Allowance Price Indications 07/28/97

	ALLOWANCE PRICE INDICATIONS

MPI 07/28/97
Cantor Environmental Brokerage
One World Trade Center, New York, NY 10048 * Phone (212) 938-4250; 1-800-228-2955 * Fax (212) 938-4252

SO2 Allowance Price Indications

View Market Price Index Guidelines

CANTOR FITZGERALD MARKET PRICE INDEX: . . . $87.87
(Call 212 938-4250 for description)

	Bids		Offers		Trades	MPI
Price/Volume	1,500 @	$87.000 ========	1,500 @	$88.50 ========	Not Listed ============
Weighted Average		$87.00		$88.50	$88.11	$87.87

* Bid and offer for vintage 1997 allowances.

Immediate Settlement:

	Period of Stream			Best Prices ($/Allowance)		Maximum Volume
Term	Start		End	Bid to Buy	Offer to Sell	Bid	Offered
1 year 1 year 1 year 1 year 1 year 1 year 1 year 1 year 15 Years	1997 1998 1999 2000 2001 2002 2003 2004 2010	through	2024	$87.00 $86.15 $86.00 $85.70 $85.25 $84.90 $84.50 $84.05 $35.00	$87.50 $80.00	3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000	3,000 500	Allowances Allowances Allowances Allowances Allowances Allowances Allowances Allowances Allowances/yr

Options:

	Bid/Offer	Type	Vintage	Expiration	Strike Price	Premium
1) 2)	Offer Bid	Call Call	1997 1998-05	negotiable negotiable	negotiable negotiable	negotiable negotiable

Swaps:

Swap Ratio's against vintage 1997 allowances

	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007
Bid	0.50%		1.00%	1.00%	1.25%
Offer	1.00%	1.25%	1.50%	2.00%	2.50%	3.00%	3.50%	4.00%	5.00%	5.50%

DISCLAIMER: ALL PRICES ARE MERELY INDICATIONS OF INTEREST, DO NOT REPRESENT FIRM BIDS AND OFFERS AND THEIR TERMS ARE SUBJECT TO CHANGE WITHOUT NOTICE. THE ABILITY TO EFFECT TRANSFER OF ALLOWANCES IS SUBJECT TO THE FINAL PROCEDURES GOVERNING THE TRANSFER OF ALLOWANCES WITHIN THE ENVIRONMENTAL PROTECTION AGENCY'S ALLOWANCE TRACKING SYSTEM AND CANTOR FITZGERALD'S POLICIES AND PROCEDURES IN EFFECT FROM TIME TO TIME.

Market Beat...

The Cantor Fitzgerald MPI moved down drastically in July to $87.87, an 1.8% decrease from June returning all of the price gains seen earlier this year. The July MPI is now 8.7% higher than the July 1996 MPI.

During the first half of the month, the market experienced a large supply of Phase 2 allowances that generated aggressive selling in the spot market. Coinciding with that, few buyers stepped up their activities mitigating the downward pressure on price from the new supply. The trading range for the month was $86.00 - $90.25.

Visit Our Web Site www.cantor.com/Cantor Environmental Brokerage/
Our site shows price indications for all of the major air emission trading markets. We welcome your comments on how we can improve our site to better serve your needs.

Greenhouse Gas Offsets and OPTIONS on Offsets Available !!!
Cantor Environmental Brokerage has assembled a portfolio of high quality offsets derived from a variety of sources. Prices range from $0.17 to $0.50 per ton of CO2 equivalent. Flexible payment terms, including Options on offsets are available.
For details call 212-938-4250

Andy Kruger joins Cantor Environmental Brokerage in Stamford Connecticut Offices...
Andy will be specializing in Title I trading (e.g., ERCs, DERs) for the eastern seaboard states serving credit creators, buyers and sellers, and companies requiring environmental approvals. Prior to joining Cantor Environmental Brokerage, Andy worked for the US EPA in the office of mobile sources, AER*X, the nation's first emissions trading firm, and Harris, Beach & Wilcox law firm in the areas of air and water pollution, commercial transactions, and land use. Andy is a member of the Connecticut Bar and US District Court, and an environmental engineer. He has participated in the development of the open market trading rules, and assisted in credit creation, banking, marketing, acquisition, and sales.

Cantor Environmental Brokerage Serves All Your Air Credit Trading Needs....
In addition to brokering Title IV SO2 emission allowances, Cantor Environmental Brokerage is the leading broker of Title I air credits (NOx, SOx, VOC, CO, PM10). In addition, we execute market assessment studies, and provide a complete array of services needed by companies wishing to take full advantage of their air credit market opportunities.

Cantor Environmental Brokerage Staff and Phone Numbers...

Carlton Bartels, Managing Director New York direct phone line 212-938-4250

Josh Margolis, Senior Vice President San Francisco direct phone line 415-296-9359

Robin Langdon, Vice President San Francisco direct phone line 415-296-9495

Andrew Kruger, Vice President Stamford, CT direct phone line 203-316-4036

Nancy Weitz, Associate, Broker New York direct phone line 212-938-4250

Jude Moussa, Associate New York direct phone line 212-938-4250

Christine Grandstaff, Associate Los Angeles direct phone line 714-597-0517

All Cantor Environmental Brokerage offices can be reached by calling 1-800-228-2955, or by E-mail at Cantor Environmental [email protected]

Questions/Comments? E-mail Josh Margolis

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