IssucAlerts email Page 4 of 4

continues to watch the developments at Enron, which is clearly a company in the midst of another
wave of change.

An archive list of previous IssueAlerts is available at
www.scientech.com

We encourage our readers to contact us with their comments. We look forward to hearing
from you. Nancy Spring

Reach thousands of utility analysts and decision makers every day. Your company can
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Our staff is comprised of leading energy experts with diverse backgrounds in utility
generation, transmission & distribution, retail markets, new technologies, I/T, renewable
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consulting@scientech.com or call Nancy Spring at 1-505-244-7613.

SCIENTECH is pleasec to provide you with your free, daily IssueA/ert. Let us know if we
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Copyright 2001. SCIENTECH, Inc. All rights reserved.

files/C\ WINDOWS \Temporary%20Internet%20Files\OLK6304\aricle2.htm 01/18/2002

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Mandated purchases of company stock. Current law allows 4 plan sponsor to
compel employees to purchase up to 10 percent of employer stock ag a condition
of participating in a 401{k} plan. Grassley said he thinks this rule should be
eliminated.

Fiduciary rules. These rules ensure that companies properly invest and
handle retirement plan money, including spending the money for the exclusive
benefit of their employees. Retirement plane are tax-favored vehicles,
authorized under the Internal Revenue Code. Grassley said he wants to learn
whether Enron officials violated their fiduciary duties and in general, whether
Cangress should change the existing rules.

Black-outs. A "black-out" or "lockdown" occurs when a plan is shut down
for a period of time to allow, for example, change to another plan
administrator. Enron had such a “black-out," though the length of time is
disputed. Grassley said he wants to get the facts on this event because it may
coincide with the decline in the company's stock value.

Mandated diversification of stocks in retirement plans. ‘Seme legislation
has been introduced that mandates employees hold no more than a certain
percentage of stock in their 401(k) plan. Diversification in one part of the
plan should indicate that all investments should be mandated. Grassley said he
has an open mind, but thinks mandates are not desirable nor particularly
feasible.

Grassley said he is pursuing these ideas with experts from outside groups
and agencies such as the Treasury Department, the Labor Department and the
Pension Benefit Guaranty Corporation.

“The tax code smiles on retirement plans, for good reason," Grassley said.
“Tax breaks encourage employers to set up retirement plans and employees to take
part in those plans. If employers find it easy to break the rules, then
Congress has to re-write the rule book. Otherwise, employees counting on a
secure retirement might be left out in cold.*

In addition to the retirement plan track, Grassley said he is part of an
effort to look into whether Enron used certain tax vehicles that might have
masked the company's financial condition.

=30-

00800000000863


IssueAlerts email Page 3 of 5

fit a pattern that Buffett created: They are well-managed companies that sell a
tangible product and have strong growth potential over the long term. MidAmerican
Energy arguably fit that template due to its history as an integrated utility, Enron,
which is far more difficult to define, may ultimately prove to be too abstract a
company for Berkshire Hathaway's tastes.

As discussed in yesterday's IssueA/ert, GE Capital has been increasing its holdings
in the energy landscape lately due to its affiliation with Trans-Elect, a private
company that is actively pursuing the transmission assets sold by utilities. Trans-
Elect and GE Capital are in the process of purchasing the transmission assets of
CMS Energy Corp. GE's role in the CMS deal is not entirely clear, but it appears that
the company is participating mostly as a financial backer. Although they have
downplayed the significance of their relationship, Trans-Elect has clearly received
financial backing from GE. In fact, the Structured Finance Group of GE Capital
Services owns 2 minority interest in Trans-Elect (the size of the investment has not
been disclosed). Note that GE Structured Finance Group has many investments in
other energy companies, including The New Power Company, Enermetrix, Beacon
Power, and Plug Power (to name just 4 few). I don't see the synergies between GE
Capital and Enron as much as with Shell or Berkshire Hathaway. However, if GE
Capital is attempting to simply increase its investments in the lucrative energy
business without any involvement in the operational aspects of the business, then
this partnership could be considered viable. GE's own microturbine business has
slowed somewhat, so the advantage of gaining Enron's wholesale business from a
marketing perspective may also be a driver in this possible play. In addition, a
recent report in Business Standard indicated that General Electric plans to increase
its investment in India to about $800 million over the next three years with
increased investments in the infotech sector and GE Capital Services. Of course,
Enron is still involved in the India energy market due to its troubled Dabho! Power,
which oversees a power contract in India,

