Enron Online Transactions . Any member of the Envera Network (an =01&Envera Network Member=018) who = is a=20 customer of EOL may submit to EGM an irrevocable offer to buy or sell any= =20 petrochemical, natural gas liquids, or plastics product that is then traded= =20 by EGM on EnronOnline, on the standard terms and conditions (including=20 without limitation quantity, quality, shipping dates and payment terms) as= =20 are established for such products on EnronOnline=01v, at a price that is be= tween=20 the bid and ask prices then posted by EGM on EnronOnline=01v, with such off= ers=20 being a binding commitment by such Envera Network Member to complete the=20 proposed transaction on the same trading day (as trading days are determine= d=20 by EGM). EGM agrees to conditionally accept such offers, subject to the=20 following requirements and limitations: Current Envera Network Members (as of the Closing Date) may submit such=20 offers on or before the first anniversary of the Closing Date, and not=20 thereafter. Any Envera Network Member who first becomes a member after the= =20 Closing Date but before December 31, 2001, shall have until the first=20 anniversary of its membership agreement with Envera in which to submit such= =20 offers, but not thereafter. Any Envera Network Member who first becomes a= =20 member after December 31, 2001, shall not be entitled to submit any offers = to=20 EGM under this Section 8.2. All of EGM=01,s obligations under this Section= 8.2=20 shall expire no later than December 31, 2002. The irrevocable offer by the Envera Network Member must be placed as a lim= it=20 order on EnronOnline=01v and made irrevocable until the end of the trading = day=20 in writing (by facsimile or otherwise) or otherwise in accordance with the= =20 standard confirmation procedures of EGM. In no event will EGM be liable fo= r=20 any failure to complete any limit order or trade. =20 The Envera Network Member must be a registered user of EnronOnline=01v and= =20 qualified to trade in the product that is the subject of the offer, all in= =20 accordance with the standard terms established by EGM or EnronOnline=01v. EGM will accept or reject the offer on or before the close of the trading= =20 day and will communicate such acceptance or rejection to the Envera Network= =20 Member; if accepted the transaction will be completed through EnronOnline= =01v. =20 EGM's acceptance or rejection may be based on EGM=01,s ability to reverse t= he=20 trade with a third party or otherwise fully mitigate the risk created by th= e=20 trade, and on such criteria as EGM applies to such trades generally,=20 including without limitation its evaluation of the credit risk of such Enve= ra=20 Network Member based on EGM's standard credit policies then in effect. Any trades of similar products by EGM shall be independent of the=20 transaction offered by the Envera Network Member. EGM's trades will be for= =20 its own account and in no event shall EGM trade for or on behalf of the=20 Envera Network Member. Neither EGM nor EOL will charge the Envera Network Member any transaction= =20 fees with respect to such transaction. The aggregate number of transactions that EGM will be obligated to accept= =20 pursuant to this Section 8.2 shall not exceed one hundred (100) per Envera= =20 Network Member, and shall not exceed an aggregate of five thousand (5,000). No offers shall be accepted by EGM under this Section 8.2 after December 3= 1,=20 2002. No transactions under this Section 8.2 will be executed if, in the sole go= od=20 faith judgment of EOL or EGM, upon advice of its counsel, the result or=20 effect of which may be that any of EGM, EOL, or EnronOnline=01v, their=20 Affiliates or any of their respective businesses (i) could become subject t= o=20 regulation under the Commodities Exchange Act, as amended; (ii) could becom= e=20 subject to regulation by the Commodities Futures Trading Commission; or (ii= i)=20 could become subject to any regulatory proceeding, investigation, action,= =20 inquiry or review.
Q: What is a potential subject line for this email?
answer: Section 8.2
Note: Update on ammonia plant operations. Check out the economics in the last paragrph. LB Ammonia Industry Finally Approaches Full Production Plummeting gas prices have prompted a large number of idled ammonia producers to restart operations this month, after lengthy downtime due to last winter's record gas price increases. Houston-based Industrialinfo.com, which tracks manufacturing, said most of the Gulf Coast and Midcontinent plants are at partial or full capacity. An ammonia industry expert at Duke Energy said there has been a 20% increase in ammonia production (222,000 tons of ammonia) since August, representing about 7.6 Bcf of gas demand (34 MMBtu per ton of ammonia). There was a doubling of ammonia productive capacity in Louisiana alone. "We think just about every plant in the U.S. is back on or in the process of coming back up right now," he said. "Obviously they are not going to be running full out, but every plant is coming back up." A year ago, ammonia producers were rocked by soaring natural gas prices, which reached $10/MMBtu, up from a historical average of $2. Combined with product overcapacity, the rising costs caused a wave of plant shutdowns across the country. Louisiana was particularly hard hit, with five out of eight ammonia plants idled during the summer. Arkansas, Georgia and Texas were among other ammonia producing states affected. The recent decline in gas prices and inventory, however, has sparked some ammonia producers into ramping up production. Triad Nitrogen and PCS Nitrogen both resumed full production in September at their respective plants in Donaldsonville and Geismar, LA, Industrial Information reported. Terra Industries restarted a Verdigris, OK, plant after an extended shutdown and is expected to bring its Blytheville, AK, plant online sometime this month. Koch Industries and IMC Agrico, with plants in Sterlington, Donaldsonville, Convent and Uncle Sam, LA, are now operating at partial capacity. Other ammonia manufacturers are waiting to see if natural gas prices remain stable before resuming production. DuPont in Beaumont, TX, Borden Chemical in Geismar, LA, and PCS in Augusta, GA, remain idled. "It looks as if these guys are going to make money running their plants all winter," the Duke Energy ammonia industry expert said. "They are making less and less money as gas prices rise and ammonia prices fall. I see them at the closest to break-even by February where gas is averaging about $2.85. "Last year the domestic producer margin was only about $3/ton," he said. "They pretty much broke even in terms of gas costs on average. This year they are probably going to make $20-25/ton of production. At $2.80/MMBtu for gas and 34 MMBtu of gas per ton of production, plus $25/ton of additional costs, it will cost them about $120/ton for ammonia production. In New Orleans they will probably cover that for most of the season."
Q: What is a potential subject line for this email?
answer:
Ammonia Industry Plant Update