Subject: ProCaribe - Hedge of August Cargo
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 31 Aug 2001 16:32:06 -0700 (PDT)

Suzanne,

I have entered into 2 swap transactions with Lee Jackson to alter the pricing formula for ProCaribe's latest LPG cargo. The swaps will be entered into your LPG book.

The swaps are as follows:

On 8/31/01 you "sold" 1,510,900 gallons (2900MT) of September MB NON TET Propane at a price of $0.41250 per gallon.

On 8/29/01 you "sold" 1,146,200 gallons (2200MT) of October MB NON TET Propane at a price of $0.41875 per gallon.

For the sake of clarity:

"Sold" means that you will pay Lee the average of the month MB NON TET propane price for the months of September and October ("floating price") for the volumes specified above. In turn, Lee will pay you the fixed prices stated above for the volumes above.

As a result of these swaps, the price ProCaribe pays you for the recent cargo will be as follows:

2,900 MT (1,510,900 gallons)    @ Average September Non-TET Mont Belvieu plus 7.063 cents per gallon   ($0.41250 + $0.07063 = $0.48313)

2,200 MT (1,146,200 gallons)    @ Average October Non-TET Mont Belvieu plus 6.438 cents per gallon   ($0.41875 + $0.06438 = $0.48313)

Remainder of Cargo (approx. 3400 MT)	@ Average Mont Belvieu for 3 days around bill of lading plus 7 cents per gallon  ($0.41313 + $0.07 = $0.48313)

Note that NET OF THE SWAPS, you will receive a fixed price of $0.48313 per gallon with which you will pay PDVSA.

Note:  Bill of Lading date was August 27, 2001

Basis:		521 Gallons/MT

Please confirm your agreement.

Paul