Energy Equivalents

                                       1 Cubic foot of natural gas = approximately 1,000 Btu
                                       1 Ccf (100 Cu. Ft.) of natural gas = approximately 100,000 Btu
                                       1 Therm = 100,000 Btu
                                       10 Therms = 1 Dekatherm
                                       1 Dekatherm = 1,000,000 Btu = 1 MMBtu
                                       1 Mcf (1,000 cu. Ft.) of natural gas = 1,000,000 Btu
                                       1 Mcf = 1 Dekatherm
                                       1BCF - 1 billion cubic feet of natural gas
                                       1 Gallon of #2 fuel oil = approximately 140,000 Btu
                                       1 Gallon of Propane = approximately 91,5000 Btu
                                       1 Kilowatt-hour (kWh) of electricity = 3,413 Btu
                                       293 kWh of electricity = 1,000,000 Btu

             Energy Terms

Agency Agreement:-----An agreement that allows a buyer or marketer to act on behalf of a customer to arrange energy supply and delivery.

Aggregation:-----Amassing volumes of gas or electricity from different sources to create a larger package.

Balancing: Equalizing the volumes of energy withdrawn from a system with the volumes of energy input into the system. Typically refers to gas used by a customer versus gas supplied into the system by a marketer.

Base Load:-----A volume of energy that serves as a constant load over a period of time.

Basis (Delivery):-----The financial cost to move natural gas from the Henry Hub to the final deliver point on the pipeline. Basis is defined at the price difference between the cost of a futures contract at Henry Hub and the cash price at the delivery point.

Basis Quote:-----Offer or sale of a cash commodity in terms of the differential above or below the futures price.

Bear:-----One who anticipates a price decrease.

Bidweek:-----The time period at the end of a month when the bulk of the baseload trading on the spot market occurs for the following month. This trading typically occurs in the few days preceeding the pipeline transportation nomination deadlines.

British Thermal Unit (Btu):-----The quantity of heat required to raise one pound of water (about one pint) one degree Fahrenheit at or near its point of maximum density. A common unit of measure for natural gas use and heat output.

Bull: One who anticipates a price increase.

Burnertip:-----The point at which natural gas is used as a fuel. Typically the end point and past the meter inside a facility.

City Gate:-----Physical location where gas is delivered by pipeline to a local distribution company (LDC).

Cubic Foot:-----The most common unit of measurement of gas volume. The amount of gas required to fill a volume of one cubic foot under standard conditions of temperature, pressure and water vapor, usually 14.7 PSI and 60 degrees F.

Dekatherm:----- A unit of heating value equal to 10 therms or 1 million Btu's or 1 thousand cubic feet.

Delivery Month:----- The month specified in given futures contract for delivery of the actual physical commodity.

Delivery Point:----- For a pipeline, the delivery point is where sales or transportation of gas exists the system. For a gas producer, it is the point where the gas enters the pipeline.

Demand:----- The measure of total energy load at a specified point in time.

Financial Gas Contract:----- Contracts in which the primary underlying purpose is to manage price risk.

Firm Service:----- The highest quality of commodity delivery offered to customers which anticipates no planned interruptions.

Futures Contract:----- Standardized contract for the purchase or sale of a commodity that is traded for future delivery under the provisions of exchange regulations. The standard contract for natural gas at Henry Hub is 10,000 MMBtu. The contract specifies the unit of sale, how it is quoted in dollars, minimum and maximum price fluctuations, when and how it is traded, how delivery is made and what the penalties are for failure to delivery.

Futures Options:----- The holder of futures options is given the right but not the obligation to buy or sell a specified futures contract at a specified price.

GISB Contract:----- Gas Industry Standards Board standardized contract for gas marketing activities.

Hedging:----- A purchaser or producer of energy uses a derivative position to protect against adverse price movements in the cash market by securing a price for future delivery.

Henry Hub:----- A pipeline interchange near Erath, LA, where several pipelines interconnect through a header system operated by Sabine Pipeline. Henry Hub is the standard delivery point for the New York Mercantile Exchange natural gas futures contracts.

Interruptible Service:----- Contractual arrangements that allow some portion of energy delivery to be interrupted during specified conditions.

Liquidation:----- The closing out of futures and options positions.

Liquidity:----- A measure of the level of trading activity. A liquid market has a high level of activity.

Market Clearing Price:----- Price determined by buyers and sellers in a free market.

Mcf:----- 1 thousand cubic feet.

MMBtu:----- 1 million British Thermal Units (BTU's). The letter M typically denotes 1,000.

MMcf:----- 1 million cubic feet.

NYMEX:----- New York Mercantile Exchange, the commodity exchange based in New York City.

Option:----- A contract that gives the holder the right, but not the obligation, to purchase or sell the underlying commodity.

Pricing Systems:----- Natural gas prices are generally quoted at the wellhead, delivered into a pipeline, at a citygate or at the burnertip.

Therm:----- Unit of heating value equivalent ot 100,00 BTU's.

Trigger Price:----- A contract provision that allows choice of when to execute a pricing mechanism based on futures price.