The European companies such as Enel and £.ON may turn out to be credible
Prospects, as companies across the Continent continue to seek merger and
acquisition opportunities in the United States, across generation and transmission
sectors in particular. £.ON is still in the process of purchasing the United Kingdom's
Powergen, so it may be tied up in regulatory proceedings that would preclude an
additional acquisition. No word has emerged that may support or refute rumors
about a takeover from Enel.

Enron's stock price has oscillated wildly since its 3Q financial report was released in
mid-October, The allegedly non-recurring losses in non-core businesses, and their
potential impact on the basically strong core business of natural-gas and power
trading, coalesced with previcus concerns about the departure of Jeffrey Skilling as
Enron's CEO and sent the company's stock on a downward spiral (falling an
approximate $4 percent in just seven days). Enron shares hit a nine-year low on
Oct. 30 and then bounced up about 25 percent on the following day. The surprising
upswing occurred when Enron announced that it had secured $1 billion in fresh
credit lines from investors such as J.P. Morgan Chase & Co, and Salomon Smith
Barney, Inc. that it planned to use partly to supplement short-term liquidity and
refinance maturing obligations. However, at the same time, what had started as an
informal inquiry by the SEC officially became a full-scale investigation, which thus
far has served as a brick wall against any further increases in Enron's stock price.
The identification of the SEC probe as a full-scale investigation Is significant
because it gives regulators the right to subpoena Enron company documents, which
has been a point of contention for some time among investors who claim that
Enron has not been completely forthcoming about its practices.

file:/C:\WINDOWS)\Temporary%20Internet%20Files\OLK6304\article.htm O1/18/2002

00200000000021


Bradshaw, Tara
—

From: Bradshaw, Tara

Sent: Thursday, January 10, 2002 2:12 PM
To: Davis, Michele; Weinberger, Mark
Ce: Sweetnam, Bill Jr

Subject: RE; URGENT!

Importance: High

Former Benefits Tax Counsel, Mark iwry, just called me. He said he has gotten a call from the NYT asking about this
'ssue, and a call from CNBC to appear on the Capital Report. He wants to know if there is anything he can say that will be
helpful

—-~-Oniginal Message——

From: Davis, Michele

Sent: Thursday, Jarwary 10, 2002 2:09 PM
To: Bradshaw, Tara; Weinberger, Mark

Subject: RE: URGENT!

{(b)(5)]

~--—Original Message-~--
From:  Gradshaw, Tara

Sent: — Thursciwy, January 10, 2002 1:53 PM
Tor Davis, Michele; Weinberger, Mark
‘Subject: URGENT!
Importance: High

The President announced that Terasury and Labor will be doing a joint review of pension and retirement rules with
regard to Enron. | have received 3 calls on this (all tax pubs). {(b)(5))

Thanks.
Tara

oo0so0000000894


Bradshaw, Tara

From: Davis, Michele

Sent: Monday, January 07, 2002 4:04 PM

To: Bradshaw, Tara; Fratto, Tony

Subject: RE: Tax havens & Enron! rhie will be fun
((b)(5)]

cree Original Message-----

From: Bradshaw, Tara

Sent: Monday, January 07, 2002 3:31 PM

To: Fratto, Tony; Davis, Michele

Subject; Tax havens & Enron! this will be fun
Importance: High

FYI

~--*-Qriginal Message -----

From: HEIDI PRZYBYLA, BLOOMBERG/ WASHINGTO
(mailto:HPRZYBYLAGDloomberg. net}

Sent: Monday, January 07, 2002 3:23 PM
Ta: Tara.Bradshawado.treas.gov

Subject: Re:

hey Tara. Thanks for the quick response. These are the questions we need
answered from Treasury: 1) Has there been any contact between the administration
and Enron whatsoever on the issue of tax havens 2) What if any was Enron's
role in the Bush administration's position on the OECD initiative and 3) will
Treasury inveatigate Enron's use of offshore subsidiaries. thanks for your
help. Also Tony returned my call while we were on the phone so can you pla.
forward this to him?

