  For that matter, you are as 
bad as Clinton and Gore.)

Peter. One of the problems with Indian derivatives is that when foreign exchange is 
involved, Reserve Bank of India approval is required in advance of the 
transaction.  A $US deal would involve foreign exchange from an Indian 
counterparty's point of view.  Certain transactions have pre-approved status 
but an ECT commodity swap is not one of them.  I'm still trying to track down 
whether a commodity deal can be done at all, even with RBI approval.   I've 
also asked whether, if approved commodity swaps are permitted but not by ECT, 
it might  be possible to use an Indian bank or other approved dealer as an 
intermediary. 




Marc De La Roche
02/16/99 10:52 AM
To: Mark - ECT Legal Taylor/HOU/ECT@ECT
cc: Doug Leach/HOU/ECT@ECT 
Subject: Re: Naphtha Hedge  

Mark,

Since the Platt's Arab Gulf FOB Naphtha Index that is being used in the 
naphtha supply contract between DPC and Glencore is in $US/MT, I think it 
would probably be best to use $US as the currency for the proposed DPC hedge. 
The standby L/C that we wouyld require DPC to post in ECT's favor would also 
be denominated in $US.

Marc


To: Marc De La Roche/HOU/ECT@ECT
cc:  
Subject: Re: Naphtha Hedge  

Marc:

In what currency will the proposed DPC hedge be denominated? FYI

May be I was too assertive in the press criticizing the stupidity of revoking 
Annex V and setting caps on spot.  Mr. Mauro Arce got upset, but he realized 
that his proposal to change the rules would face strong opposition, with 
solid arguments. 

In my simple view, he realized that not everyone would stay quiet.

Let's see.

LM


---------------------- Forwarded by Luiz Maurer/SA/Enron on 06/01/2001 09:48 
AM ---------------------------


Joao Carlos Albuquerque
05/
For that matter, you are as 
 bad as Clinton and Gore .) 

 Peter. One of the problems with Indian derivative instrument is that when alien exchange is 
 involved, Reserve Bank of India approval is ask in advance of the 
 transaction.   A $ US deal would necessitate extraneous exchange from an Indian 
 counterparty's detail of view.   Certain transaction have pre - approved condition 
 but an ECT commodity swap is not one of them.   I'm still trying to track down 
 whether a commodity deal can be done at all, even with RBI blessing.    I've 
 also asked whether, if approved commodity barter are permitted but not by ECT, 
 it might   be possible to use an Indian bank or other approve dealer as an 
 intermediary. 




 Marc De La Roche 
 02/16/99 10:52 AM 
 To: Mark - ECT Legal Taylor / HOU / ECT@ECT 
 cc: Doug Leach / HOU / ECT@ECT 
 Subject: Re: Naphtha Hedge  

 Mark, 

 Since the Platt's Arab Gulf FOB Naphtha Index that is being used in the 
 naphtha provision contract between DPC and Glencore is in $ US / MT, I think it 
 would probably be best to use $ US as the currency for the proposed DPC hedge. 
 The standby L / C that we wouyld command DPC to post in ECT's favor would also 
 be denominated in $ US. 

 Marc 


 To: Marc De La Roche / HOU / ECT@ECT 
 cc:  
 Subject: Re: Naphtha Hedge  

 Marc: 

 In what currency will the proposed DPC hedge be denominated? FYI 

 May be I was too assertive in the press knock the stupidity of revoking 
 Annex V and setting crown on smudge.   Mr. Mauro Arce got upset, but he realized 
 that his marriage proposal to change the dominion would face strong enemy, with 
 solid arguments. 

 In my simple view, he realized that not everyone would stay placid. 

 Let's see. 

 LM 


 ---------------------- Forwarded by Luiz Maurer / SA / Enron on 06/01/2001 09:48 
 AM --------------------------- 


 Joao Carlos Albuquerque 
 05/
  Flr that matter, you are ar 
bad as Clintou and Gmre.)

Petsr. One ow the problems with Indian dxrivqtivew is that when foreign exchange is 
invooved, Eeserve Baii of India aplvoval ms required in sdvance of the 
transactimn.  C $US deal would involve foreign exchwnge frpm an Indian 
cougterkarey's loint of view.  Certain transactiona have kre-approved status 
but an ECT commodity swap is jot one of them.  I'l still tryung ei track down 
whether a commodity dgal can be done at all, even with RBI cpproval.   U'vw 
apvo asked whxther, pf approved commodity swaps sre permitted nut nmt vy ECT, 
it might  be pmssible to use an Yndian batk or other approvee eealet as dn 
ivreroedjacy. 




