Datasets:

Yale-LILY

/

aeslc

like 11

If you did not fill out a self evaluation during the PRC , please do so now ASAP. This was originally listed as optional but now I am told this needs to be done by all. I nee to work on this Friday so please complete ASAP Wayne

PRC Self Evaluation

Dear Sir's Confirm ETA Qalhat 13th. May 0900 local time. Brgds Oe. Hansen Master LNG/C "Hoegh galleon" E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+873 330853910 Fax : Inmarsat fax no.+873 330853913 Telex : Inmarsat B telex no.+583 330853915 Telex : Inmarsat C telex no.+583 430853910 (24hrs.watch)

ETA Notice.

Les/Gene,=09 With regard to determining the BTU's of Return Gas for custody transfer, I = am not aware of any facility that actually measures the flow of gas to the = ship. Such low pressure flow meters would not provide reliable readings. = Other companies, such as PERTAMINA's CIF Trade with Japan, account for retu= rn gas by measuring the volume of LNG offloaded from the ship, then calcula= ting the BTU's of the gas returned to the ship based upon measured temperat= ure and pressure on the ship at the end of ship unloading, and assuming a c= omposition equivalent to 100% methane. Actual return gas will be a compos= ition containing N2, C1, and C2, and probably have a GHV slightly less than= 100% methane, depending upon the amount of Nitrogen in the LNG in storage.= Presently, SLNG does not have any sample points for boiloff gas, and no pl= ans for installing any. With regard to the FERC Tariff Calculation, the Return Gas is accounted for= in what is termed, LAUF (losses and unaccounted for) gas, an amount determ= ined by differential storage volume. When comparing expected BG Return Gas= vs Enron Return Gas, the volume of Return Gas should be directly proportio= nal to the volume of gas delivered, as pressure and temperatures at the end= of unloading should be essentially equivalent (pressure must be sufficient= to allow LNG from the manifolds to drain back into the tanks). Willful ope= rator intervention would likely have to take place to significantly increas= e the pressure and therefore the mass of the return gas. Therefore, it is r= ecommended that we not press for a special accounting for the Return Gas in= the Definitive Agreement with El Paso. For accounting purposes, we should= also track the Return Gas for Enron deliveries, just in case it does becom= e an issue. Should either EPME or BG push for specific Return Gas accounti= ng, we should not oppose, as it is easily calculated utilizing measured vol= ume, temperature, and pressure with an composition of assumed 100% methane. Regards

Return Gas

Dear Sir; Due to boilerproblems we will have a delay. Speed is now 12-13 knots on one boiler. It is a bit early to say when the other boiler will be in operation, but hopefully this evening. I will keep you updated. HOEGH GALLEON, DATE:07-June-01 12:00 16:00 (UTC) A) Position at noon: N 24? 01' W 082? 10' B) Dist. From last noon: 337 nm C) Dist. To go to next port: 712 nm D) ETA next port: LAKE CHARLES 09-Jun 09:00 LT E) 1: Av. wind/sea Wind: ESE 3 Sea: 3 2: Average speed 14.04 kn RPM: 69.56 3: BOG 186.2 m3 5: F.O Consumed 29 MT 6: G.O. Consumed 0 MT 7: Average vapor press Average liq. Temp: Tk1: 0.128 bar -158.13 ?C

POSREP 7 JUNE

Here is another matrix of TW "Current Shipper" rates & surcharges. This one is not posted on the web. I don't know whether anyone needs/uses it, anymore, but I have been keeping it up. There is a new tab for each change in Current Shipper Rates. The latest is "200111" Elizabeth - I forgot to send this to you this morning. Jeanette - I don't recall whether I sent this along with the other TW files.

FYI 11/2001 TW Rate Matrix - same rates, different format

Hi all, Paula Lacour has requested that I change the format of the pricing spreadsheet for the following 3 products: Premium Unleaded 93 Waterborne, Unleaded 87 USGC Waterborne and LS No. 2 Fuel Oil Waterborne to dollars per gallon (ex. 61.500 to now read .61500). If there are no objections, this change will take place beginning Nov. 1st. If you do not agree with this change please let me know. Thank you,

Pricing Format Change

NGI's Daily Gas Price Index published : October 29, 2001 ALJ Clears Transwestern of Market Power Charges A FERC administrative law judge has found no improprieties, nor evidence of the exercise of market power in negotiated rate contracts between Transwestern Pipeline and two shippers on its system, which resulted in the shippers being charged as much as $27/MMBtu last February, far in excess of the pipeline's allowed transportation rate of 38 cents/MMBtu (RP97-288-009). ALJ Jacob Leventhal had only one fault to find, and that was with Transwestern's method of posting capacity. The judge said, and Transwestern agreed, to modify its tariff "so that all posting, bidding and award procedures are set forth in a separate provision with an appropriate caption" on its Internet bulletin board. Shippers had said that reviewing capacity on the Transwestern web site was "a tortuous process." Indicated Shippers claimed Transwestern's inadequate capacity posting and award procedures did not provide all interested parties with an opportunity to bid for the capacity that was available. While "both Indicated Shippers and (FERC) Staff find it curious that SET (Sempra Energy Trading) and Richardson (Products Co.) were the sole bidders on the contracts awarded to each of them...curiosity does not translate into proof," the judge said. Witnesses in the expedited hearing testified no bids were considered in advance of the capacity posting. The judge subsequently found the capacity was awarded in a manner consistent with Transwestern's tariff. Similarly, Levanthal could find no evidence that Transwestern exercised market power in negotiating the rates with shippers or withholding or threatening to withhold capacity. The capacity was available at recourse rates, and the shippers knew those rates were available. "Staff's arguments really are criticisms of the posting and award procedures, but do not demonstrate the exercise of market power." The two shippers said they made a business decision to propose the "index-to-index" formula that produced the higher rates, rather than take the recourse rate "to minimize any risk on transportation options." The index-to-index formula refers to taking the difference between the daily published commodity prices at two different points and subtracting to get the transportation rate between them. In this case the two points were the San Juan Basin and the SoCal Needles delivery point. The case was set for expedited hearing last summer by the commissioners acting on staff recommendations.

NGI Article on TW Ruling

POSREP HOEGH GALLEON, DATE:May 3rd. 1200lt. A) Position at noon : N 37 24 E 006 14 B) Dist. from last noon : 461 n. miles C) Dist. to go to next port: 3828 n. miles (Qalhat) D) Eta next port : May 13th. 0900 local time E) 1:Average sea/weather : Wind:SW 4 Sea:SW 3 2:Average speed : 19,21 knots / average RPM 93,03 3:B.O.G. consumed : Nil 4:F.O. consumed : 154mt 5:G.O. consumed : Nil ETA Port Said May 6th. 1600 local time. Brgds Oe. Hansen Master LNG/C "Hoegh galleon" E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+873 330853910 Fax : Inmarsat fax no.+873 330853913 Telex : Inmarsat B telex no.+583 330853915 Telex : Inmarsat C telex no.+583 430853910 (24hrs.watch)

DAILY POS. REPORT MAY 3RD.

Hello Paul Sorry it's taken me a while to get back to you but I have been out of the office on vacation for a week. I think you asked me to verify to whom and where we sent original shipping documents. |-----------------------------------------|

EcoElectrica - Shipping Documents

When: Monday, October 22, 2001 1:00 PM-2:00 PM (GMT-06:00) Central Time (US & Canada). Where: 40c2 houston / Net Meeting Omaha *~*~*~*~*~*~*~*~*~* Please attend a meeting to "Kickoff" the user acceptance testing phase of our Pipeline Profile Pricing View. Please let me know if you cannot attend. thank you, RAM

Canceled: Pipeline profile pricing view testing team

Transwestern's average deliveries to California were 1017 MMBtu/d (93%), with San Juan lateral throughput at 882 MMBtu/d. Total East deliveries averaged 510 MMBtu/d. El Paso's average deliveries to California were 1961 MMBtu/d (76%): - PG&ETop, capacity of 1140 MMBtu/d, deliveries of 643 MMBtu/d (56%) - SoCalEhr, capacity 1025 MMBtu/d, deliveries of 938 MMBtu/d (92%) - SoCalTop, capacity 413 MMBtu/d, deliveries of 380 MMBtu/d (92%) Friday's posted Gas Daily prices: SoCal gas, large pkgs 2.34 (+.03) PG&E, large pkgs 2.35 (+.09) TW San Juan n/a TW Permian 2.165 (-.025) Enron Online bases: Nov-Mar Apr-Oct Perm-CA .15 (-.06) .23 (even) SJ - CA .24 (-.04) .41 (-.03) SJ-Waha .12 (+.02) .22 (-.04) Perm-Waha .03 (even) .04 (even)

California Capacity Report for Week of 10/15-10/19

Paul, You would have been very proud of me if you had seen how quickly I was able to understand (from the graph Elio showed me) the nature of the proposed hedge for Procaribe's next cargo. How are we on locking up the cargo (ordering it) and putting the hedge in place? How do the curves look like right now? Going down? Also, Elio, how comfortable are you with Miguel's projected sales figures? What does it assume re: Humberto? Thanks

Procaribe hedge

CERA notified us yesterday of new procedures for accessing the CERA web site. If you have never registered for www.cera.com, please follow the procedures attached. Call me if you have any questions.

Changes in Registration for CERA Access

hi Paul, my numbers never changed. if you tried to reach me during the last 30 min, bad luck, I was in a meeting. I will try to call you back. Regards,

my numbers

Second CA Merchant Storage Field Pushes Back Opening California's second merchant underground natural gas storage project near Sacramento began injecting supplies this month, but its commercial start-up date has been pushed back to Dec. 1, according to the California operations manager for Houston-based Western Hub Properties LLC, the developer. Although it is not fully subscribed more than half the capacity is under contract, according to Jim Fossum, the in-state manager for Western Hub, which was purchased last summer by a partnership of Aquila Inc and ArcLight Energy Partners Fund in a $220 million deal that is still several months away from approval from the California Public Utilities Commission. The Lodi Storage Project near the town of Lodi, CA, about 35 miles south of the state capital, will have "high-performance, quick-cycle-capabilities" in a project that stores 12 Bcf of natural gas with a 500 MMcf/d withdrawal rate and 400 MMcf/d injection rate. Fossum said Western Hub also is pursuing a second merchant storage project in the southern half of the state around Bakersfield in the Wheeler Ridge area close to the nexus of all the major interstate natural gas pipeline coming into California. That project, he said, is not included in the Aquila partnership purchase at this time, and will be developed initial by a still-to-be-named company using some of the same personnel that developed Lodi. The same group also has a potential storage site identified in Texas, near San Antonio.