00800000000884


Bradshaw, Tara

From: Bradshaw, Tara

Sent: Monday, January 07, 2002 4:06 PM

To: Weinberger, Mark; Angus, Barbara; Olson, Pam
Subject: FW: Tax havens & Enron!

Please see the initial message from a bloomberg reporter
thanks

----- Original Message---~-~

From: Davis, Michele

Sent: Monday, January 07, 2002 4:04 PM

To: Bradshaw, Tara; Fratto, Tony

Subject: RE: Tax havens & Enron! this will be fun

{(b)(5)]

----- Original Message-----

From: Bradshaw, Tara

Sent: Monday, January 07, 2002 3:33 PM

To: Fratto, Tony; Davis, Michele

Subject: Tax havens & Enron! this will be fun
Importance: High

FYI

o---- Original Message-----

Prom: HEIDI PRZYBYLA, BLOOMBERG/ WASHINGTO
[mailto:HPRZYBYLASbloomberg.net]

Sent: Monday, January 07, 2002 3:23 PM
To: Tara.Bradshaw@do,treas.gov

Subject: Re:

hey Tara. Thanks for the quick response. These are the questions we need
answered from Treasury: 1) Has there been any contact betwe:

en the administration

and Enron whatsoever on the issue of tax havene 2) What if any was Enron's
role in the Bush adminiatration's position on the OECD initiative and 3) Will

Treasury investigate Enron's use of offshore subsidiaries. thanks for your
help. Also Tony returned my call while we were on the phone so can you pls.

forward this to him?

00800000000915


EXECUTIVE SECRETARIAT CORRESPONDENCE PROFILE

PROFILE #: 94-131267 CREATE DATE: 03/01/94
ADDRESSEE: Bentsen, Lloyd M. AUTHOR: Lay, Kenneth
Secretary Enron Corporation

SUBJECT: Press Release On Enron Oil And Gas Company

ABSTRACT: Urges the administration to support Indian Government in its
effort to privatize and liberalize their economy.

see weeneeenneeeeeeeeeeeee*® TASK ASSIGNMENT MEMORANDUM ****tteeeeeeeteennewer ents

ASSIGNED TO: JEFFREY SHAFER DUE DATE: 03/09/94
OASIA

ACTION REQUIRED: Letter

TASK: Please prepare a response for the signature of the Secretary and
clear with General Counsel.

DISTRIBUTION: GENERAL COUNSEL PUBLIC LIAISON
ECONOMIC POLICY EXEC SEC

01000000000888


((o(5)]

ones Original Message-----
Prom: Bradshaw, Tara

Sent: Monday, January 07, 2002 3:31 PM

Te: Fratto, Tony; Davis, Michele

Subject: Tax havens & Enron! this will be fun
Importance: High

FYI

----- Original Message---~-

Prom; HEIDI PRZYBYLA, BLOOMBERG/ WASHINGTO
[mailto-HPRZYBYLASbloomberg. net]

Sent: Monday, January 07, 2002 3:23 PM
To; Tara. Bradshawede,treas.gov

Subject: Re:

hey Tara, Thanks for the quick response. These are the questions we need
answered from Treasury: 1) Hes there been any contact between the administration
and Enron whatsoever on the issue of tax havens 2) What if any was Enron's
role in the Bush administration's position on the O&CD initiative and 3) will
Treasury investigate Enron's use cf offshore subsidiaries. thanks for your

help. Also Tony returned my call while we were on the phone so can you pls.
forward this to him?

00800000000882


Sutton, Gary

From: McGivem, Tom
Sent: Wednesday, October 31, 2001 9:20 AM
To: Ellis, Dina; Carleton, Norman; Bitsberger, Timothy; Bair, Shea; DeMarco, Edward, Etlett,

Martha, Gabilondo, Jose; Gross, Jared; Huffman, Lucy, Hughes, Gerry, Mcinemey, Roberta;
Nickoloff, Peter; Roseboro, Brian; Salladin, Anne; Schultheiss, Heidilynne; Smith, Amy,
‘Sutton, Gary; Tishuk, Brian; Duncan, John; Sanders, Traci; Dorsey, Karen

