Liane,   As we discussed yesterday, I am concerned there has been an attempt to  manipulate the  El Paso San Juan monthly index.
A single buyer entered the  marketplace on both September 26 and 27 and paid above market prices  ($4.70-$4.80) for San Juan gas with the intent to distort the index.
At the  time of these trades, offers for physical gas at significantly (10 to 15  cents) lower prices were bypassed in order to establish higher trades to  report into the index calculation.
Additionally, these trades are out of  line with the associated financial swaps for San Juan.
We have compiled a list of financial and physical trades executed from  September 25 to September 27.
These are the complete list of trades from  Enron Online (EOL), Enron's direct phone conversations, and three brokerage  firms (Amerex, APB, and Prebon).
Please see the attached spreadsheet for a  trade by trade list and a summary.
We have also included a summary of gas  daily prices to illustrate the value of San Juan based on several spread  relationships.
The two key points from this data are as follows:   1.
The high physical prices on the 26th & 27th (4.75,4,80) are much greater  than the high financial trades (4.6375,4.665) on those days.
2.
The spread relationship between San Juan and other points (Socal &  Northwest)  is  consistent between the end of September and         October gas daily.
It doesn't make sense to have monthly indeces that  are dramatically different.
I understand you review the trades submitted for outliers.
Hopefully, the  trades submitted will reveal counterparty names and you will be able to  determine that there was only one buyer in the 4.70's and these trades are  outliers.
I wanted to give you some additional points of reference to aid in  establishing a reasonable index.
It is Enron's belief that the trades at  $4.70 and higher  were above market trades that should be excluded from the  calculation of index.
It is our desire to have reliable and accurate indeces against which to  conduct our physical and financial business.
Please contact me  anytime I can assist you towards this goal.
Sincerely,

San Juan Index
Liane, As we discussed yesterday, I am concerned there has been an attempt to manipulate the El Paso San Juan monthly index.
A single buyer entered the marketplace on both September <NUMBER> and <NUMBER> and paid above market prices (<CUR><NUMBER>-<CUR><NUMBER>) for San Juan gas with the intent to distort the index.
At the time of these trades, offers for physical gas at significantly (<NUMBER> to <NUMBER> cents) lower prices were bypassed in order to establish higher trades to report into the index calculation.
Additionally, these trades are out of line with the associated financial swaps for San Juan.
We have compiled a list of financial and physical trades executed from September <NUMBER> to September <NUMBER>.
These are the complete list of trades from <COMPANY> Online (EOL), <COMPANY>'s direct phone conversations, and three brokerage firms (Amerex, APB, and Prebon).
Please see the attached spreadsheet for a trade by trade list and a summary.
We have also included a summary of gas daily prices to illustrate the value of San Juan based on several spread relationships.
The two key points from this data are as follows: <NUMBER>.
The high physical prices on the 00th & 00th (<NUMBER>,0,00) are much greater than the high financial trades (<NUMBER>,0.000) on those days.
<NUMBER>.
The spread relationship between San Juan and other points (Socal & Northwest) is consistent between the end of September and October gas daily.
It doesn't make sense to have monthly indeces that are dramatically different.
I understand you review the trades submitted for outliers.
Hopefully, the trades submitted will reveal counterparty names and you will be able to determine that there was only one buyer in the <NUMBER>'s and these trades are outliers.
I wanted to give you some additional points of reference to aid in establishing a reasonable index.
It is <COMPANY>'s belief that the trades at <CUR><NUMBER> and higher were above market trades that should be excluded from the calculation of index.
It is our desire to have reliable and accurate indeces against which to conduct our physical and financial business.
Please contact me anytime I can assist you towards this goal.
Sincerely,
understand review lower prices bypassed juan monthly index gas intent distort reveal counterparty names submitted outliers manipulate el paso points socal northwest aid establishing reasonable hopefully trades