Message-ID: <337934.1075841594981.JavaMail.evans@thyme> Date: Fri, 2 Nov 2001 09:26:35 -0800 (PST) From: geoff.storey@enron.com To: tesse@sempratrading.com, msessa@sempratrading.com Subject: RE: Proposed trades Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Storey, Geoff X-To: 'Todd Esse' , 'msessa@sempratrading.com' X-cc: X-bcc: X-Folder: \ExMerge - Storey, Geoff\Credit Rings X-Origin: STOREY-G X-FileName: geoff storey 6-26-02.PST Here is the credit ring we would like to do: ENA buys from Sempra Cal02 Nymex swap @ ATM + $2 ENA sells to NY Bank Cal02 Nymex swap @ ATM + $2 NY Bank sells to Sempra Cal02 Nymex swap @ ATM + $2 We can then do an opposite ring of ATM trades to keep counterparty position= s flat. ENA release margin to Sempra. Sempra posts margin to NY bank based on their= ISDA contractual rights. NY Bank's Enron credit exposure is replaced with = Sempra. All the trades would fall within our existing ISDAs. Our lawyers have added= some language for the confirms that would tie the first ring of trades tog= ether. That language is included below. If you have any legal questions fee= l free to call our lawyer Mark Taylor at 713-853-7459. If you have any questions feel free to call me at 713-853-7058. Geof Storey "Each of the parties to this Agreement recognizes and acknowledges that the= parties are acting and agreeing to perform their obligations hereunder in = reliance upon (i) the timely execution and delivery by [legal name of other= counterparty] ("Third Party") and Party A of a transaction in substantiall= y the form attached hereto as Exhibit A ("Third Party Transaction A") and w= ould not otherwise agree to execute, deliver and perform under this Agreeme= nt if Third Party and Party A were not contemporaneously executing and deli= vering Third Party Transaction A and (ii) the timely execution and delivery= by Third Party and Party B of a transaction in substantially the form atta= ched hereto as Exhibit B ("Third party Transaction B") and would not otherw= ise agree to execute, deliver and perform under this Agreement if Third Par= ty and Party B were not contemporaneously executing and delivering Third pa= rty Transaction B. The effectiveness of this Agreement shall be subject to = the condition that contemporaneously with the execution and delivery of thi= s Agreement Party A and Third Party execute and deliver Third Party Transac= tion A and Party B and Third Party execute and deliver Third Party Transact= ion B." -----Original Message----- From: Todd Esse [mailto:tesse@sempratrading.com] Sent: Thursday, November 01, 2001 1:10 PM To: 'gstorey@enron.com' Cc: 'lavorato@enron.com' Subject: Proposed trades Please see the attached list of trades that we would appreciate doing with yourselves today. If there are any questions please give me a call at 203 355 5888. Thank you very much. Regards Todd <> <> <>=20 ********************************************************************** This e-mail contains privileged attorney-client communications and/or confi= dential information, and is only for the use by the intended recipient. Rec= eipt by an unintended recipient does not constitute a waiver of any applica= ble privilege." Reading, disclosure, discussion, dissemination, distribution or copying of = this information by anyone other than the intended recipient or his or her = employees or agents is strictly prohibited. If you have received this comm= unication in error, please immediately notify us and delete the original ma= terial from your computer." Sempra Energy Trading Corp. (SET) is not the same company as SDG&E or SoCal= Gas, the utilities owned by SET's parent company. SET is not regulated by = the California Public Utilities Commission and you do not have to buy SET's= products and services to continue to receive quality regulated service fro= m the utilities." **********************************************************************