Subject: RE; Netting Letter to be Signed by PWG and FDIC, OCC, and OTS

| agree with Dina that it's not @ foregone conclusion that the larger bankruptcy bill will get to the President's desk this
session. In light of the weakening in the economy, concerns about Enron, etc., | recommend that the letter should go as
Grafted

— Original Message:
From: Elis, Dina
Sent: Tuesday, October 30, 2001 3:02 Prt
To: Carleton, Norman; Bitsberger, Timothy; Bar, Sheila; Constantine, Bieri; DeMarco, Edward; Ellett, Martha; Gabfondo, Jase; Grows,

Jared; Huffman, Lucy; Hughes, Gerry; McGiver, Tam; McInerney, Roberta; Nickoloff, Peter; Roseboro, Bran; Salagin, Anne;
Schultheiss, Heidilynne; Smith, Amy; Sutton, Gary; Tehuk, Brian
Subject: RE: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS

I have spoken to a variety of people on possible movement of the bankruptcy dill, There is a slight chance that there
will be a conference meeting next week but | don’t see fasat movement on the bill.

From: Carleton, Norman

Sent: Tuesday, October 30, 2001 2:46PM

To: Bitsberger, Timethy; Bair, Sela; Constantine, Eleni; DeMarco, Edward; Ellett, Martha; Ellis, Dina; Gabilondo, Jase; Gross, 1;
Huffman, Lucy; Hughes, Gerry; MeGivern, Tom, Mcinemey, Roberta; Nickoloff, Peter; Roseboro, Brian; Saladin, Anne;
‘Schulthess, Heiditynne; Smith, Amy; Sutton, Gary, Tishuk, Brian

Subject: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS

<< File: Netting letter.doc >>

Attached is the proposed netting fetter from the Federal Reserve. (\t has merge mail features that you
will have to delete in order to read it. Alternatively, you can use the quick view program to access the
document.) It is awaiting approval from SEC Chairman Pitt. Below is an article | sent around earlier
today indicating that some are trying to revive the Bankruptcy bill.

Sheila -- Given the apparent attempt to revive the Bankruptcy bill, do you still want the last sentence of
the letter to read: “With the final days of this session of Congress approaching, we urge you to remove
the netting legislation from the broader legislation and enact it separately"?

Norman Carleton

Bankruptcy Conference May Resume As Netting Bill Considered

The House Judiciary Committee will be turing its attention to other matters in the weeks
remaining before adjournment - possibly including a conference on bankruptcy,
CongressDaily reported. Further work on the legislation had been postponed after the Sept.
11 attacks occurred. The House and Senate conferees had been poised to meet Sept. 12. A
spokesman for the committee yesterday said that no new conference date has been set, but
staff members in recent weeks have continued to work on technical aspects of the bankruptcy
measure. Judiciary Committee Chairman James Sensenbrenner (R-Wis.), who is chairing the
conference committee, is determined to make a go of it before members leave town for the
year, according to sources. While noting that the committee’s agenda had not yet been

1

00200000000095


Hol Betsy

From: Schlesinger, Jacob Lacob, Schlesinger ws) com
Se Wednesday, jacob [J 16, 2002 5:21 1
To: “Betsy. Holahan@do.treas.gov’

Betsy:

Many thanks for getting Peter on the phone. He was very helpful.

I don't know if he has mentioned this to you yet, but I told him that we are
interested in doing 4 profile of him and I'd love to set up an interview for
that as soon as possible. I should stress this *t a eatory focused on who
made what Enron calls to whom. It's a broader piece about him as an official
in the middle of a lot of important issues, from airlines and terror
insurance to debt management and making sure financial markets are working
properly at a time of stress.

I don't have a specific deadline (yet) but the sooner the better. Maybe it
would be possible to meet over lunch next week? I am well aware that there
are sensitive areas he won't want to talk about -- at least on the record --
eo I'm happy to work with you to do this in a way he's comfortable.

Please let me know at your soonest convenience.

Jake

Jake Schlesinger
Office: 202-662-6656
Cell: 202-669-1349

00800000000798


[(b)(5)]

ce: EX.MAIL."brucej@iadb.org", ex.mail."Tcraford@wb.or...