Calif Lodi Storage Project Won't Start Up Now Until December 1

We hereby confirm our sale of Propane to ProCaribe as follows: Seller: Enron Liquid Fuels, Inc. Buyer: ProCaribe Product/Quality: Fully Refrigerated HD-5 Propane Quantity: 8500 MT +/- 5 percent, Seller's option Price: Mean average MB OPIS NTET Propane for 3 days around B/L plus 7 cpg Load Laycan: 22-24 October, 2001 Vessel: Nelly Maersk or sub Terms: CIF Tallaboa Laytime: 66 hrs Total - Including load and discharge ports Inspection: 50/50 Seller/Buyer at loadport Full contract confirmation to follow. Best regards,

October Propane - 8500 MT via Nelly Maersk or sub

Maria Pavlou has graciously agreed to give the TW Commercial Group a brief review of the Global Settlement on Thursday, November 1 from 10 - 11:30 am in 49C2. Please mark your calendars if you are interested in attending. Lorraine

TW Global Settlement

I have added group 'MarketingDashboard' to your profile for JavaWebStart. Please allow 15 minutes for server replication. Then you will need to logoff/logon. If you have any problems, please feel free to give me a call. Thanks,

JavaWebStart follow up

PDVSA have come in with the following FOB indication. This does mean, however, that we must find our own vessel. I had a conversation with PDVSA regarding the FOB price which they are not inclined to lower at this moment. The FOB price isn't that bad considering alternative sources. quote SUZANNE, WE HEREBY CONFIRM AVAILABILITY OF 8,500 MT OF HD5 EX-JOSE OCTOBER 22 - 24, 2001. AT THIS TIME WE DO NOT HAVE TONNAGE TO EXECUTE THE TRANSPORTATION. RESULTING TRANSACTION WOULD BE ON FOB BASIS. PRICE: MEAN MTB NTET C3 + 3 CPG. BL +/- 1 DAY. OTHER TERMS AND CONDITIONS AS PER LAST. GRATEFUL YOUR COMMENTS. GONZALO PARIS unquote There are not a lot of vessels out there at the moment. Geogas' vessel cannot make it until November. Maersk has a vessel and is willing to do the voyage on our dates for $.04 per gallon. The laytime is the only problem as they will only give us 66 hours (they started at $26/mt and 60 hrs). PDVSA should take no more than 24 hrs, which leaves 42 for discharge at ProCaribe. We have the vessel on subs until 9:00 am Houston time tomorrow. Please advise your comments. Best regards,

October Supply

Note: Update on ammonia plant operations. Check out the economics in the last paragrph. LB Ammonia Industry Finally Approaches Full Production Plummeting gas prices have prompted a large number of idled ammonia producers to restart operations this month, after lengthy downtime due to last winter's record gas price increases. Houston-based Industrialinfo.com, which tracks manufacturing, said most of the Gulf Coast and Midcontinent plants are at partial or full capacity. An ammonia industry expert at Duke Energy said there has been a 20% increase in ammonia production (222,000 tons of ammonia) since August, representing about 7.6 Bcf of gas demand (34 MMBtu per ton of ammonia). There was a doubling of ammonia productive capacity in Louisiana alone. "We think just about every plant in the U.S. is back on or in the process of coming back up right now," he said. "Obviously they are not going to be running full out, but every plant is coming back up." A year ago, ammonia producers were rocked by soaring natural gas prices, which reached $10/MMBtu, up from a historical average of $2. Combined with product overcapacity, the rising costs caused a wave of plant shutdowns across the country. Louisiana was particularly hard hit, with five out of eight ammonia plants idled during the summer. Arkansas, Georgia and Texas were among other ammonia producing states affected. The recent decline in gas prices and inventory, however, has sparked some ammonia producers into ramping up production. Triad Nitrogen and PCS Nitrogen both resumed full production in September at their respective plants in Donaldsonville and Geismar, LA, Industrial Information reported. Terra Industries restarted a Verdigris, OK, plant after an extended shutdown and is expected to bring its Blytheville, AK, plant online sometime this month. Koch Industries and IMC Agrico, with plants in Sterlington, Donaldsonville, Convent and Uncle Sam, LA, are now operating at partial capacity. Other ammonia manufacturers are waiting to see if natural gas prices remain stable before resuming production. DuPont in Beaumont, TX, Borden Chemical in Geismar, LA, and PCS in Augusta, GA, remain idled. "It looks as if these guys are going to make money running their plants all winter," the Duke Energy ammonia industry expert said. "They are making less and less money as gas prices rise and ammonia prices fall. I see them at the closest to break-even by February where gas is averaging about $2.85. "Last year the domestic producer margin was only about $3/ton," he said. "They pretty much broke even in terms of gas costs on average. This year they are probably going to make $20-25/ton of production. At $2.80/MMBtu for gas and 34 MMBtu of gas per ton of production, plus $25/ton of additional costs, it will cost them about $120/ton for ammonia production. In New Orleans they will probably cover that for most of the season."

Ammonia Industry Plant Update

Dear Sir's. Confirm vessel's ETA Calhat 13th. May 0900 lt. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

ETA NOTICE.

Please be informed, Kim has scheduled an update meeting on tomorrow, Tuesday, October 9, 1:30 - 2:30p in EB-1336. Please mark your calendars accordingly. adr

Updating Kim

Per conversations with PDVSA (Gonzalo Paris) on Friday and again this morning, PDVSA cannot confirm the availability of an October cargo until this afternoon. And while I am relatively certain we can get this cargo from PDVSA, I have asked Bo to look around and see what is available from other sources just in case PDVSA is unable to supply. I am expecting to hear from them no later than 2:00 pm Houston time and will keep you advised. Best regards,

October Propane ex PDVSA

Effective today, Northern Border is lifting a firm-only restriction on its 42-inch Monchy/Port of Morgan to Ventura segment. The constraint had been implemented Wednesday due to compressor station outages upstream of Ventura. El Paso Field Services has scheduled its annual maintenance shutdown of the Waha Plant for Oct. 7-12. Fourteen gathering systems will be shut in. Capacity of the San Juan Crossover will remain restricted to 570 MMcf/d until repairs are completed on an air leak in the Lincoln Station's turbine, El Paso said.

FYI - El Paso Outages Notes

Transwestern's average deliveries to California were 1071 MMBtu/d (98%), with San Juan lateral throughput at 867 MMBtu/d. Total East deliveries averaged 339 MMBtu/d. El Paso's average deliveries to California were 2178 MMBtu/d (76%): - PG&ETop, capacity of 1140 MMBtu/d, deliveries of 726 MMBtu/d (64%) - SoCalEhr, capacity 1216 MMBtu/d, deliveries of 1039 MMBtu/d (85%) - SoCalTop, capacity 528 MMBtu/d, deliveries of 413 MMBtu/d (78%) Friday's posted Gas Daily prices: SoCal gas, large pkgs 2.125 (+.33) PG&E, large pkgs 2.03 (+.335) TW San Juan n/a TW Permian 1.97 (+.335) Enron Online bases: Nov-Mar Apr-Oct Perm-CA .16 (-.025) .20 (-.04) SJ - CA .24 (-.03) .43 (-.055) SJ-Waha .11 (-.01) .27 (-.01) Perm-Waha .03 (-.005) .04 (-.005)

California Capacity Report for Week of 10/1-10/5

Northwest Natural In Talks With Enron Over Portland Utility=20 By Wall Street Journal staff reporters Robin Sidel, Rebecca Smith and Nikhi= l Deogun 10/05/2001 The Wall Street Journal B2 (Copyright (c) 2001, Dow Jones & Company, Inc.)= =20 Enron Corp. is in advanced discussions to sell its Portland General Electri= c utility unit to Northwest Natural Gas Co. for about $1.8 billion in cash = and stock in a highly leveraged transaction that would eventually give Enro= n a minority stake in Northwest, according to people familiar with the matt= er.=20 The discussions are at a very delicate stage, and some important points nee= d to be finalized, these people caution. The current environment could also= make financing such a transaction quite difficult, and board approval isn'= t a certainty. However, should the two sides agree to terms, a deal could b= e announced in the next few days. Northwest Natural is also expected to ass= ume roughly $1 billion in debt.=20 Enron and Northwest Natural declined to comment. If a transaction is consu= mmated, it would come nearly six months after the collapse of Enron's agree= ment to sell the utility to Sierra Pacific Resources. That transaction fell= apart in part because of the California energy crisis. A purchase of Port= land General would be a very big bite for Northwest Natural, which has a ma= rket capitalization of just $650 million and supplies natural gas to more t= han 500,000 residential and business customers in Oregon and Vancouver, Was= h. Portland General is an electric utility serving more than 1.4 million cu= stomers in Oregon. The deal would bring together two Oregon utilities whos= e executives and employees know each other well. Richard G. Reiten, Northwe= st's chairman and chief executive, was president and chief operating office= r of Portland General between 1989 and 1996, and also served on its board. = By buying a utility, Northwest would hope to have more bargaining power in= its gas purchases, enabling it to buy more product and store it when price= s are cheap. A deal would be accretive to Northwest's earnings, people fami= liar with the matter say. And the financial risk for Northwest Natural is s= omewhat muted because Enron is helping to facilitate and finance the transa= ction by agreeing to take common stock and convertible preferred stock in N= orthwest Natural in addition to cash. Northwest Natural would finance the t= ransaction with debt and equity offerings. Shares of Northwest Natural wer= e trading up $1.04 at $25.99 in 4 p.m. composite trading on the New York St= ock Exchange, while Enron stock was down 39 cents a share at $33.10. For E= nron, a deal with Northwest Natural would be the latest twist in a five-yea= r ordeal that was supposed to help the nation's biggest energy trader break= into California's deregulating electricity market. But the utility busines= s proved less valuable than anticipated when Enron was prevented from selli= ng off utility contracts that enabled it to buy electricity cheaply. And Ca= lifornia's market developed serious problems last year that made it a less = attractive place for Enron to do business. Enron, which also owns a major = gas-transmission pipeline system, has a history of buying assets and busine= sses, learning what it can from them, and then selling off the bulk of phys= ical assets so it can reinvest capital elsewhere. It isn't clear where Enr= on will put the capital to work that it garners from the sale. Its broadban= d telecommunications business is in the doldrums and it recently said it wo= uld invest $250 million in it this year, down from a formerly projected $75= 0 million. =09 =09 =09 =09

WSJ Article on Enron/Portland General Sale to Northwest Natural

In order to bring better legal coordination and standardization to Enron's Risk Assessment and Control (RAC) group, we have formed a new legal group, which will initially include Lisa Mellencamp (Finance), Marcus Nettelton (Power Trading), Carol St. Clair (Broadband/Power Trading), Mary Cook (Financial Swaps), Peter Keohane (Canada), Ed Essandoh (Retail), Paul Darmitzel (Retail) and Elizabeth Sager (Power Trading) (Team Leader). This group will focus on, among other things, managing Enron's exposures with bankrupt counterparties, working out credit solutions with distressed counterparties and standardizing our overall credit practices. The initial members in this group have been drawn from Enron's numerous legal groups in order to gain a broader perspective. Each of these members will provide support to this new group in addition to their current responsibilities. Within RAC, Michael Tribolet will focus on distressed counterparties, in conjunction with Bill Bradford, who continues to manage the Credit Risk Management group. Please join us in supporting the efforts of this new group.

