Tier	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	New	Old	New	Old	New	Old
1	$4,000	$4,250	$4,400	$4,675	$5,400	$5,738
2	$3,750	$4,000	$4,125	$4,400	$5,063	$5,400
3	$3,500	$3,750	$3,850	$4,125	$4,725	$5,063
4	$3,250	$3,500	$3,575	$3,850	$4,388	$4,725

Tier	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	New	Old	New	Old	New	Old
1	$2,000	$2,125	$2,200	$2,338	$2,700	$2,869
2	$1,875	$2,000	$2,063	$2,200	$2,531	$2,700
3	$1,750	$1,875	$1,925	$2,063	$2,363	$2,531
4	$1,625	$1,750	$1,788	$1,925	$2,194	$2,363

Current systems calculate the margin requirement for spread positions by first determining the "Scan Risk" and then multiplying the number of spreads by a rate set by the Exchange. Scan Risk is determined by netting the outright margin required for each leg of a spread. Spreading between differently margined contracts results in a higher spread margin than between equally margined contracts. Below is provided an example where the legs of a spread are margined differently.

Scan Risk Example at Clearing Member Rates
A spread consisting of one HO leg in Tier 1 and another in Tier 2 will have its requirement (at the clearing member rates) calculated at $ 500 starting on Friday, July 27, 2007.

One Long Tier 1 HO	(1 * $4,000)	=	$4,000
One Short Tier 2 HO	(1 * $3,750)	=	$3,750
Net Scan Risk	($4,000-$3,750)	=	$250
Spread Rate	(1* $ 250)	= +	$250
Total Requirement		=	$500
Summary
Clearing Member (Maintenance Margin):			$500
Member Customer (Initial Margin):			$550
Non-Member Customer (Initial Margin):			$675

This notice supersedes all previous notices regarding outright margins for Heating Oil, NY Harbor Heating Oil Calendar Swap, Heating Oil Financial Contract, and NYMEX miNY™ Heating Oil contracts.