01000000000966


Mcinerney, Roberta

From: Gabilondo, Jose

Sent: Wednesday, October 31, 2001 3:57 PM

To: Authauser, David

Cc: McInerney, Roberta; Bieger, Peter

Subject: SEC comment: Enron's cash-financed aquity buyback
{(b)(5))
José

00200000000012


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00500000001289


McInerney, Roberta ee

From: Carleton, Norman
Sent: Wednesday, December 19, 2001 3:43 PM
To: Wiedman, Mark; Bair, Sheila; Bieger, Pater; Bitsberger, Timothy, DeMarco, Edward; Dorsey,

Karen; Elett, Martha; Ellis, Dina; Gabilondo, Jose; Gross, Jared; Huffman, Lucy; Hughes,
Gerry; McGivern, Tom; Mclnerney, Roberta; Nickoloff, Peter; Roseboro, Brian; Salladin, Anne;
Schulthess, Heidilynne; Smith, Amy; Sutton, Gary; Tishuk, Brian

Subject: panveration with Frank Hampton and ABI Website; House Leaders Continue to Push Netting
Provisions

According to Frank Hampton of TBMA, Dick Armcy is also pushing the netting legislation. However,
Sensenbrenner hopes to acheive a compromise on the larger bankruptcy legislation by February and is opposed
to passing the netting legislation separately. In the Senate, Grassley is also opposed to a separate netting bill and
is reportedly avoiding a meeting with Greenspan to discuss this.

Norman Carleton

ABI Website news:

December 19, 2001

House Leaders Continue to Push Netting Provisions

House leaders are trying to nudge forward legislation that seeks to prevent systemic financial crises by allowing
creditors to “net out” their derivatives losses with major counter parties that have filed for bankruptcy, The
American Banker reported, It is still unclear, however, whether even they will be successful in overcoming the
political obstacles that have stalled it for more than a year - especially considering that Congress is expected to
adjourn for the year as early as this week. Majority Whip Tom DeLay (R-Texas) “believes that it's important to
get the netting provisions done, either within the context of bankruptcy reform or elsewhere,” a spokesman said.

Such highly technical bills rarely attract the attention of top House or Senate leaders, but the recent collapse of
Enron Inc. has given the netting legislation newfound relevance. Federal Reserve Board Chairman Alan
Greenspan and Treasury Secretary Paul O'Neill say markets are at risk until a law is cnacted that allows
contracts to be quickly and casily netted out without the approval of slow-moving bankruptcy courts, Holding it
up, however, is House Judiciary Committee Chairman James Sensenbrenner (R-Wis.), who heads the House-
Senate bankruptcy legislation conference committee, The netting legislation is a part of the bankruptcy reform
legislation. Sensenbrenner and some Senate Judiciary Committee members, including bill sponsor Charles
Grassley (R-lowa), oppose passing the netting authority separately because they still hope that the relatively
uncontroversial provisions will propel the bankruptcy package.

Though industry sources said they have received commitments from House leaders that netting will be enacted
by year-end or soon thervafter, they are not expected to force a vote without the support of Sensenbrenner. Even
after a meeting last week with Greenspan, Scnsenbrenner maintained that he was “going to try to keep it in the
bankruptcy package.” his spokesman said.

00200000000042


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The House Judiciary Committee will be turing its attention to other matters in the weeks
remaining before adjournment - possibly including a conference on bankruptcy,
CongressDaily reported. Further work on the legislation had been postponed after the
Sept. 11 attacks occurred, The House and Senate conferees had been poised to meet
Sept. 12. A spokesman for the committee yesterday said that no new conference date has
been set, but staff members in recent weeks have continued to work on technical aspects
of the bankruptcy measure. Judiciary Committee Chairman James Sensenbrenner (R-
Wis.}, who is chairing the conference committee, is determined to make a go of it before
members leave town for the year, according to sources. While noting that the committee's
agenda had not yet been formulated, his spokesman did not rule out the prospect. “It's
definitely a possibility,” he said

Moreover, members of the House Financial Services Committee are trying to move a
provision of the bankruptcy legislation pertaining to financial netting-perhaps as part of the
economic stimulus package-in the event the underlying bill remains stalled.

