News Release

Exchange to Change Margins on Natural Gas Basis Swap Contracts

Thu Mar 02 2006

NEW YORK, N.Y., March 2, 2006 — The New York Mercantile Exchange, Inc., today announced margin changes for its natural gas, natural gas basis swap contracts, as of the close of business on March 3.

Margins for the first month of the Alberta gas basis swap contract will decrease to $1,500 from $2,000 for clearing members, to $1,650 from $2,200 for members, and to $2,025 from $2,700 for customers. The margins on the second month will increase to $1,000 from $650 for clearing members, to $1,100 from $715 for members, and to $1,350 from $878 for customers. Margins on the third to sixth months will increase to $550 from $500 for clearing members, to $605 from $550 for members, and to $743 from $675 for customers. The margins on the seventh to 12th months will increase to $400 from $300 for clearing members, to $440 from $330 for members, and to $540 from $405 for customers. Margins on all other months will increase to $300 from $200 for clearing members, to $330 from $220 for members, and to $405 from $270 for customers.

The margins for the first month of the Chicago swap contract will decrease to $700 from $800 for clearing members, to $770 from $880 for members, and to $945 from $1,080 for customers. Margins on all other months will increase to $450 from $200 for clearing members, to $495 from $220 for members, and to $608 from $270 for customers.

Margins for the first month of the Houston ship channel basis swap contract will decrease to $900 from $1,000 for clearing members, to $990 from $1,100 for members, and to $1,215 from $1,350 for customers. The margins on all other months will increase to $600 from $300 for clearing members, to $660 from $330 for members, and to $810 from $405 for customers.

Margins for the first month of the San Juan basis swap contract will decrease to $1,200 from $2,000 for clearing members, to $1,320 from $2,200 for members, and to $1,620 from $2,700 for customers. The margins on the second month to sixth months will incur no changes. The margins on the seventh to 12th months will increase to $400 from $300 for clearing members, to $440 from $330 for members, and to $540 from $405 for customers. The margins on all other months will increase to $300 from $200 for clearing members, to $330 from $220 for members, and to $405 from $270 for customers.

Margins for the first month of the Socal swap contract will decrease to $1,500 from $2,000 for clearing members, to $1,650 from $2,200 for members, and to $2,025 from $2,700 for customers. The margins on all other months will be unchanged.

Margins for the first month of the Transco zone 6 basis swap contract will decrease to $500 from $1,200 for clearing members, to $550 from $1,320 for members, and to $675 from $1,620 for customers. The margins on the second month will decrease to $500 from $1,100 for clearing members, to $550 from $1,210 for members, and to $675 from $1,485 for customers. Margins on the third to sixth months will decrease to $300 from $500 for clearing members, to $330 from $550 for members, and to $405 from $675 for customers. The margins on the seventh to 12th months will increase to $800 from $200 for clearing members, to $880 from $220 for members, and to $1,080 from $270 for customers. The margins on all other months will increase to $200 from $100 for clearing members, to $220 from $110 for members, and to $270 from $135 for customers.

The margins for the first month of the Northwest pipeline Rockies basis swap contract will decrease to $1,200 from $1,520 for clearing members, to $1,320 from $1,650 for members, and to $1,620 from $2,025 for customers. Margins on the second month to sixth months will incur no changes. Margins on the seventh to 12th months will increase to $500 from $225 for clearing members, to $550 from $248 for members, and to $675 from $304 for customers. The margins on all other months will increase to $300 from $125 for clearing members, to $330 from $138 for members, and to $405 from $169 for customers.

Margins for the first month of the Panhandle swap contract will decrease to $900 from $1,100 for clearing members, to $990 from $1,210 for members, and to $1,215 from $1,485 for customers. The margins on all other months will be unchanged.

Margins for the first month of the MichCon swap contract will be unchanged. The margins on all other months will increase to $300 from $100 for clearing members, to $330 from $110 for members, and to $405 from $135 for customers

Margins for the first month of the Permian swap contract will decrease to $1,200 from $1,400 for clearing members, to $1,320 from $1,540 for members, and to $1,620 from $1,890 for customers. The margins on all other months will be unchanged.

Margins for the first month of the Texas eastern zone M-3 swap contract will decrease to $1,000 from $1,300 for clearing members, to $1,100 from $1,430 for members, and to $1,350 from $1,755 for customers. The margins on all other months will be unchanged.

Margins for the first month of the PGE&E Citygate and SUMAS swap contract will increase to $1,500 from $2,000 for clearing members, to $1,650 from $2,200 for members, and to $2,025 from $2,700 for customers. The margins on all other months will be unchanged.

Margins for the first month of the NGPL Tex/OK swap contract will decrease to $800 from $1,000 for clearing members, to $880 from $1,100 for members, and to $1,080 from $1,350 for customers. The margins on all other months will be unchanged.

Margins for the first month of the NGPL LA swap contract will increase to $500 from $50 for clearing members, to $550 from $55 for members, and to $675 from $68 for customers. The margins on all other months will increase to $250 from $50 for clearing members, to $275 from $55 for members, and to $338 from $68 for customers.

Margins for the first through sixth month of the NGPL mid-continent swap contract will be unchanged. The margins seventh to 12th months will increase to $450 from $275 for clearing members, to $495 from $303 for members, and to $608 from $371 for customers. The margins on all other months will increase to $300 from $175 for clearing members, to $330 from $193 for members, and to $405 from $236 for customers.

The margins for the first and second month of the CIG Rockies swap contract will be unchanged. Margins on the third to sixth months will increase to $600 from $450 for clearing members, to $660 from $495 for members, and to $810 from $608 for customers. The margins seventh to 12th months will increase to $500 from $300 for clearing members, to $550 from $330 for members, and to $675 from $405 for customers The margins on all other months will increase to $350 from $200 for clearing members, to $385 from $220 for members, and to $473 from $270 for customers.

Margins for the first through sixth month of the Tetco eastern south/STX swap contract will not incur any changes. The margins seventh to 12th months will increase to $550 from $400 for clearing members, to $605 from $440 for members, and to $743 from $540 for customers. The margins on all other months will be unchanged.

Margins for the first month of the ANR LA swap contract will increase to $150 from $50 for clearing members, to $165 from $55 for members, and to $203 from $68 for customers. The margins on all other months will be unchanged.

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