Listing of Pine Prairie Energy Center Delivered Natural Gas Futures Contracts (Daily, BALMO and Monthly)

This Special Executive Report (SER) #5589 supersedes SER# 5496 previously issued December 21, 2010.

Please be advised that effective February 6, 2011 for trading on February 7, 2011, the New York Mercantile Exchange, Inc. (NYMEX) will introduce three new natural gas futures contracts physically delivered at Pine Prairie Energy Center (PPEC). The contracts will be traded on the NYMEX floor, electronically through CME Globex and available for clearing services through CME ClearPort. These contracts are listed with NYMEX, and subject to, the rules and regulations of NYMEX and Chicago Mercantile Exchange Inc. 

PPEC has received Federal Energy Regulatory Commission (FERC) approval to make modifications to the PPEC Gas Tariff allowing for new services to accommodate these contracts.

The three PPEC futures contracts to be listed include: PPEC Physically Delivered Natural Gas Daily/Weekend Futures (PPD), PPEC Physically Delivered Natural Gas BALMO Futures (PPB) and PPEC Physically Delivered Natural Gas Monthly Futures (PPM). These contracts provide the dual benefit of termination through backstopped physical delivery and security of an exchange-cleared transaction.

The physical delivery point for these contracts will be the PPEC, a highly-flexible salt cavern storage facility located in Evangeline Parish, Louisiana.  PPEC is strategically located 50 miles from Henry Hub and has nine interconnects to eight major pipelines that service the Gulf Coast, Midwest, Northeast and Southeast markets.

SUMMARY OF CONTRACT SPECIFICATIONS:

Pine Prairie Energy Center (PPEC) Physically Delivered Natural Gas Daily/Weekend Futures

·         Commodity Code: PPD

·         First Listed Contract: 8-Feb-11

·         Delivery Period:

The delivery period shall be for delivery over the next Day. Transactions conducted on Friday are for delivery on Saturday, Sunday, and Monday inclusive.  Transactions conducted on the Business Day prior to an Exchange holiday shall include delivery through and including the next Business Day after the Holiday.

When the last day of a calendar month occurs during a weekend (Saturday, Sunday and, when it applies, Holiday Friday or Holiday Monday) then, for the weekend delivery Days and following Business Day, the following shall apply:

For delivery Days for the remainder of current month, transactions conducted on two Business Days immediately prior to the start of the weekend are for delivery through the remainder of the current month.

For delivery Days for the next month, transactions conducted on the Business Day immediately prior to the start of the weekend are for delivery from the first calendar day of the next month through the first Business Day of the next month.

·         Listing Period: Up to 5 contracts for a week

·         Contract Size:  2,500 MMBtu per day in the delivery period.

·         Termination of Trading:  Trading shall cease at 11:30 a.m. (Eastern Prevailing Time) on the business day prior to first day of the delivery period.

·         Minimum Price Fluctuation:  $0.0025 per MMBtu.

·         Rule Chapter: 227

Pine Prairie Energy Center (PPEC) Physically Delivered Natural Gas BALMO Futures

·         Commodity Code: PPB

·         First Listed Contract: 8-Feb-11

·         Delivery Period:

The delivery period shall be for delivery starting the Day following the contract date (the “Following Day”), through the end of the Month (as defined in the PPEC Tariff), whereby transaction sizes for trading in any balance-of-month Contract shall be the whole number multiples of the number of calendar days starting with the Following Day through and including the last Day of the calendar Month.

·         Listing Period: 1 for Current Month

·         Contract Size:  2,500 MMBtu per day per day in the delivery period.

·         Termination of Trading:  Trading shall cease at 11:30 a.m. (Eastern Prevailing Time) on the business day prior to first day of the delivery period.

·         Minimum Price Fluctuation:  $0.0025 per MMBtu.

·         Rule Chapter: 228

Pine Prairie Energy Center (PPEC) Physically Delivered Natural Gas Monthly Futures

·         Commodity Code: PPM

·         First Listed Contract: March-11

·         Delivery Period:

The delivery period shall be for delivery over a specified calendar Month, as provided in the PPEC Tariff, whereby transaction sizes for trading in any specified calendar month shall be the whole number multiples of the number of calendar days in a specified calendar month.

·         Listing Period: 1 for Next Month

·         Contract Size:  2,500 MMBtu per day in the delivery period

·         Termination of Trading:  Trading shall cease at 11:30 a.m. (Eastern Prevailing Time) on the business day prior to first day of the delivery period.

·         Minimum Price Fluctuation:  $0.0025 per MMBtu.

·         Rule Chapter: 229

Trading Hours for PPEC Contracts:

Open Outcry: Monday – Friday 9:00 a.m. – 11:30 a.m. (8:00 p.m. – 10:30 a.m. Chicago Time/CT).

CME Globex and CME ClearPort: Sunday 6:00 p.m. – Monday 11:30 a.m. (5:00 p.m. – 10:30 a.m. Chicago Time/CT), Monday – Friday 2:00 p.m. – 10:30 a.m. with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)

For more information, please contact Patrick McKinnon at (713) 658-9299.