Subject: "Local Production for June".

Body: John, I took the volumes on deal 226556 to 0 for the term of the deal starting June 1. This is the purchase from Belden & Blake behind NYSEG. I changed the volume on deal 226563 from 1 dth/day to 1500 dth/day. This is the purchase from StatOil at CPA. The price on this deal is NX1 + .434 and the price on John's worksheet is NX1 + .54 (per MCF). John, is this price adjusted for dth?? I created deal 280185, purchase from StatOil, volume of 333 day, the price is NX1+ $.56 PER MCF. This is a purchase of local production behind the citygate. David, this deal probably needs to be hedged in Sitara. Cindy - deal 226563 is a purchase from CES - Statoil Energy. I set up deal 280185 with the same counterparty. This deal should have been in the system effective 1/1/2000. According to Elizabeth, we should not use the CES - StatOil Energy. It doesn't matter to me how its set up, however, this deal should have been in the system from Jan and it is the same type of deal as deal 226563. I changed the volume on deal 226747 from 1 dth to 1100 dth/day. This is a purchase from Questar and it is also local production behind CPA. John, there are 3 deals for Questar, the other 2 deals have volumes of 0 right now. Can you tell me how the volume should be split out for pricing purposes? Molly, I created deal 280132, FOM priced sale to CES. This deal will be matched with the CPA local production deals. Let me know if anyone has any questions. Thanks

Subject: "Siggy".

Body: I heard that NE Hub made it through the Oriskany without blowing anything up. Siggy must have been so pleased, and Penn Fuel and CNG so disappointed! Hey, I'm gonna be down the week of May 30-June 3 and would like to get together with you guys. What's going on that week? Would there be any reason, say, to bring golf clubs? I hear that my much ballyhooed former law partner David Hill might be down in Houston the same time and I need to have a few beers on his expense account as well. Pat, I don't think you've met this guy but you need to, if for no other reason because he buys beers. DF

Subject: "Insurance".

Body: According to Cliff Shedd, we would be covered by insurance if we terminated the contract with Furnas and Furnas failed to pay the termination payment. However the insurers will only pay after we receive an arbitration judgement against them and the refuse to honor the judgement. I assume we would also have to exhaust our remedies against trhe guarantor (Eletrobras). Also, we are required to notify the underwriters immediately of a material default.

Subject: "Deal Change - Revision of last night's Deal Correction Report".

Body:
This morning I was notified by Confirms in Houston that one of the deal changes I made last night didn't come through on their side. If you refer to the Deal Correction Report from yesterday, Mike Swerzbin did a deal with EES for Cal'03 that he mistakenly entered twice, once for Cal'03 (571920) and once for Cal'02 (571801). He killed 571920 and kept 571801, but the trade was actually for Cal'03. (Is everyone still with me?) So I restored 571920 and killed 571801 to reverse what he had done. But in my rush just before your calc last night I neglected to look at the volumes of the deal I was restoring, which incidently had been zeroed out, thus leaving Mike with no value for either of the deals. I've reinstated the volumes in deal 571920 and added the error to today's deal correction report. I just wanted to give you guys a heads up. Please let me know if you have questions. Thanks,