Subject: Financial Trading Documentation
From: [email-masked]
Cc: [email-masked]
Date: Fri, 15 Jan 1999 07:22:00 -0800 (PST)

If you didn't believe us before, I'm sure it is by now painfully clear that 
negotiating master swap agreements is a very lengthy process.  My impression 
is that the commercial team in Portland is anxious to begin trading 
financially.  If this is correct, it would be possible, at least from a legal 
point of view, to begin trading now under the existing documents.  In each 
case where a master agreement is already in place, trades entered into before 
the amendments we want will certainly be binding on both parties.  Our only 
issues with trading under these agreements are where we need more restrictive 
credit provisions and that resumption of trading before an amendment is 
signed reduces to some extent our negotiating leverage.  As to the credit 
issue, only the credit group can decide whether or not to permit trading 
under the existing terms.  As for the negotiating leverage, if the commercial 
people want to resume trading immediately, my suggestion would be to let them 
go ahead.  If it turns out that additional leverage is needed, we can always 
stop trading.

Where no master swap agreement exists, we have documentation available to 
enable trading on a limited basis until the master is signed.  The so-called 
"omnibus" confirmation will work for any normal commodity derivative 
transaction and can be customized to include necessary credit provisions - 
even where multiple trades exist with the same counterparty.

Tana has unsuccessfully tried to get you access to our Lotus Notes database 
so you could determine the status of any negotiation on an up-to-the-minute 
basis.  She will be sending a monthly report of our progress until you get 
the necessary software to access the database.  Of course, if any issues come 
up in the meantime, please continue to feel free to call.