Enron@ENRON 
Subject: Re: Shell Chemical - Index language  

one suggestion on the last sentence.

"In the event that the settlement price published by the Monomers Market 
Report includes both a high and low price then the Floating Price shall be 
the arithmetic average of such high and low prices."

thanks, lee

   

	From:  Larry Joe Hunter                           09/12/2000 06:42 PM

To: Sara Shackleton/HOU/ECT@ECT
cc: Kevin Meredith/Corp/Enron@ENRON, Lee Jackson/HOU/ECT@ECT 
Subject: Shell Chemical - Index language

Sara,

We have a Counterparty with a request to adjust our Floating Price language 
for Propylene so that a couple of things will be specified.  
1) the published rate is currently one price only.  They do not specify a 
high and low (But it is possible that a high and low do get published)
2) the publication calls the price "settlement" price in the description. 
Therefore, this Counterparty wishes to see that language included. 

Current:
The Floating Price for each Calculation Period shall be the arithmetic 
average of the high and low price of Propylene - chemical grade in 
Cents/Pound published under the headings &North America Product Prices for 
the applicable month: CG Propylene Contract8 in the month-end issue of 
Chemical Market Associates, Inc.,s Monomers Market Report for the applicable 
Calculation Period

Suggested
The Floating Price for each Calculation Period shall be the settlement price 
for the applicable Calculation Period of Propylene - chemical grade in 
Cents/Pound published under the headings &North America Product Prices for 
the applicable month: CG Propylene Contract8 in the month-end issue of 
Chemical Market Associates, Inc.,s Monomers Market Report for the applicable 
Calculation Period.  In the event that Monomers Market Report publishes both 
a high and low price then the Floating Price shall be the arithmetic average 
of such high and low prices.

Give me a call in the morning and I'll get you a copy of the CMAI publication.

Thanks,
Joe