08/29/2005

Katrina causes Nymex to declare force majeure

Hello:

We are back in the office after a week of business (and some vacation) travel.

In an unprecedented action, the New York Mercantile Exchange (Nymex) declared force majeure (aka Act of God) complications for deliveries of Natural Gas as delineated by August Futures Contracts. The last delivery date was scheduled for Wednesday, but now it is uncertain when the terms of the contracts will be fulfilled.

Yesterday, in anticipation of Hurricane Katrina, Sabine Pipeline, closed the Henry Hub facility in Louisiana. Henry Hub is the pricing point for natural gas futures contracts traded on the Nymex. September and October prices for natural gas contracts are leaping up in price in response.

Our hearts go out to everyone affected by Hurricane Katrina.

According to a recent U.S. Bureau of Labor Statistics' Consumer Expenditure Survey, the average retiree spent 27% less upon retirement. Perhaps, the new retiree can donate all or a portion of that 27%.

Terri G. Millson, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager