Subject: KCS Value of 3% Transfer to Barclay's
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 21 Jun 2001 16:28:23 -0700 (PDT)

Attached is the valuation of the 3% of the MMBTU hedges that we will be selling.  The valuation is done to the Nymex mid-curves as of the 6/21 close.  The value is currently $1,013,345 (Cell E27, Sheet Inputs-Summary).  Per our conversations, the total hedged MMBTU's were less than 100% of the physical VPP volumes due to the contractual payoff formulas associated with those propertites.  Hence, the 3% we calculated will be somewhat less than 3% of the actual physical volumes depending on the size of those contracts which were not 100% price-based.

Please let me know if you have any questions.

Thanks,

Charlie