New Legal Team to Assist RAC

As an Enron employee who is a member of the United Way Young Leaders, please join other young leaders throughout Houston for a celebration on October 10. The attached invitation provides all the details. With Enron having the second largest campaign in Houston raising a total of $6 million dollars with the corporate match, it would be great if we could have Enron represented in a big way. The RSVP deadline has been extended to Monday, October 8, so if you pland to attend, please send a response to youngleaders@uwtgc.org or call 713/685-2306. Thank you and we look forward to seeing you there.

United Way Young Leaders

Paul, in comparing freight rates for Med vs Caribs and Caribs vs Caribs (cargo size), I do see Bo's point. For smaller lot sizes (8,600 - 11,800 MT), the rates are abt. : $50 - $60 W. Africa to Med and $60 - $80 W. Africa to Caribs however, the larger cargoes (20,000 - 30,000 MT) curently moving are as follows: $30 - $40 W. Africa to Med and $40 - $60 W. Africa to Caribs So, in comparison to the Med, the additional freight incurred on moving a 8,600 MT cargo to Puerto Rico vs a 20,000 MT cargo to the Med is $40.00, or for an 11,800 MT cargo $20.00. Granted, these are not negotiated numbers, so they could be slightly better. Let me know your thoughts. Just keep in mind that PDVSA is there to supply an October cargo at +7. I would hesitate to purchase from an alternative source lest they back off on other negotiations. Best regards,

Freight Rates - West Africa - Med / Caribs

POSREP HOEGH GALLEON, DATE: May 2nd. 1200lt. A) Position at noon : N 36 13 W 003 15 B) Dist. from last noon : 96 n. miles (6 hrs. only) C) Dist. to go to next port: 4289 n. miles D) Eta next port : Port Said 6th. 1600lt. E) 1:Average sea/weather : Wind: W 5 Sea: W 4 2:Average speed : 16,00 knots / average RPM 70,6 3:B.O.G. consumed : Nil 4:F.O. consumed : 37 5:G.O. consumed : Nil Pls. note that different in remaining dist. from pos. report 30th. April and today's report be due to sailed distance after voyage interrupted and until voyage continued. (37,5 n. miles) Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

Daily pos. report.

When: Thursday, October 11, 2001 11:30 AM-5:00 PM (GMT-06:00) Central Time (US & Canada). Where: EB 564 *~*~*~*~*~*~*~*~*~* Caminus Zai*net Risk Management Training Non-commercial (optional attendees) may not have hands-on oppurtunity, depending on number of participants. However, it may still provide you with a better understanding of the system and the risks being mitigated.

Caminus Zai*net Risk Management Training

Dear Sir's Vessel sailed from Algeciras 2nd. 0600lt (0400utc) Eta Port Said 6th. 1600hrs. lt. Statement of fact - Algeciras. 30th. Apr. 0542lt: Voyage interrupted. ROB Fo 2893mt. Go 153mt. 0730lt: Drop anchor OPL Algeciras. 0750lt: Well anchored, FWE. 0858lt: Bunkerbarge "V.B.Veronica" alongside. 0954lt: Bunkerbarge, all fast. 1036lt: Bunkerhose connected. 1130lt: Commence bunkering HFO. 1806lt: Compl. bunkering, rec. 2300mt. 1835lt: Bunker hose off. 1930lt: Bunkerbarge off. 02nd. May 0420lt: Engine tested. 0423lt: Commence heaving on anchor. 0435lt: Anchor aweight. 0600lt: Cont. sea voyage. ROB Fo 5173mt. Go 128mt. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DEPARTURE MSG.

NOTE: Reliant (Req# 42129/K# 108354) is a NEGOTIATED RATE agreement... PROCESSING TW/26819=09Reliant=0910/1/01 only=09=0910,000/d=09RP to Cen/Pan/Ward=09=09V= OID- No Capacity? ?41983/=09=09Anadarko=093/1/02-2/28/03=0919,375/d=09Variou= s RP's to MidCon =09Capacity Hold? ?42192/108378 Aquila =0911/01-3/02=09=09= 20,000/d=09NNG Oasis Waha to Demarc=09Routing 9/28??TENDERED? ?TW/24198=09Ri= chardson=0910/1-10/31/01=09=0935,714/d=09DP add Chaves=09=09EXECUTED TW/25071=09BP Energy=0910/1/01 - term=0990,000/d=09RP to Bloomfld & La Plat= a=09EXECUTED? ?TW/25374=09Oneok=09=0910/1-10/31/01=09=0913,000/d=09Panhandle= to NNG Beaver=09EXECUTED? ?TW/26758=09Duke Energy=0910/1/01 - term=0940,000= /d=09RP W Tex/Cen Pool/Panhdle=09EXECUTED TW/26819=09Reliant=0910/1/01 - term=0910,000/d=09RP to Cen Pool & Panhdle= =09EXECUTED? ?TW/27340=09Oneok=09=0910/1/01 - term=0920,000/d=09RP Volumes= =09=09=09EXECUTED TW/27340=09Oneok=09=0910/01-10/31/01=0920,000/d=09RP to W Tex & Cen Pool=09= EXECUTED? ?TW/27342=09Sempra=09=091/02-12/02=09=0930,000/d=09Ignacio to Blan= co=09=09EXECUTED? ?TW/27420=09WTG Gas Mtkg=0910/01-11/30/01=091,480/d=09Panh= andle to WTG Winkler=09EXECUTED? ?TW/27496=09Reliant=0910/01-10/31/01=0930,0= 00/d =09S Juan to Bloomfld=09=09EXECUTED? ?TW/27708=09Duke=09=0910/01-10/31= /01=0910,000/d=09Bloomfld to Topock-LFT=09EXECUTED? ?TW/27714=09PPL Energy= =0910/01-10/31/01=0920,000/d=09Griffith to Topock=09=09EXECUTED?-----------=

October 1st Contract Status (as of September 28th @ 5 pm - FINAL)

The purpose of this email is to remind you of your stationary orders from last week. We have yet to receive approval for part or all of your respective orders. Please approve and fax your proofs back to 713-646-2507 so we may expedite your order. If you need a proof, please reply to this message with a valid fax number. Thank you for your time. Mark

Oustanding Stationary Orders

Transwestern's average deliveries to California were 917 MMBtu/d (84%), with San Juan lateral throughput at 854 MMBtu/d. Total East deliveries averaged 485 MMBtu/d. El Paso's average deliveries to California were 2020 MMBtu/d (69%): - PG&ETop, capacity of 1140 MMBtu/d, deliveries of 627 MMBtu/d (55%) - SoCalEhr, capacity 1250 MMBtu/d, deliveries of 939 MMBtu/d (75%) - SoCalTop, capacity 541 MMBtu/d, deliveries of 454 MMBtu/d (84%) Friday's posted Gas Daily prices: SoCal gas, large pkgs 1.795 (-.145) PG&E, large pkgs 1.695 (-.31) TW San Juan 1.37 (-.145) TW Permian 1.635 (-.22) Enron Online bases: Nov-Mar Apr-Oct Perm-CA .185 (+.015) .24 (-.02) SJ - CA .27 (+.01) .485 (-.055) SJ-Waha .12 (+.01) .28 (+.01) Perm-Waha .035 (+.015) .035 (+.005)

California Capacity Report for Week of 9/17-9/21

Miguel, As we analyze what and how to deal with your next cargo requirements, we need the following information: - Current levels of inventory at Procaribe, broken down between your own and Eco's product - projected as of end of September (please provide basis; i.e., levels of as of the actual date that you provide data plus your projections through end of the month on withdrawals/uses) - Projected sales volumes for the months of October, November, December and January of next year, including (and this is very critical!) the basis for your projections. I am going to be interested in looking at your assumptions for both Progasco (now Tropigas) and Empire volumes, if any. - Please ensure that your San Juan Gas volumes have been signed off by Federico. We need this data as soon as you can so that we can begin to look at cargo options and/or evaluate the decision to borrow from Eco. Thanks and Regards, Mariella Paul, Believe it or not (yes, call me crazy! ), I went home last night and continued to study the examples of hedging you were so kind to walk us through and arrived at the following conclusions, which I would like for you to correct me on and/or confirm my thought process. - First, given the added uncertainty of Procaribe's volumes (sales) now that Progasco is owned by someone else, unless Miguel can guarantee (through some form of written agreement) that he will have Progasco's volumes, I think we should be more open to or more inclined to borrow Eco's volumes (clearly, we wouldn't do so if the curve looks awful - then it becomes an issue of cash flow vs. product pricing optimization). - Second, it seems to me that you wouldn't me too inclined to try to fix the cost of your product bought from, say, PDVSA, unless you are very concerned about an increasing curve (right around the 3 days surrounding the bill of lading) that will not necessarily stay long enough to keep your "sales" curve up to guarantee a margin. In fact, you would likely wait and continue to watch the curve and either not act at all or act shortly before the bill of lading dates. Now, in your May hedging example, if you actually compare the hedged vs. non-hedged results, it tells you that you were better off with a no hedge on the earlier months (month for which data on the revenue side was known and most of the curve deciding your price to PDVSA was also known). Then, my question is: why did we decide to hedge that volume when the hedge was put in place on 5/9, only a week or so before the actual bill of lading date? Do you remember what was concerning us? - Third, it seems to me that, on the May hedge, (the second part of the volume) someone lost big time - I could be wrong, but what I'm looking at is the fix we got (Suzanne got) in return for the floating; the fix rate was much higher than the actual MBv figures for the months of June and July (this assumes of course the Enron didn't turn around and laid off that risk on someone else). What I am trying to say is that, there appears to have been something going on with the curve on or around 5/21 that changed dramatically once actual figures were recorded. Do you remember? - Fourth, it seems to me that your swaps were being built around a primary objective (beyond risk protection): to deliver approximately 5 cents per gallon margin to Miguel. Anytime we have that opportunity, we should grab it. That's all for now - - I'll keep studying this ... What I am trying to do is draw some conclusions as to the circumstances under which we will want to swap the purchase cost (it's clear to me that, most of the times, once you know what your cost is, you will try to lock in your margin by doing a swap using your revenue stream; i.e., the Mbv basis). Thanks again for all your time and patience.