That provision is designed to strengthen and update current statutory protections for
netting financial market contracts if a party defaults. The netting language of the bill was
one of the few consensus items included in the bankruptcy legislation. The economic
downturn and the widening number of commercial bankruptcies could help create even
stronger impetus for the provision to move separately, sources said.

House Financial Services Committee ranking member John LaFalce (D-N.Y.) urged shortly
after the Sept. 11 terrorist attacks that the netting language be moved “expeditiously.” In
response, Treasury Secretary Paul O'Neill and Federal Reserve Chairman Alan
Greenspan agreed “whether as part of comprehensive bankruptcy reform legislation or as
a stand-alone bill, Congress should not fail to enact netting legislation this year.” The
Financial Services Committee had considered placing netting legislation on the schedule
for markup this Wednesday, when it takes up a host of other bills. Committee leaders
decided against such action, however. A spokeswoman for House Financial Services
Committee Chairman Michael Oxley (R-Ohio) said he remained hopeful that the underlying
bankruptcy bill could move intact.

00200000000094


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IssueAlerts email Page 2 of 4

remained at a low ebb after it reported its first quarterly loss in over four years. The
energy giant's stock was off $3.32 or 11.45 percent at $25.68 per share at mid-day trade on Oct.
15, making 4 cumulative loss of 28 percent for a week in which it reported a third-quarter loss of
$638 million. As of early morning trading on Oct, 22, Enron shares were priced at $21.99, a
reflection of new developments (including a new Securities and Exchange inquiry) that have caused
uncertainty about the company among investors.

Analysis: Enron's first financial report since the departure of former CEO Jeffrey Skilling in August
has not done much to once again instill investor confidence in the company, which has experienced
‘one of its most turbulent years in recent memory. While Skilling cited personal reasons for his
departure, many analysts suspected that a significant drop in Enron's share price and financial
losses in its diversified businesses also played a role. At the time of Skilling's departure, Enron's
stock had tumbled to a 52-week low. However, based on the new 3Q report, it now appears that
Enron's downward turn may be continuing despite the return of Kenneth Lay to the company's top
spot. In essence, Enron's financial problems have been caused by businesses that the company has
established as a way to diversify from its core focus on wholesale power sales, It appears that
Enron js learning a costly lesson—namely that investors are not responding favorably to the
company's innovation, especially if bottom line performance is in any way compromised. The road
ahead may remain uncertain for Enron, as a good number of unresolved issues and a new
Securities and Exchange Commission (SEC) inquiry into financial dealings of its chief financial
officer continue to overshadow the company.

Let's first establish the financial losses that Enron has reported in the third quarter. As noted, as a
whole the company reported $638 million in losses, after taking $1.01 billion in charges associated
with several of its non-core businesses. When we break down the losses, it becomes clear that
Enron is struggling with its operations in three businesses: water, broadband and the retail power
market. Specifically, Enron reported $287 million in charges from Azurix, its water and wastewater
business; $180 million in charges related to the downsizing of its broadband operations (including
severance costs and losses on inventory sales and customer contracts); and $544 million in what
the company is calling “investment losses.” Evidently, about half of the $544-million figure is
related to Enron's investment in NewPower Company, the retail electricity and natural-gas provider
that Enron launched about two years ago with partners America Online and IBM. Enron owns 45
percent of NewPower. In addition, Enron's debt to total capitalization ratio reportedly will increase
to about SO percent, although Lay says that pending asset sales may reduce that amount to 40
percent by the end of 2002. However, it is important to note that Enron's 3Q recurring net income
(before the write-offs) did increase 35 percent to $393 million, or 43 cents a diluted share, and
revenue in the quarter rose to $47.6 billion from $30 billion in 3Q 2000.

The losses associated with NewPower are particularly interesting. As one of the leading investors in
the company, Enron Grove NewPower's aggressive business focus on retail residential power sales,
despite ongoing concerns about the development of retail competition across the United States.
NewPower went public last year at an opening price of $21, and in the early days of its initial public
offering was trading above that price. However, the company's stock has experienced a
devastating drop in value, and Is currently priced at $1.25. NewPower is not scheduled to release
its own 3Q financial statement until early November, but it is expected that the company will
continue to incur significant losses for the foreseeable future. Specifically, NewPower recently
reiterated its earlier expectations of a 3Q loss of $65 million to $70 million, or $1.12 to $1.20 a
share. Third-quarter revenue reportedly will be slightly lower than the $60 million to $65 million
that the company had forecast in August.