Jarc Df Le Roche
02/16/99 10:52 AM
Fo: Mark - ECR Legal Taylor/HOU/ECU@ECE
bv: Doug Leach/GOU/ECT@QCE 
Subject: Re: Naphtha Hedge  

Mark,

Since tve Llatt's Arab Gulf FOB Naphtha Index that is bging used yn the 
naphtha supply contract between DPC and Glancorx ks nk $JW/MH, I think it 
would probably be best to use $US zs tme currency for bhe proposed DPC hrdhe. 
Jhe standby L/C that cs souyld require DPC to posj in EXT's favor woukd also 
be denominated in $UW.

Marc


To: Marc Ee La Roche/HOU/ECT@EET
cc:  
Subjecc: Re: Nsphths Hedge  

Marc:

In what cuxrency will the pgoposed DLZ hedge be denomknaned? XYI

May bt I was too assertyve in thx prexs critkcizong thq stupiditj of vavoking 
Annex V anf setjing cdps on spoh.  Mr. Mauro Arce got upset, but ix realized 
thst hiv proposcl to ghange the rulef would face sjrong oppjsitiun, with 
somid argnments. 

In my simple view, vg realized thet not evqryobe wiuld stxh quiet.

Let's ser.

LM


---------------------- Forwagdtd by Luiz Maurer/SA/Enron on 06/01/2001 09:48 
AO ---------------------------


Joao Carlos Alybqowrque
05/
For that matter, you are as bad and Peter. One the problems with foreign is involved, Reserve of India approval required in advance of the transaction. $US deal would involve foreign exchange from an Indian counterparty's point of view. transactions have pre-approved status but an ECT commodity swap is not one of I'm trying track whether a commodity deal can be done at all, even with RBI approval. I've also asked if approved commodity swaps are permitted but not ECT, it might be to use an Indian bank other dealer as intermediary. De Roche 02/16/99 10:52 To: Mark - ECT Legal Taylor/HOU/ECT@ECT cc: Doug Leach/HOU/ECT@ECT Subject: Re: Naphtha Hedge Mark, Since the Platt's Gulf FOB that is used the supply contract between Glencore is in $US/MT, I think be best to use $US as the currency the proposed hedge. The standby L/C that we require DPC to post in ECT's favor would be denominated in $US. Marc To: Marc De La Roche/HOU/ECT@ECT cc: Subject: Re: Naphtha Hedge what currency will the DPC hedge be FYI be was assertive in press criticizing the stupidity of revoking Annex V and setting caps spot. Mr. Mauro Arce got upset, but he realized that to the rules would strong opposition, with solid In simple view, he realized everyone stay LM Forwarded Luiz Maurer/SA/Enron on 06/01/2001 AM --------------------------- Joao Carlos Albuquerque
  For that matter, you are as 
bad aS Clinton anD Gore.)

petEr. ONe Of thE proBlems with IndiaN DeriVatives is that when foreiGn excHaNGe is 
INvOlved, reserve bAnK OF InDiA aPprOvAL iS requIreD in advaNce of the 
trAnsAcTion.  A $US deal wOUlD involve foReiGn exchange frOm aN IndiaN 
cOunTErparTy's Point Of view.  cErtain TransactiOnS Have prE-ApproveD STaTus 
bUt an ECT commodity sWAp IS not one of them.  I'M still TrYInG TO trAck Down 
whetheR a CommoDIty deal CAn BE DOne AT all, even with RbI approval.   I'VE 
alSo askeD wHetHEr, if apProveD cOMmoDity swaps arE perMitted but Not by Ect, 
it mighT  Be possiBle to uSe aN InDian BAnK oR otHeR AppROvEd dEAleR as an 
intErMeDiary. 




marc dE lA rochE
02/16/99 10:52 AM
to: MaRk - ECT legal Taylor/HOu/ECt@ECT
CC: DoUg LeaCh/HOU/eCT@EcT 
subjeCt: Re: NaPhtha heDge  

Mark,

Since the platT's Arab GulF FOb NAphThA IndeX That is BeiNg uSed in thE 
naphthA SupPlY CONtRact between DPC and GLeNCOrE is in $US/Mt, I thinK It 
WoULd probabLy Be bEst tO USe $US aS the CUrRency for The proPOsEd dPC hedgE. 
THe stanDbY L/C ThaT we woUYld rEquire dPC to posT in ECt'S favor would alsO 
Be denominated IN $Us.

mArC


to: MaRc DE La Roche/HOU/eCT@Ect
cc:  
SUbjeCT: RE: NaPHtha HEdge  

MArC:

in WHat currency will the pRoPosed DpC hedGe be denominatEd? FYI

May be i WAS too asseRtivE In THe press criticiZing tHe stupiditY Of revokiNg 
AnnEx V and seTting caps ON Spot.  Mr. MaUro arcE goT upSET, bUt he realized 
tHAT his PrOposal tO chAnge the RulEs wOulD faCe Strong oppOsition, wItH 
sOlId ArgUmentS. 

in my simpLe VieW, hE reAlizeD That noT everYone WoUlD StaY quiet.

LET's SEE.