Procaribe's next cargo

I have updated the TW on call schedule to include Mark and Paul. Please let me know if anyone has a conflict. (I left the holiday weekends as they were.) Lorraine

On Call Schedule

Friend: A touching original poem below. Also I ask you to visit the website "www.marvelicious.com/911.html" for some heart-rendering music, poems & comments and pictures. God bless. Best regards from Tushar Dhruv ext. 3-5336. REPUBLICAN DEMOCRAT WHITE BLACK LATINO ASIAN MAN WOMAN OLD YOUNG BAPTIST CHRISTIAN JEW MUSLIM WE, THE PEOPLE (Courtesy of GenieRich) ~~Two Thousand One, Nine Eleven~~ Two thousand one, nine eleven Five thousand plus arrive in heaven As they pass through the gate, Thousands more appear in wait A bearded man with stovepipe hat Steps forward saying, "Lets sit, lets chat" They settle down in seats of clouds A man named Martin shouts out proud "I have a dream!" and once he did The Newcomer said, "Your dream still lives." Groups of soldiers in blue and gray Others in khaki, and green then say "We're from Bull Run, Yorktown, the Maine" The Newcomer said, "You died not in vain." From a man on sticks one could hear "The only thing we have to fear. The Newcomer said, "We know the rest, trust us sir, we've passed that test." "Courage doesn't hide in caves You can't bury freedom, in a grave," The Newcomers had heard this voice before A distinct Yankees twang from Hyannisport shores A silence fell within the mist Somehow the Newcomer knew that this Meant time had come for her to say What was in the hearts of the five thousand plus that day "Back on Earth, we wrote reports, Watched our children play in sports Worked our gardens, sang our songs Went to church and clipped coupons We smiled, we laughed, we cried, we fought Unlike you, great we're not" The tall man in the stovepipe hat Stood and said, "don't talk like that! Look at your country, look and see You died for freedom, just like me" Then, before them all appeared a scene Of rubbled streets and twisted beams Death, destruction, smoke and dust And people working just 'cause they must Hauling ash, lifting stones, Knee deep in hell But not alone "Look! Blackman, Whiteman, Brownman, Yellowman Side by side helping their fellow man!" So said Martin, as he watched the scene "Even from nightmares, can be born a dream." Down below three firemen raised The colors high into ashen haze The soldiers above had seen it before On Iwo Jima back in '44 The man on sticks studied everything closely Then shared his perceptions on what he saw mostly "I see pain, I see tears, I see sorrow - but I don't see fear." "You left behind husbands and wives Daughters and sons and so many lives are suffering now because of this wrong But look very closely. You're not really gone. All of those people, even those who've never met you All of their lives, they'll never forget you Don't you see what has happened? Don't you see what you've done? You've brought them together, together as one. With that the man in the stovepipe hat said "Take my hand," and from there he led five thousand plus heroes, Newcomers to heaven On this day, two thousand one, nine one eleven AN ORIGINAL POEM AUTHOR UNKNOWN

An Original Poem

Juantongia, per our conversation on this morning, you were unable to move Paul Y'Barbo's old extension over from the 3AC to the Enron building. Because of this, we request you delete the old extension (x55855). Paul will keep the new extension (x54173). Thanks in advance for your patience and assistance. Paul will leave a voicemail on the old extension (55855) informing callers of his new extension. We are aware that this recording will remain for one month and will be deleted afterwards. adr

Phone Request

Welcome to the Newsletter for Users of the Brown Edition of MarketBrowser! The Brown Edition of MarketBrowser has been designed to be the perfect companion to Brown & Co., enabling you to research and monitor stocks and funds with unprecedented ease and convenience. In our effort to help you make the most out of your Brown MarketBrowser we will be offering useful tips and techniques in our newsletters. In this first issue: Window management One-Click Access MarketBar View

MarketBrowser Newsletter for Brown Users

A couple of fyi items: SoCal's balance was 151,133 mmbtus at 8/31/01. Their balance is 300,521 mmbtus at 9/23/01. We have received 33,130 mmbtus in payback from Williams through the 23rd which has decreased their balance to 242,260 mmbtus. PG&E Topock's balance is 69,727 mmbtus due TW as of 9/23/01. The index has decrease by about eighty cents during September which will cause a loss on volumetric oba's.

TW imbal summaries

Greg, Attached is the language that Dan Masters, Gene Massey, and I have come up with that could be included in the SPA that you are currently negotiating. All of the details would be hammered out in the proposed fuel supply contracts mentioned in the attached document. Those LNG and LPG supply contracts will be lengthy documents. I would expect them to be 30 to 60 pages in length.

Future Fuel Sales to EcoElectrica by Enron

For those of you that do not know, Eco should have been receiving credit for volumes of vapor returned to Cabot's vessels during unloading. I have recalculated the sheet sent earlier using the formula that CMS uses at its LNG unloading facility in Lake Charles. This yields a slightly better result than we had. I have also put in the correct dollar figures, as the prior sheet used the 2001 standard commodity charge only as opposed to the 2000 commodity charge and the Winter Cargo charge for the corresponding shipments. I plan on calling Cabot today to start the process of getting a credit for the return vapors on these shipments. Cabot will probably resist giving us the credit until we straighten out the sampling process at Eco, as they will be wanting credit for the proper amounts unloaded (we have been using load quality analysis for custody transfer due to problems with Eco's sampling system). I will work with Cabot to get the credit as soon as possible. After we get them to agree to the formula to use, we will give it to the independent inspector so that they can calculate it on future cargoes. Dan

Vapor return on unloading at Eco

PRC TIME IS HERE!! There has been a very significant and positive change in the PRC Process! Your employee profile will now be viewed during PRC Meetings where you are represented. Therefore, it is very important that you update your information in the eHRonline system before May 25, 2001. Instructions on updating info. in eHRonline: To get into the eHRonline system pull up the Enron Home Page and click on eHRonline.enron.com. Your user name is your P# (i.e. P########) and your pass word is your designated eHRonline pass word (if you don't know this call 5-4727). Once in eHRonline click on Profile Information and update the areas that are incorrect. If you have questions please call me @ 3-6019. Please forward this message to anyone who was not included in the distribution.

eHRonline profile

During a recent review of Enron's High-rise Fire Evacuation Plan, the City of Houston Fire Department noted that several of our floors did not have the required number of trained Fire Wardens. I need your help. If you are a full-time Enron employee, please consider being a Fire Warden for your floor. Newly designated Fire Wardens must complete a two-hour certification training sponsored by the Fire Marshall's Office on Thursday, Nov. 15. Please contact Monica Rodriquez (x35393) or Harry Grubbs (x35417) to participate as an Enron Fire Warden. Thank you for your commitment to safety in our workplace. Stan Fire Wardens are needed on the following floors: Building Floor Number of Wardens Needed Three Allen Center 3 2 Three Allen Center 9 1 Three Allen Center 17 2 Three Allen Center 19 2 Three Allen Center 21 2 Three Allen Center 33 3 Enron Center North 2 4 Enron Center North 8 1 Enron Center North 9 2 Enron Center North 13 2 Enron Center North 14 1 Enron Center North 24 1 Enron Center North 32 4 Enron Center North 43 2 Enron Center North 45 2 Enron Center North 46 4 Enron Center North 50 1 Enron Center North 50-M 4 Enron Center North B-2 3

Enron Fire Wardens Needed

Hi Paul, Attached is your confirmation for the Sempra Customer Appreciation meeting in Las Vegas. I have also mailed a hard copy with brochures for the hotel, golf course, and spa. Thanks, Shannon

Las Vegas - Confirmation

Transwestern's average deliveries to California were 908 MMBtu/d (83%), with San Juan lateral throughput at 867 MMBtu/d. Total East deliveries averaged 536 MMBtu/d. El Paso's average deliveries to California were 2103 MMBtu/d (72%): - PG&ETop, capacity of 1140 MMBtu/d, deliveries of 723 MMBtu/d (63%) - SoCalEhr, capacity 1250 MMBtu/d, deliveries of 945 MMBtu/d (76%) - SoCalTop, capacity 543 MMBtu/d, deliveries of 435 MMBtu/d (80%) Friday's posted Gas Daily prices: SoCal gas, large pkgs 2.955 (-.075) PG&E, large pkgs 2.855 (-.165) TW San Juan n/a TW Permian 2.78 (-.08) Enron Online bases: Dec-Mar Apr-Oct Perm-CA .14 (-.03) .28 (+.02) SJ - CA .26 (-.01) .49 (+.05) SJ-Waha .16 (+.02) .25 (+.03) Perm-Waha .04 (even) .05 (+.01)

California Capacity Report for Week of 10/29-11/2

TK and Paul, Attached is our offer to renew our expiring transportation space on TW. Please call if you have any questions. Susan <<TWOffer.doc>> PG&E National Energy Group and any other company referenced herein that uses the PG&E name or logo are not the same company as Pacific Gas and Electric Company, the regulated California utility. Neither PG&E National Energy Group nor these other referenced companies are regulated by the California Public Utilities Commission. Customers of Pacific Gas and Electric Company do not have to buy products from these companies in order to continue to receive quality regulated services from the utility.

November 2, 2001

Hi there! I got your message on your marriage! CONGRATULATIONS! I'm so happy for you. Can you meet for lunch today? Let me know. Wed and Thurs are not good for me and I'm out on Friday. So if today is not good maybe sometime next week. Talk to you later.

Hi!

Hello Paul, My name is Joelene Whittaker and I am a recruiter with STM Associates. DTE Energy, www.dtecs.com/sitemap.html, has retained us to assist them in placing two Director of Sales for Eastern and Western Regions. The Eastern position will be located in Ann Arbor, Michigan and the Western position in Denver, Colorado. Both Director of Sales will report to the Vice President of Sales. Qualifications of this position include a minimum of 5 years of sales experience and an additional minimum of 2 years experience with a trading company is preferred. The successful candidate will have a strong understanding of U.S. Coal, Transportation and Electric Utility industries, including coal tolling, marketing and origination functions used in support of coal trading operations. Solid experience in finding ways to capitalize on opportunities in the coal and transportation business is a must. A background which includes Senior-level contract negotiations is required. We are asking for recommendations from coal trading executives within the energy industry. Would you take a moment to consider colleagues whose experience fits DTE's profile and who you would deem as a high caliber candidate for the position. I appreciate any help you may provide and look forward to hearing from you. I can be reached at (801)531-6500 or via e-mail jwhittaker@stmassociates.com. Regards,

STM - Sales Director Referrals

Kim would like the Marketing Team to meeting with Steve to discuss the above mentioned topic, Friday morning, November 16, 9:00 a.m., ECN-1336. Please mark your calendars accordingly. adr

Capacity Available - Team Discussion

Dear MarketBrowser User: If you like MarketBrowser, you'll love MarketBrowser Pro! Leading Market Technologies is pleased to offer you a 14-day no-obligation free trial of MarketBrowser Pro. You already know that MarketBrowser gives you unprecedented convenience to monitor your investments. Step up to the next level of features and functionality --

