Regarding the GISB, issues remaining are Section 3.2 Performance Obl. and their Guaranty. We prefer Spot Standard for Section 3.2 however, they argue the Cilco city gate does not have a "Spot Market" . If the city gate is their end user I will give on this point. Tammy is checking on this. The only other issue is their Guaranty to Enron. I have no problem with amending the gty or putting a new one in place. Having said that, I would prefer they draft the amendment. This of course is contingent on credits ok with the change in the gty amount. FYI, I will be out to the office tomorrow afternoon for meetings. If you need me leave a message with my assistant and I will call you back. dp
Q: What is a potential subject line for this email?
answer: CILCO
ENA received a letter 10/30/01 stating that Man would begin margining on a risk-weighted basis rather than using the NYMEX SPAN calculation. This is prohibited under our futures agreement. Man has not formally called for additional margin (which they have the right to do) but rather is withholding about $25M based upon a misunderstanding between traders about moving option positions (I'm not entirely clear about the circumstances). Man has never claimed that the $25M was "additional margin". ENA faxed a letter this morning to Man demanding the return of margin in excess of the SPAN calculation, basically a response to the letter. ENA acounting does not have the software to execute SPAN calculations. A recommendation to purchase the software was made by Sarah Wesner (who then reported to Joe Deffner) to accounting last year. I understand that John Arnold intends to move most positions (including options) from Man to Paribas. However, this information changes frequently. Joe Deffner signed the letter and a copy was delivered to Louise Kitchen. Let me know if you need further information.
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answer: Man Financial: margin calculation
I have fuel waivers on my CNG transport contracts. I am entereing these fuel waivers on the primary capacity deal in Sitara. Do I need to enter them on the secondary capacity deal ticket? Also, I have an IT discount on one of my Tennessee contracts on gas flowing from the Gulf (East Region) to CNG (Market East Region). Which transport capacity deal ticket should I enter the discount on?
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answer: Capacity question
I just spoke with Miriam Radich (Tiger's lawyer) and advised her of ECT's name change effective 9/1/99. She advised that she will revise our docs TOMORROW. Also, we will send a new blackline guaranty to Tiger (terms previously agreed) to reflect name change. Per: It may take several days to have the guaranties executed by Corp. You need to give Marie advance notice on that front. SS
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answer:
Tiger