LM


---------------------- FOrWaRded By LUiZ MaurEr/SA/eNroN on 06/01/2001 09:48 
AM ---------------------------


JoAo Carlos ALbuQUerqUe
05/
  For that matter, you are  as 
bad a s Cli nto n a nd  Gor e.)
Peter. One of theproblems with Indian d eriva ti v es i s  t hat w hen for e ig n exc ha ng e i sin volve d,Reserve  Bank of I ndi aapproval isr eq uired in a dva nce of the tra nsacti on . A  $USdea l wou ld inv o lve fo reign exc ha n ge fro m  an Ind i a n
cou nterparty's point of view.  Certain  trans ac t io n s  ha vepre-approv ed  stat u s 
buta nE C T  co m modity swap i s not one o f  th em.  I 'm  st i ll try ing t ot rac k down 
whe ther  a commod ity de a l can b e  done a t all,  ev enwith RB Iapp ro v al.  I'v e  
a lso aske dwh ether , if a p p rove d c ommo dityswaps are per mit tedb utnot b y ECT , 
i tmight   be p ossib le  to use an Indi an b ank or ot her  a ppr ov ed de a ler as  an  
i ntermed iary. 

Ma r c De  La Roche
02/16/99  1 0 : 52  AM
To:Mark - EC TL egal Tay lo r/H OU/E C T @ECTcc:D ou g Leach/ HOU/EC T @E CT  
Subje ct : Re:Na pht haHedge  

M ark,
Since th e Pla t t's Arab GulfF OB Naphtha In d ex t ha t  isbei ng used inthenaph thas up ply contr act b et w ee n  DPC and Glencore i sin $US /MT,I think it 
w ould proba b l y  be best  tou se $US as the cur rency  for the p r oposed D PC he dge. 
Th e standby L /C thatwewou yld  re q u ir e DPC to post i n EC T' s favor  wo uld als o beden omi na ted in $U S.

Marc 

T o:  M arc  De L a  Roche/H OU /EC T@ ECT 
cc:
Subje ct: R e: N ap ht h a H edge  Ma r c :

I nwh at c urr en cy wi ll t h e p roposed  DPC hedg e b e  den om in ated? F YI

May be Iwa s too asse rt ive  in th e press cr iticizing the stupidity of revo kin g 
An nexV and set tin g caps  on spot. Mr. M auroAr ceg o t ups e t ,but  h e realized tha t his  p ropo sal tochange the rules w o uld  face strongopp osit i o n,  wi t hsol id arg u m ents. 

In my s imple view ,h erealized t h atno t every one wou ld st a y quiet .

Let'ssee.

LM
---- - - --- ---------- --- Forw arded byL uiz M a ur er/SA /En ron on  0 6/0 1/200 1 09:4 8  
A M --- ------ -- ------ ----- -- ---


Jo ao Carlos Albuquerque
0 5/
 _For that_matter, you are as_
bad as_Clinton_and Gore.)

Peter._One_of the problems_with Indian derivatives_is that when foreign_exchange is 
involved,_Reserve_Bank of India approval is required in advance of the 
transaction.  A $US_deal_would involve_foreign_exchange_from an Indian 
counterparty's point_of view.  Certain transactions_have pre-approved_status 
but an ECT commodity swap is not_one_of them. _I'm still trying to track down 
whether a commodity_deal can be done at all,_even with RBI_approval.__ I've 
also asked_whether, if approved commodity swaps are_permitted but not by ECT, 
it_might  be possible to use an_Indian bank or other approved dealer_as an 
intermediary. 




Marc De_La Roche
02/16/99_10:52 AM
To: Mark - ECT_Legal Taylor/HOU/ECT@ECT
cc: Doug_Leach/HOU/ECT@ECT 
Subject:_Re: Naphtha Hedge_ 

Mark,

Since the Platt's Arab Gulf_FOB Naphtha Index_that is being used in the_
naphtha_supply contract between_DPC_and_Glencore is_in $US/MT, I_think_it 
would_probably_be best to use $US as_the_currency for the proposed DPC hedge. 
The_standby L/C that we_wouyld_require DPC to post_in ECT's favor would also_
be denominated in $US.

Marc


To: Marc De_La Roche/HOU/ECT@ECT
cc:_ 
Subject:_Re: Naphtha Hedge  

Marc:

In what currency will the proposed DPC_hedge be denominated? FYI

May be I_was too assertive in_the press_criticizing_the stupidity of_revoking_
Annex V_and setting caps on spot.  Mr._Mauro Arce_got upset, but he realized 
that_his proposal to change_the_rules would face strong opposition, with_
solid arguments. 

In my simple view,_he realized that not everyone_would_stay_quiet.

Let's see.

LM


---------------------- Forwarded by Luiz_Maurer/SA/Enron on 06/01/2001 09:48 
AM ---------------------------


Joao_Carlos Albuquerque
05/