Your MarketBrowser License

Hello Paul - per our conversation yesterday, we are trying to schedule a meeting with Oil Tanking to discuss ProCaribe and their potential interest in it. We have set Tuesday of next week (12-3 pm) at their offices. Please let me know if that still works for your schedule. Thanks, Brian

ProCaribe

Lorraine and Paul: Greetings. Our first invoice under our new firm transportation agreement is incorrect. I have asked our accounting people to call Laura Giambrone to discuss but wanted to bring this to your attention in case she needs your assistance to understand the terms of our deal. The invoice includes a "reservation" charge equal to the October MDQ times the number of days in the month times the discount rate, which is correct (35,000 x 31 x $0.08 = $86,800). However, the invoice also includes a "commodity" charge of $3,945.47. I believe it is just a matter of setting it up correctly in the computer because the invoices we received under our old contract also included a "reservation" charge and a "commodity" charge, but the two together equaled the negotiated rate. I would appreciate any help you could provide to get this set up correctly and our October invoice corrected. Thanks,

Oct. Invoice

When: Friday, November 09, 2001 1:30 PM-2:30 PM (GMT-06:00) Central Time (US & Canada). Where: 4052 *~*~*~*~*~*~*~*~*~* Note: This presentation will be repeated on Monday 11/12/2001 from 10:30 - 11:30 am. You will receive that appointment also. Please accept the time that best fits your schedule. If you have any questions or need to schedule another time please give me a call. Bobby Mason

Pipeline Profile, Dashboard Alerts Testing Presentation

When: Monday, November 12, 2001 10:30 AM-11:30 AM (GMT-06:00) Central Time (US & Canada). Where: 4048 *~*~*~*~*~*~*~*~*~* Note: You should have received an invitation to this presentation for Friday 11/09/2001 from 1:30 - 2:30 pm in room 4052. Please accept the time that best fits your schedule. If you have any questions or need to schedule another time please give me a call. Bobby Mason

Pipeline Profile, Dashboard Alerts Testing Presentation

When: Tuesday, November 13, 2001 1:00 PM-2:00 PM (GMT-06:00) Central Time (US & Canada). Where: 4048 *~*~*~*~*~*~*~*~*~* Note: This presentation will be repeated on Monday 11/12/2001 from 10:30 - 11:30 am. You will receive that appointment also. Please accept the time that best fits your schedule. If you have any questions or need to schedule another time please give me a call. Bobby Mason

Updated: Pipeline Profile, Dashboard Alerts Testing Presentation

In its preliminary notice of November maintenance, El Paso had scheduled Lines 1300 and 1301 on the San Juan Crossover for total shutdown Nov. 29-30. It said Wednesday the shutdown has been delayed to coincide with the Dec. 1-2 weekend, when all 650 MMcf/d of the crossover's capacity will be cut to zero. Portions of Line 1300 will be shutting down Dec. 11-12 and Dec. 18-19; capacity cuts then will be 60 MMcf/d.

El Paso Maintenance on Lines 1300 and 1301 on San Juan Crossover

NGI's Daily Gas Price Index published : November 13, 2001 Watson: Enron Upside 'Clearly Worth Doing the Deal' Dynegy CEO Chuck Watson told the investment community Monday that he was "90% sure" that the risk/reward ratio in the planned merger with Enron Corp. made it "clearly worth doing the deal," because the issues that decimated the former market leader were with its non-core businesses. Explaining that his team had "adequately bracketed the downside," as the deal fell together over the past few weeks, Watson said he could not be "99% positive," but noted that the upside was "substantial," and said he had a "good deal of confidence...that we'll be absolutely fine here." Dynegy, which announced a $22 billion cash, stock and debt deal with its downtown Houston rival on Friday night, joined with Enron executives including Chairman Kenneth Lay on Monday to answer as many questions as they could in about 90 minutes. If all goes to plan, the two companies would become Dynegy Inc. by the third quarter of 2002, the clear leader in natural gas and power marketing. In the second quarter 2001, Enron and Dynegy combined sold a total of 36.2 Bcf/d of gas, which represented 21% of the volumes sold by the top 20 gas marketers in North America (168.9 Bcf/d), according to a ranking by NGI. Enron was the top gas marketer with 25.3 Bcf/d and Dynegy was No. 6 with 10.9 Bcf/d. Statistics provided by Maryland-based Energy Performance Review (EPR) show that Enron and Dynegy combined sold 143,824 million kWh of power in the second quarter. That total represented 14% of the power sold by the top 20 largest power marketers (1,000,961 million kWh), according to EPR. Enron was in fifth place among power marketers with 73,724 million kWh sold, while Dynegy was in sixth place with 70,100 million kWh. The blending of the two will not come without challenges, but Watson stressed he expects to see more opportunities than problems. The opportunity appears to have come none too soon for Enron. Greg Whalley, Enron's president and a future member of Dynegy's executive team, confirmed that without some kind of equity investment in the company, the once market leader probably could not have sustained its liquidity through the rest of this year. "We definitely needed to raise some type of equity capital," said Whalley. "Under normal market conditions, we would have had adequate liquidity. This was not normal for Enron. We would not have had liquidity to the end of the year." Asked about asset sales in anticipation of meeting federal requirements to merge, executives acknowledged there would be some, but did not elaborate. Whalley said that from an "Enron perspective, we have not spent a lot of time with Dynegy people to agree on a plan. Chuck (Watson) has to clear what is core to Dynegy. There are several (assets for consideration to sell) on the list." Enron Chairman Kenneth Lay, who will not be part of the management team, but may hold a place on the Dynegy board of directors, added that Enron already has $4 billion in sales under contract, all expected to close by the end of 2002. "We also have three other significant international assets under contract," said Lay, referring to the among other things, the Dabhol power plant in India. Once the merger of Dynegy with Enron is successfully completed, the new Dynegy will become the "primary market player in all markets," but there will be a significant difference in how the company moves forward, noted Dynegy CFO Rob Doty. Enron's financial-backed trading strategy will merge with the "strong asset base" of Dynegy's. Dynegy has protected itself on the downside, however. The deal includes an out for Dynegy if Enron's legal liabilities exceed $3.5 billion. Asked about the possibility that some of Enron's marketing and trading team may desert the company for another company, Watson, stressing that teamwork will be the guiding force going forward, said, "if I were in this industry, this is the combination I'd work for. This is an exciting day here. It's been an exciting couple of weeks" creating a "platform for something really special in the future." Enron's Whalley said that he believes the company will keep most of its team intact. "They're accustomed to being part of a winning deal," he said, and "going forward, they will be very pleased with the additional infusion of equity and the stability in the marketplace." As of Monday morning, Whalley said that "activity looks pretty good," and said there had been a positive reception to the merger. "Right now, people are pleased with the introduction of new liquidity, and really want to go about establishing or re-establishing the energy franchise." Dynegy President Steve Bergstrom agreed. "Most traders want to be part of a winning team. This is a combination that will be a winning team. We have similar issues there as well. The 'A' players will stay around to be part of the winning team." Bergstrom explained that when the merger is complete, the new Dynegy will become the "primary player in all markets." He said Dynegy has a "more asset-backed strategy," adding that he has said before that "you can only have one market maker and Enron clearly was it." By combining the two companies, there will be a blend of Dynegy's asset strategy with Enron's "financial skill set," giving the new entity "more liquidity market-making than Dynegy itself has historically done." Added Watson, "both companies had a successful ratio and nothing is going to change there...I'm a strong believer in teams and the team concept. I don't want to see individuals do well if the company doesn't do well. It (will be) imbedded in the whole company." Ben Schlesinger, whose company Schlesinger & Associates analyzes the energy industry, said Monday that the big problem in the merger is "whether these two companies are able to pull together...to harness what's there." He said the "two parties are clearly leaders," but theoretically, they will have to streamline their operations. "Both books are fairly strong," he said, and once their efficiencies are put together, the new company will offer "stable returns." In the "very short term," however, Schlesinger said there will be moves to other traders. Other analysts also seemed to be throwing support behind the merger. UBS Warburg reiterated its "strong buy" rating on Dynegy, noting that "if successfully executed, this transaction would yield the most widely recognized, respected and downright credible wholesale/retail energy merchant in the world." However, UBS warned that Dynegy still faces a "daunting" task in merging the operations and employees. "We are not naive in underestimating the enormous challenge at hand. In the near-term, Enron must remain highly liquid, investment grade and its employees must remain focused on keeping its core wholesale/retail franchises up and running." Merrill Lynch's Donato Eassey reiterated the "buy" on Dynegy and "moving to no opinion" on Enron. He said, "Dynegy has all the necessary skill sets and as importantly, the financial stability, resources and investor confidence and experience to get the job done...Enron's unparalleled online trading business should translate to significant prospects for the new Dynegy." Curt Launer, an analyst with Credit Suisse First Boston, added that despite the size of the new company, "we do not expect major divestitures or closing issues because of the lack of asset concentration and the inherent competitiveness of the natural gas and power marketing business." He noted too that with the combination, "we have modeled a merchant unit that does 25% less business," because of "cross trading between them and some expectation of a loss of market share." Still, Launer said Dynegy would become a "formidable competitor" benefiting from a market share in excess of 20% of U.S. natural gas and power trading markets." As expected with most major merger announcements, Moody's Investors Service placed the ratings of Dynegy and its subsidiaries under review for possible downgrade, noting that "notwithstanding the franchise benefits of the proposed merger, the financial and business risks associated with the transaction could negatively impact Dynegy's credit fundamentals." The review affects about $4 billion of Dynegy securities, including its subsidiaries Illinova Corp. and Illinois Power Co. In its rating review, Moody's said it will "assess Dynegy's plans to meet the liquidity needs of the combined entity and to deal with the uncertainty surrounding Enron's off-balance sheet transactions and contingent risks...and examine the ultimate structure of the transaction, and its impact on Dynegy's financial leverage and on management's targeted debt levels." The ratings service also plans to "consider the governance framework within which the combined trading activities will operate." Ratings under review are: Dynegy's Prime-3 rating for commercial paper; Dynegy Holdings' Baa2 senior unsecured debt rating and its Prime-2 rating for commercial paper; Illinova Corp.'s Baa3 senior unsecured debt rating; and Illinois Power Co.'s Baa1 senior secured and Baa2 senior unsecured debt ratings, and its Prime-2 rating for commercial paper. Fitch revised its rating watch on Enron's outstanding securities to "evolving" from "negative," where they were placed in late October. The rating watch evolving means the ratings may be raised, lowered or maintained. Fitch also placed a rating watch negative on Dynegy and Dynegy Holding's long-term credit ratings, which also means they could be lowered or affirmed. The outstanding "F2" rated commercial paper programs for Dynegy and Dynegy Holdings were not affected.

NGI's Article on the Merger

POSREP HOEGH GALLEON, DATE:08 MAY 01 A) Position at noon : N 24,7? E 36,2? B) Dist. from last noon : 371 nm C) Dist. to go to next port: 2101 D) Eta next port : 13 0900 LT E) 1:Average sea/weather : Wind: W5 Sea: W4 2:Average speed : 19.03 knots / average RPM 92.55 3:B.O.G. consumed : Nil B.O.G. Total : 4:F.O. consumed : 143 mt Brgds Knut Bentzr?d Master LNG/C "Hoegh Galleon" E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+873 330853910 Fax : Inmarsat fax no.+873 330853913 Telex : Inmarsat B telex no.+583 330853915 Telex : Inmarsat C telex no.+583 430853910 (24hrs.watch)

POSREP

Attached is an Excel spreadsheet of contract details of the TW deals we will be evaluating. There are 430 deals we will evaluate. The next step is to add price data with these details. Please let me know if you have any questions. Richard Riehm

TW Contract Data

Transportation Notes El Paso said it has become necessary to shut down Line 1600 upstream of Casa Grande Station one day earlier than previously announced. The line will be down on Nov. 15, instead of Nov. 16. Capacity of the South Mainline will be reduced by 245 MMcf/d effective for Cycle 2 on Nov. 15. The work will be completed prior to the start of the Nov. 16 gas day. El Paso also said Line 1218 downstream of Bondad Station was taken out of service for emergency repairs Wednesday reducing the capacity through Bondad Station by 190 MMcf/d. The reduction was effective for Cycle 4 and will continue through today. Line 1110 between Keystone and Pecos River Stations will be shut in for repairs on Thursday as well, reducing the capacity through Pecos River Station by an additional 40 MMcf/d to 800 MMcf/d capacity. If you have operational or scheduling questions, call your scheduling representative at (719) 520-4706. PG&E's California Gas Transmission system called a systemwide operational flow order for Thursday Nov. 15 with a 0% tolerance and $1/Dth penalties for noncompliance. The intrastate pipeline is full of gas with deliveries continuing to exceed nominations.

El Paso Maintenance Notes

Paul and Mark: Please fill out the attached Internal Security Access Request including your ID under the required information. Please return the form electronically for process. If you have any questions do not hesitate to call me at 36142. Thanks,

CAS Access Request

Transwestern's average deliveries to California were 924 MMBtu/d (85%), with San Juan lateral throughput at 849 MMBtu/d. Total East deliveries averaged 479 MMBtu/d. El Paso's average deliveries to California were 2146 MMBtu/d (73%): - PG&ETop, capacity of 1140 MMBtu/d, deliveries of 716 MMBtu/d (63%) - SoCalEhr, capacity 1250 MMBtu/d, deliveries of 985 MMBtu/d (79%) - SoCalTop, capacity 540 MMBtu/d, deliveries of 445 MMBtu/d (82%) Friday's posted Gas Daily prices: SoCal gas, large pkgs 1.94 (-.635) PG&E, large pkgs 1.855 (-.61) TW San Juan 1.62 (-.70) TW Permian 1.71 (-.70) Enron Online bases: Dec-Mar Apr-Oct Perm-CA .05 (-.03) .21 (-.02) SJ - CA .20 (even) .41 (-.03) SJ-Waha .20 (+.04) .26 (+.01) Perm-Waha .05 (+.01) .06 (+.01)

California Capacity Report for Week of 11/12-11/16

Please be informed, due to time constraints, Steve Harris' Staff meeting on December 3rd will be condensed by 30 minutes (2:30-3:00p). All reports should be abbreviated to accommodate Steve's appointments. Please mark your calendars accordingly. adr

Steve Harris' Staff Meeting on December 3rd

Over the weekend one of the Enron International data servers (EI G:\common) was scheduled to relocate to another Enron data center. Since the move of the server, the system has been experiencing a wide range of technical issues. The infrastructure team has been working around the clock to resolve these issues. This work is expected to be completed and all files accessible by end of business day Monday evening. We apologize for the inconvenience and appreciate your patience in this matter. Thank you,

EI Data Servers

I have spoken to Oman LNG about our ETA. They are unable to move forward the ship due to load after the "Hoegh Galleon". They have asked that we try to arrive as early as possible on May 13 so that departure on April 14 can be achieved. Please advise as soon as information is available on the progress of the work. Regards,

ETA to Oman

Someone was asking me the other day if I had any friends at Enron....you came to mind! Are you weathering the storm? Unbelievable is the word that comes to my mind. We use Andersen also and I know they are quite "tight lipped" about the situation! I sincerely hope everything works out for you and the other Enron employees that have done nothing more than "bust your rears" for the good of the "Big E". Stay in touch, Alton D. Heckaman, Jr. Swift Energy Company Senior Vice President Chief Financial Officer

Status

POSREP HOEGH GALLEON, DATE: 30th. 1200lt A) Position at noon : ALGECIRAS OUTER ANCHORAGE. B) Dist. from last noon : 303 N.MILES (17HRS. 42MIN.) C) Dist. to go to next port: 4422,5 N.MILES D) Eta next port : MAY 13TH. 0900LT E) 1:Average sea/weather : Wind:NE 5 Sea:NE 4 2:Average speed : 17,12 knots / average RPM 94,3 3:B.O.G. consumed : NIL 4:F.O. consumed : 111 MT 5:G.O. consumed : NIL Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT

Dear Sir's. Pls. find below daily pos. report with corrected rpm. POSREP HOEGH GALLEON 19TH. APRIL 1200LT (1600UTC) A) Position at noon : N 26 41 W 089 29 B) Dist. from last noon : 271,5 n. miles (14 HRS. )(1 HRS. ADV) C) Dist. to go to next port: 8942.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: SE 4 2, Sea: SE 3 2:Average speed : 19,39 knots / average RPM 91,87 3:B.O.G. consumed : nil 4:F.O. consumed : 75 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 20TH. APRIL 1200LT (1600UTC) A) Position at noon : N 24 00 W 081 57 B) Dist. from last noon : 440 n. miles (24 HRS.) C) Dist. to go to next port: 8502.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: E 6, Sea: E 5 2:Average speed : 18,33 knots / average RPM 91,54 3:B.O.G. consumed : nil 4:F.O. consumed : 128 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 21ST. APRIL 1200LT (1600UTC) A) Position at noon : N 24 00 W 081 57 B) Dist. from last noon : 465 n. miles (23 HRS.) C) Dist. to go to next port: 8037.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: E 6, Sea: E 5 2:Average speed : 20,22 knots / average RPM 94,59 3:B.O.G. consumed : nil 4:F.O. consumed : 128 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 22ND. APRIL 1200LT (1500UTC) A) Position at noon : N 29 05 W 068 07 B) Dist. from last noon : 436 n. miles (24 HRS.) C) Dist. to go to next port: 7601.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: ENE 6 , Sea: ENE 5 2:Average speed : 18,17 knots / average RPM 93,76 3:B.O.G. consumed : nil 4:F.O. consumed : 161 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 23RD. APRIL 1200LT (1400UTC) A) Position at noon : N 29 42 W 062 33 B) Dist. from last noon : 294 n. miles (17H 15M.) C) Dist. to go to next port: 7307.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: ENE 6 , Sea: ENE 5 2:Average speed : 17.04 knots / average RPM 91,56 3:B.O.G. consumed : nil 4:F.O. consumed : 101 mt. 5:G.O. consumed : 1.0 mt 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT - CORRECTION'S

Dear Sir's 30th. 0542lt. Voyage interupted. 0730lt. Drop anchor off port limit Algeciras. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

ARRIVED ALGECIRAS

Paul, I'm with Enron Middle East in Dubai. Would just like to know if you are now using the celfone from Dubai office that was assigned to Tod Peterson (971 50 6552631). If so, can you provide us your expense cost center. Thanks for your reply.

Dubai celfone

POSREP HOEGH GALLEON, DATE: 29TH. APRIL 1200 LT. A) Position at noon : N 35 17 W 011 53 B) Dist. from last noon : 447 N.MILES C) Dist. to go to next port: 4725,5 N.MILES D) Eta next port : MAY 13TH. 0900 LT. E) 1:Average sea/weather : Wind: NE 5 Sea: NE 4 2:Average speed : 18,63 knots / average RPM 93,88 3:B.O.G. consumed : NIL 4:F.O. consumed : 149 5:G.O. consumed : NIL ETA ALGECIRAS 30TH. 0700 LOCAL TIME. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT

Dear Sir's Vessel Hoegh Galleon/C6QB8 ETA Qalhat now 13th. May 0900 local time, Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

ETA NOTICE.

POSREP HOEGH GALLEON, DATE: A) Position at noon : N 34 19 W 020 54 B) Dist. from last noon : 412 (22 HRS.) (CLOCK ADV. 2 HRS.) C) Dist. to go to next port: 5172,5 N.MILES D) Eta next port : MAY 13TH. 0900LT E) 1:Average sea/weather : Wind: E 5 Sea: E 4 2:Average speed : 18,73 knots / average RPM 93,61 3:B.O.G. consumed : NIL 4:F.O. consumed : 142 MT 5:G.O. consumed : NIL 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT

Victor, As discussed, we need to engineer a tie-in to Peerless so that we have a way to periodically turnover (by selling) our fuel oil inventory to before it goes bad. James McMillan will forward to you a scope of work and cost for an engineer to go to site to develop the tie-in design. This cost should be between $5 and 10K. Once finalized, please issue an Eco PO to perform this work. Rick

Fuel Oil Tie-in to Peerless

PLEASE NOTE THE FOLLOWING CHANGES TO THE PROJECT LIST FOR LNG PROJECTS NEW PROJECT: PROJECT NAME # DESCRIPTION 1. WEST COAST DEVELOPMENT C00597201XX TO RECORD TIME AND EXPENSES FOR DEVELOPMENT ACTIVITIES RELATING TO CALIFORNIA AND MEXICO 2. ELBA ISLAND MARKETING EFFORTS C00597301XX TO RECORD TIME AND EXPENSES RELATING TO MARKETING EFFORTS CHANGES TO EXISTING PROJECTS: HOEGH GALLEON MERCHANT ACTIVITIES AND SPOT SALES PROJECTS ARE NOW COMBINED. PLEASE USE E.00017601XX FOR CODING TIME AND EXPENSES. PLEASE NOTE THAT SPOT SALES PROJECT # E.00077201XX WILL NOT ACCEPT ANY CHARGES . DOM REP C00099002XX IS CLOSED AND WILL NOT BE ACCEPTING ANY CHARGES GOING FORWARD. IF YOU HAVE ANY QUESTIONS , PLEASE FEEL FREE TO CALL: BARBARA GARCIA 54369 ROBERT WINGENTER 54370 SHILPA KADAKIA 54502 FOR CODING TODAY'S TIMESHEET, PLEASE NOTE THESE CHANGES. SHILPA

New project Codes for LNG

. Company Profile 2002 International Energy Consultants Dear Colleague: We are currently verifying company and people information for our 2002 Purvin & Gertz, Inc. records. Fill in the designated areas to enable us to ensure that our 2002 database is accurate and concise for our essential day-to-day business operation. Name: Title: Company: Address: City: State: Telephone: Fax: Email Address Any amends or additions you have, you can either email it to me at cmaliaga@purvingertz.com or fax at 713-331-4000. Sincerely,

Purvin & Gertz Update

Dear Sir's Could you please adv. if the stop in Algeciras now are "official". The reason why I ask is that I have to notify Qalhat LNG Terminal if ETA change more than 12 hrs., and so far I have not informed them. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

STOP IN ALGECIRAS

POSREP HOEGH GALLEON, DATE: APR. 26TH. 1200HRS. LT. A) Position at noon : N 32 30 W 037 41 B) Dist. from last noon : 422 N.MILES (23 HRS) C) Dist. to go to next port: 6020,5 N. MILES D) Eta next port : MAY 13TH. 0900LT (QALHAT) E) 1:Average sea/weather : Wind: E 5 Sea: E 4 2:Average speed : 18,35 knots / average RPM 93,68 3:B.O.G. consumed : NIL 4:F.O. consumed : 143 5:G.O. consumed : NIL 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : ETA Qalhat changed due to stop in Algeciras. ETA Algeciras 30th. April 0500lt. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT

Attached for your use in pricing deals and in minimizing Enron's U.S. taxable income is a set of U.S. tax guidelines for the activities of Enron LNG Marketing LLC. As guidelines the outline covers most situations, but not all. One of the critical matters the outline does not cover is local country taxes and tariffs and customs. Accordingly, while I trust the guidelines will be helpful to you, please don't use them as an excuse for not being neighborly and calling or dropping by to say hi on your transactions. Please pass the guidelines on to anyone I may have missed on the distribution list that can benefit from them. Best regards to all,

Enron LNG Marketing LLC US Tax Guidelines

Dear Sir's Pls. find attached voyage report from voyage 001 loaded. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch) - VOYREP 001L.xls

VOYAGE REPORT

Dear Sir's. Now all should be OK. POSREP HOEGH GALLEON 19TH. APRIL 1200LT (1600UTC) A) Position at noon : N 26 41 W 089 29 B) Dist. from last noon : 271,5 n. miles (14 HRS. )(1 HRS. ADV) C) Dist. to go to next port: 8942.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: SE 4 2, Sea: SE 3 2:Average speed : 19,39 knots / average RPM 91,90 3:B.O.G. consumed : nil 4:F.O. consumed : 75 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 20TH. APRIL 1200LT (1600UTC) A) Position at noon : N 24 00 W 081 57 B) Dist. from last noon : 440 n. miles (24 HRS.) C) Dist. to go to next port: 8502.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: E 6, Sea: E 5 2:Average speed : 18,33 knots / average RPM 91,55 3:B.O.G. consumed : nil 4:F.O. consumed : 128 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 21ST. APRIL 1200LT (1600UTC) A) Position at noon : N 24 00 W 081 57 B) Dist. from last noon : 465 n. miles (23 HRS.) C) Dist. to go to next port: 8037.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: E 6, Sea: E 5 2:Average speed : 20,22 knots / average RPM 91,55 3:B.O.G. consumed : nil 4:F.O. consumed : 128 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 22ND. APRIL 1200LT (1500UTC) A) Position at noon : N 29 05 W 068 07 B) Dist. from last noon : 436 n. miles (24 HRS.) C) Dist. to go to next port: 7601.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: ENE 6 , Sea: ENE 5 2:Average speed : 18,17 knots / average RPM 93,76 3:B.O.G. consumed : nil 4:F.O. consumed : 161 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : POSREP HOEGH GALLEON 23RD. APRIL 1200LT (1400UTC) A) Position at noon : N 29 42 W 062 33 B) Dist. from last noon : 294 n. miles (17H 15M.) C) Dist. to go to next port: 7307.5 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: ENE 6 , Sea: ENE 5 2:Average speed : 17.04 knots / average RPM 91,56 3:B.O.G. consumed : nil 4:F.O. consumed : 101 mt. 5:G.O. consumed : 1.0 mt 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT - CORRECTION'S

Critical Migration Information: 1. Your scheduled Outlook Migration Date is THE EVENING OF : May 7th 2. You need to press the "Save My Data" button (only once) to send us your pre-migration information. 3. You must be connected to the network before you press the button. 4. If a POP-UP BOX appears, prompting you to "ABORT, CANCEL OR TRUST SIGNER" please select TRUST SIGNER. 5. Any information you Add to your Personal Address Book, Journal or calendar after you click on the button will need to be manually re-added into Outlook after you have been migrated. 6. Clicking this button does not complete your migration to Outlook. Your migration will be completed the evening of your migration date. Failure to click on the button means you WILL NOT get your Calendar, Contacts, Journal and ToDo information imported into Outlook the day of your migration and could result in up to a 2 week delay to restore this information. If you encounter any errors please contact the resolution center @ 713-853-1411

3 - URGENT - TO PREVENT LOSS OF INFORMATION

Dear Sir's Pls. find attached pump log for voy. 001. Pls. also adv. if it's necessary to send signed hard copy. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch) - Timelog.xls

PUMP LOG.

Today, Javier and I discussed the next supply cargo for ProCaribe. I am in agreement with his idea of supplying Progasco for the next six months. Also spoke with Suzanne and the bigger the cargo size the best chances of a better price. Javier and I are in agreement on a cargo size from 8,000 - 10,000 Mts with the delivery window between May 15th - May 30th. This means that we will have to return to EcoEl?ctrica between 3,000 - 4,000 Mts of borrowed propane depending on the arrival of the ship. I will travel to Houston on Monday. That same day I will meet Suzanne and she will update me on this cargo. On Tuesday, after my conference, we can also meet as well as Wednesday afternoon. Javier knows I will be in Houston. I don't foresee any problems in getting our thoughts together in ordering this cargo. Saludos

Next Supply Cargo

POSREP HOEGH GALLEON 23RD. APRIL 1200LT (1400UTC) A) Position at noon : N 29 42 W 062 33 B) Dist. from last noon : 294 n. miles (17H 35M.) C) Dist. to go to next port: 7299 n.miles (Qalhat) D) Eta next port : May 12th. 0001 local time E) 1:Average sea/weather : Wind: ENE 6 , Sea: ENE 5 2:Average speed : 16,72 knots / average RPM 93,76 3:B.O.G. consumed : nil 4:F.O. consumed : 101 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : Eta Algeciras 30th. 0500 local time. Due to broken steam exhaust pipe from main feed water pump it was necessary to stop and close down both boilers for 5 hrs. 35 min. 22nd. 1905lt. engine stoped. 23rd. 0130lt. cont. voyage. (clock adv. 2 x 40 min) Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT.

POSREP HOEGH GALLEON 22ND. APRIL 1200LT (1500UTC) A) Position at noon : N 29 05 W 068 07 B) Dist. from last noon : 436 n. miles (24 HRS.) C) Dist. to go to next port: 7593 n.miles (Qalhat) D) Eta next port : June 12th. 0001 local time E) 1:Average sea/weather : Wind: ENE 6 , Sea: ENE 5 2:Average speed : 18,17 knots / average RPM 93,76 3:B.O.G. consumed : nil 4:F.O. consumed : 161 mt. 5:G.O. consumed : nil 6:Average vapor press. Tk. 1: bar. Average liq. temp: Tk. 2: : Tk. 3: : Tk. 4: : Tk. 5: : ETA ALGECIRAS 29TH. 2000LT. Brgds Oe. Hansen Master E-mail: master.gall@hoegh.no Teleph: Inmarsat tel.no.+874 330853910 Fax : Inmarsat fax no.+874 330853913 Telex : Inmarsat B telex no.+584 330853915 Telex : Inmarsat C telex no.+584 430853910 (24hrs.watch)

DAILY POS. REPORT

If the last Hoegh Galleon cargo of this year is diverted to Puerto Rico, the economics of sending non-Cabot LNG to Puerto Rico are different than those mentioned in my prior note. Based on current prices, there is $0.7 MM of value that could be captured between Enron LNG and Eco on the diversion. This represents the price difference between what it would cost to buy back our sale to ENA at CMS and what Eco would have had to pay Cabot for a Winter Cargo. If CMS would let us out of the terminal fee or let it apply to a future delivery, that would add an additional $1 MM of value. If Cabot had to give up its Demand Charge and Demand Surcharge (hard to imagine) on the Winter Cargo, that adds another $4.7 MM. A second Hoegh Galleon cargo should add $1.5 MM but would need to be sourced from Nigeria or Algeria(???). Cabot controls the date of the Last Cargo delivered in 2001. It can be November 23-December 15 (unless another date is mutually agreeable). The date of this last delivery determines the earliest date that Eco would be able to receive the Hoegh Galleon. The earliest that Eco could receive the Hoegh Galleon should therefore be between December 20 and January 11 - depends on Cabot. Eco would be able to receive a second Hoegh Galleon cargo as soon as 29 days after the first Hoegh Galleon cargo delivery or as late as 45 days after. Two Hoegh Galleon cargoes should give Eco enough fuel (barely) to get them to the dates where they are eligible to receive the Early Spring cargo (100 days after the Last Cargo of 2001). In addition to the $$$'s available to be captured, this program removes Eco's risk of not receiving a Winter Cargo from Cabot. Economics and Timing - The amount of value to be captured is most heavily influenced by December-January NYMEX prices. These impact our cost to buy back gas at the CMS tailgate and our cost to buy the second Hoegh Galleon cargo. Our gas cost is more subject to change than is the Cabot contract price we are trying to beat. If we had a crystal ball, we would lock-in the economics of the diversion and of the purchase of the second cargo when the NYMEX bottoms-out. The front of the price curve has lost ~$1.00/MMBtu in the last 2 weeks. Where will it go from here? In order to be prepared to execute when market conditions are right, we need to get Eco on board and initiate discussions with a producer about supply for the second cargo. Also, we should talk with Gene Massey to confirm that the contract says what we think it says and to get his thoughts on what we are trying to do. I would appreciate any insights that you may have regarding this opportunity. Regards,

Update - EcoElectrica Winter Cargo

Oscar, Per our conversation, the following are the fuel management team's assumptions of fuel requirements for Eco at 100% of capacity: LNG 91,260 MMBtu/day at 507 MW Heat Rate = 7500 BTU/kwh LPG 1905 Metric Tons at 507 MW Heat Rate = 7461 BTU/kwh (Note: 522 gallons/MT , 91,300 Btu/gallon) No.2 619,000 gallons/day at 465 MW Heat Rate = 7313 BTU/kwh (Note: 131,850 Btu/gallon) Heat rates at less than 100% of capacity will be different from those at 100%. Check with Rick or Arthur regarding performance curves. Call me if you have any additional questions. Regards,

Eco Fuel Consumption

The attached spreadsheet allows you to easily calculate Eco's year-end LNG inventory for a variety of cases that vary dispatch rate, # days of outage for CT1, and number of cargoes diverted between now and year-end. Simply enter your assumption for number of days of CT1 outage in cell A16 and the number of cargoes you want to divert in cell A23. The year-end inventory is automatically calculated. A negative number means that you require more LNG than you are entitled to receive. Assuming that you want the LNG tank full at year-end: 1. Eco will be able to receive 100% of the remaining 6 cargoes if the CT1 outage is 60 days or less 2. 175 days of CT1 outage are required to result in Eco being able to divert 1 cargo and still have a full tank at year-end 3. a 60-175 day outage for CT1 results in surplus LNG but whether or not it is enough to market depends on how much the outage exceeds 60 days The above figures assume a 76% dispatch and 95% availability on days that Eco is not assumed to be in an outage. Paul

EcoElectrica LNG Requirements for Remainder of 2001

Andy, How are you doing? Will you be in John Lavorato's group or in the Power group, when we move to UBS. Also, what commodities will you be trading? Thanks,

UBS Group

Kenny - I picked up your voice mail. Apologies if this is not timely as I've been out this week. So, you may have already gotten this same info and update from Mike, but here goes. I understand that you are really wanting a push to get this deal done asap. Mike and I feel the same way as we still are very supportive of the deal and recognize the impact on momentum that extended contract negotiations can have. I would like to manage your expectations on the timing, though. As you know, we visited with Enron legal for the first time on Monday, May 21. At the end of the meeting, Enron took the to-do to cycle edits based on our commercial and business principle discussions. We received the revised contract on Monday, June 4. Realistically speaking, the contract has been rewritten. We are hopeful that the business and commercial terms that have been agreed upon are still in tact, but regardless, the new document will take us some time to digest, reflect, and comment. Mike, Mark, and Brian are reviewing the contract in detail today and tomorrow. You and I should expect to receive their summary comments and feedback early next week. When I have gotten them, I will call to schedule review time with you as well. Thanks,

TSH Contract

Presentation: Great Lakes Transmission When: Monday, June 18 (3:00-4:30) Where: Troy, MI (Detroit) Who: Shiela Walby (Marketing); The main guy is Great Lakes is Art Edmunds [this is who I spoke to] and he will be out of town for several weeks but wants us to meet with Shiela, his rates/pricing manager; An IT person will be at the meeting as well. Comments: Art told me that they run daily auctions for both firm and IT; He also told me that they were unable to get rid of much of their firm capacity this past winter; Alliance, Panhandle Eastern and Vector have created a competitive environment for Great Lakes; Art also told me that they rarely sell at their max. rate due to new competition. Note: We are meeting with Vector on Tuesday.

Great Lakes Transmission Ltd.

Andy, Thanks for giving me the opportunity to meet with you about the Analyst/ Associate program. I enjoyed talking to you, and look forward to contributing to the success that the program has enjoyed. Thanks and Best Regards,

Thanks for the interview

Enron Establishes Future Market For Memory Chips By Bob Sechler Of DOW JONES NEWSWIRES Jun. 7, 2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) AUSTIN, Texas -(Dow Jones)- Dynamic random access memory chips, known as DRAM, have long been viewed as the pork bellies of the computer industry, commodities whose prices swing widely based on supply and demand. Enron Corp. (ENE) is taking the analogy a step further by enabling DRAM manufacturers and consumers, such as computer companies, to engage in the same price hedging strategies deployed in industries that depend on traditional commodities. The company has launched a lot program to buy and sell DRAM chips based on forward contracts, and it says an average of 25,000 standard 128-megabit DRAM chips a week were traded through its system during the first quarter, the initial quarter for active trading. That's a small amount relative to the overall worldwide DRAM market, estimated at $32 billion last year, but it is a start. "The (DRAM) chip market is a boom-or-bust cycle, with prices very high or very low," said Kenneth Wang, director of Enron's global semiconductor group. "It's the perfect market. And Enron has the credibility." Enron, Houston, is no stranger to making markets. The company, once a stodgy natural gas pipeline operator, has evolved into a major commodity marketer and trader, dealing in everything from energy products to chemicals and Internet bandwidth capacity. Chip industry players and observers are intrigued by the DRAM effort, although many remain skeptical. Most point out that the potential for a DRAM futures market has been discussed for years with little to show for it. "All of the PC companies I know of would love to have an effective hedge" against DRAM price swings, Lehman Brothers Inc. analyst Dan Niles said. Every computer contains at least one of the chips, and many contain multiple chips, making DRAM chips among the top component expenses for computer makers. Other products, such as automobiles and digital cameras, use the memory chips as well. At present, DRAM chips are sold through direct contracts with manufacturers, such as Micron Technology Inc. (MU) and Samsung Electronics Co. (Q.SSE), and through a spot market, where the price fluctuates daily. There is no independent exchange for DRAM futures that would allow manufacturers of the chips or their consumers to hedge against unexpected price swings. Challenges to forward trading in DRAM have proved daunting. DRAM isn't quite uniform, although it's considered the closest thing to a commodity in the computer industry. Many different configurations of the same basic chip exist, depending on the needs of the customer. DRAM prices have fallen over time - about 30% a year over the last 25 years as manufacturing costs have declined - despite short-term fluctuations. Memory chip prices have fallen steeply this year because of weak computer demand. Standard 128-megabit chips have been selling recently for about $2.40 on the spot market, off almost 50% since February. Technical innovation always has the potential to render existing DRAM varieties obsolete, which would open the door to additional risk for the holder of a forward buy contract. Nonetheless, some major industry players are watching Enron's effort closely. Officials at Compaq Computer Corp. (CPQ), a leading consumer of DRAM chips, think the effort has merit and could work. Compaq hasn't made any DRAM purchases through Enron yet but remains receptive to the idea. The trend of falling DRAM prices "happens on a macro level, but there have been years when the price has increased 50% or 100%, and it happens in a very quick period of time," said Jack Baikie, Compaq's vice president of corporate procurement. "It's not a predictable cost curve" in the short-term. This year's declining prices likely would reverse quickly upon some signal that PC demand was rebounding, he said. A forward trading market "could provide us the ability to anticipate market trends and do some no-risk, or minimal-risk, hedging," Baikie said. Baikie dismisses the notion that DRAM isn't a commodity. "A memory chip is a memory chip," he said, with the only difference being how an individual consumer elects to configure and use it. Micron, one of the top DRAM manufacturers, also is receptive to the idea of a forward trading market. But Micron spokesman Kipp Bedard cautioned that the technical variations of DRAM, combined with continuing innovation, aren't insignificant issues and have proved to be a problem in past efforts. Enron is confident it has the expertise to package and make standard its forward contracts for DRAM in a way that renders the technical differences surmountable. Company officials point to Enron's pioneering effort in Internet bandwidth trading as an example of a market that also faced technical hurdles. But Enron officials acknowledge they're still demonstrating that their effort is viable and valuable. "We want people to first get used to it," said Wang, of Enron. "It's a process of education." He said he expects trading volume to increase when big companies use the market. Enron executives said that DRAM is the first of their efforts to establish forward markets for all types of computer components. Eventually, Enron plans to trade forward contracts for components such as liquid-crystal displays. "We'd like to hedge maybe 60% of a computer, if possible, in the long-term," Wang said. "That's our plan."

FYI.....Enron Establishes Future Market For Memory Chips

Hello Everyone: Due to database difficulties in Houston, the EnronOnline Europe Marketing Report for the week ending June 6, 2001 could not be produced today. The report will be distributed as soon as data becomes available. Apologies for any inconvenience this may cause. Regards,

Delayed - EnronOnline Europe Marketing Reports

FYI. The ClickPaper group in Industrial Markets asked my permission to be able to say, "ClickPaper will be upgraded to operate via the EnronOnline platform." I have asked them to delete the reference to EnronOnline and simply claim that this is a new version with many enhancements and new features. While it may seem like their message gives a plug to EnronOnline, I think it will confuse the audience on what exactly is the relationship between ClickPaper and EnronOnline. Also, we have little control over how Industrial Markets will promote ClickPaper and I don't want the market to think that any issues with ClickPaper somehow are a poor reflection on EnronOnline. Kal

ClickPaper transition

ChemConnect and Envera Announce Merger; Leading Online Marketplace for Chemicals and Plastics and Major Industry Consortium Join Forces, Heralds New B2B Era 06/07/2001 Business Wire Offering the only complete e-commerce solution for buyers and sellers of chemicals and plastics worldwide, ChemConnect Inc. and Envera today announced they have merged. The agreement between ChemConnect, operator of the World Chemical Exchange, a dynamic online marketplace supported by strategic e-commerce services, and Envera, a leading global electronic network for chemical and petrochemical industry B2B supply chain transactions and services, is effective immediately. Dedicated solely to creating value for buyers and sellers of chemicals and plastics, the merged company offers increased efficiency, cost optimization, and improved collaboration with existing and new business partners across the entire supply chain, from prospecting to fulfillment and settlement. "ChemConnect is the leading online marketplace for chemicals and plastics. Envera offers unparalleled supply chain integration. Together, we create the first online Marketplace Plus that offers a flexible, modular approach to accommodate different stages of adoption," said John Robinson, ChemConnect CEO, who will now serve as CEO of the merged entity. "Combining our complementary strengths and shared vision, we will have an unbeatable solution: A seamless connection to the entire workflow, from identifying new business partners to fulfillment. It's what our Members told us they want, and with this merger, we are making it all available." ChemConnect and Envera will offer their Members unmatched, online global buying and selling opportunities, supported by end-to-end connectivity and collaboration--including sales, logistics, and financial services--across entire supply chains. With each company's proven B2B expertise in creating new efficiencies and improved bottom-lines for their members, the two companies together represent the first fully-integrated, full-service e-commerce solution, where buyers and sellers of chemicals and plastics can meet in an open, independent marketplace to find new business partners, negotiate purchases and sales, and complete order fulfillment through automated back-office business processes and system-to-system integration. Because both companies' solutions are "ready-now," with low entry costs, chemicals and plastics buyers and sellers can immediately, and profitably, benefit from procurement, sales, and supply chain efficiencies.

FYI-n

I am working with IT on the look and feel for Kiodex Lite reports on EnronOnline. I think the reports should be named "Kiodex Reports" and branded with the Kiodex logo. While EnronOnline is delivering the reports, I want our users to easily understand that EnronOnline is not processing the reports and any errors/issues would be Kiodex's responsibility. Pls. let me know if you agree. Kal

Kiodex Reports on EnronOnline