In analyzing NewPower's 2Q financial losses (see IssueA/ert from 8/8/01 at
www.scientech.com/rci), | argued that the company is really struggling from a mix of positive and
negative factors in its efforts to become the leading retail energy provider in residential and small
business markets in the United States. On the positive side, NewPower has recently secured a large
number of new customer accounts, most significantly from its purchase of customers and related

file://C:\WINDOWS \Temporary%20Internet”20Files\OLK6304\article2, htm O1/ 18/2002

00200000000025


FYT

coool Original Message-----

From: HEIDI PRZYBYLA, BLOOMBERG/ WASHINGTO
[mailto:HPRZYBYLA@b1locomberg.net}

Sent: Monday, January 07, 2002 3:23 PM
To: Tara. Bradshawsdo.treas,gov

Subject: Re:

hey Tara. Thanks for the quick response. These are the questions we need
answered from Treasury: 1) Has there been any contact between the administration
and Enron whatsoever on the issue of tax havens 2} What if any was Enron's

role in the Bush administration's position on the OECD initiative and 3) will
Treasury investigate Enron's use of offshore subsidiaries. thanks for your

help. Also Tony returned my call while we were on the phone so can you pls.
forward this to him?

00800000000917


DRAFT

{(b)(5)]

00200000000017


OK

Subject:

[(b)(5)]

Joe Eichenberger

‘3/2/00 9:58am
Nigeria Cable



‘Rhetoric Fuels U.S.-India Rift _

Perception of Washington Vendetta Threatens Improved Business, Military Ties

-
Indian newspapers that pose questions like Washington-based Kashmir sucd#}sionist

By Mally bieore this one published last week: “What makes group saying, “I look forward tof workang
and Joka Weed Andere Bill Clinton seem to enjoy wounding Indian with you and others to help bring peace to
sensibilities” Kashmur.” Both letters were repligs, to let-

NEW DELHI—In a war of words that What India sees as the biggest insult by \\ ters written to Clinton.

has alarmed U.S. officials bere and in Wash- || Washington is the absence of a U.S. ambas- “There can be only two interprétations.”

ington, Indian authorities say relations be- || sador here, which Indians see as a symbol of | / newly retired foreign secretary JIN. Duct

tween the two countries have reached their |) Washi indi linton’s

lowest point in two decades, threatening || U.S. also say that having an ambas-!" sion program. “Either they are s$uplistic

blossoming economic ties and American }| sador in Delhi might have prevented some and you can say it is tactless, or 3. they

efforts to control ouclear proliferation in differences from being blown out of may be saying this deliberately to set the
interference.

munor

proportion. Controversy ;

selection of former U.S. representative Ste- While the letters would appea?, to be
Solarz (D-N.Y.) to fill the job has been standard courtesy replies, U.S. officials is-

of the delaying factors. sued

Himalayan repos

and taking sides with India’s neighbor and
arch enemy, Pakistan. caused by delays in the system and was not = India's agitation with the United States
Anti-American semtiment has become so 2 reflection of American attitudes toward | | parallels the escalation of a war of words
strong that the acting U.S. ambassador felt India. “I regret the delay,” Christopher said.) | becween India and Pakistan that has
compelled to answer the charges ina state- “I bope we're gomg to have a fine ambas- | | reached the highest levels i almost three
ment cared onthe editorial pages of one of sador there in place inthe pear future. « - | years, alarming U.S. and other. élicials.

on by internal pressures in the two
political (as regen, considered 2 ‘“2#ily newspaper, the Hindu. countries. Pakistani Prime Minister
vocential fashpoed fr nuclear war between Major policy differences also exist be  Baotto. who is newly elected and “holds a

has been criticized by her opponents as too

“It's become semathing we have to take ‘The Clinton adminsstratoc is unhappy with tenuous majority in ber country’s pagtiment,
very senously.” a Sime Department official ledis's teaman righes record -—cepecaily i soft on the Kashmir issue. On the otter side

Indian 7
of the border, Indian Prine Ministér Rao,
been accused of and torturing :

The barbed palitical rhetone comes after : talling, raging 20 fusal to who bas strugged to rena. oe, bas
a pened of sendy more oT Nmeeen the two ‘ign the nuclear Non-Proitferauon Treaty. Sean et-wmng,
ad wine ‘of the Somet Locka accuses the United States of tilting slim political factions. ire the
countries. Wath the Giasehaion Rin ine toward Pakistan in its South Asia policies Adding proswure om
OR ee ened Sentes fen 24,04 meddling i ts internal attire lotion and Pakistani saris, whees po:
curtailed bal jantes to Pakistan. A sew Menechsloes, cher youn of premere by os dependent oa continsed fncuon
program of ecummmr bberaiuration private orgamzations, appears 'e . a
about two yearsagp by the government of  Conssiering allowing internsbonal groups For both India and Pakioran, 297 state:
Prime Mimwter FV. Naraumhs Rao has gach as the Internatsonal Commuttee of the ment or political move made by the United
attracted bumdeelis of U.S. businesses Red Cross and Amnesty International to : e3 ne

f
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01000000000893


{(b)(5)]

01000000000895


From: Greg Christopulos

To: CLAPPG
Date: 11/18/99 5:36pm

Subject: Update on IPP disputes in the DR
[(b)(5)]

01000000000965


EMERGING MARKET FOCUS

Domestic woes

plague Africa

many sub-Saharan African
centres a3 international
investors were deterred by
the problems of investing in

Kenya, Nigeria, Ghana,
Mauritias, Namibia and the
Togional exchange in Ivory
Coast fell between January
and July, although South
Africa's Johannesburg stock
exchange, the continent's
biggest market, Zimbabwe
and Botswana rose.

Jenni Chamberlain at

HSBC said the markets in
the region have been suffer:
ing from a general lack of
interest from forvign Inves:
tors. “These markets are
plagued by liquidity prob:
lems, 80 realising gains
becomes difficult, let alone
accumulating a large enough
pasition to naake the invest-
ment worth the effort.”

In Kenya, the Nairobi
stock exchange Index fell by
22.7 per cent im the first half.
Analysts blamed the coun-
try's dispute with the Inter
national Monetary Fund,
problems in tbe local bank-
ing sector and lower returns
from tea and coffee exports
due to bad weather:

However, recent govern-
ment moves to tackle cor
ruption may belp improve
sentiment, particularly from
the international donor com
munity. Also, local imstitu-

the stock market index In
the January to July peried.
In Ghana, one of the best
performing emerging mar-
kets last year, the market
jas eased by 18 per cent, and
according to HSBC at one
paint sales. orders ootnum-
pered buy orders by 14 to
one as international prices
for gold amd cocoa, its two

primary exports, fell.
Asbanti Goldfields, the big-
west stock on a

strengthen

market's regulator, allow the
development of new finan-
cial produets and the intro-
duction of mutaal funds will
bring @ recovery later in the

tives are considering making ye!

bigger investments in the
stock market as interest
rates decline.

Many had expected the

investors refocused on @
country which retarned to
civilian rule in May.

‘¥et violent protests in the
oil-rich Niger delta and the
government's rulingout of
British proposals that IMF
officials monitor the han-

o[17 /97 Cun,

PRIVATISATION PROGRAMME

MOPEPAGE | SITEMAP | SOMEDULES | BBC INFORMATION | 81

Tuesday, August 17, 1999 Published at 01:25 GMT 02:26 UI

World: Africa

IMF praise and caution for
Ethiopia

The International Monetary Fund IMF has praised
Etnopla for its recent economic progress, but cautioned
that the country must not risk letting its national
expenditure get out of control,

The IMF said Ethiopia's economic progress over the
past two years had been remarkable, jally in light
of trade losses, bad weather conditions and the cost of
the war with Eritrea.

But an IMF statement said we god by og about the
expected widening trade gap cau a global fall in
the price of coffee, Ethiona's key export,

And it called on Ethiopia to improve the collection of
taxes, encourage competition, and to consider allowing
foreign banks to operate. The IMF said it regretted the
heavy human and economic costs brought about by the
contict with Eritrea and said it hoped for a prompt
settlement,

=)

Enron

it to the cor
US comp

Nigeria's largest c!
plant for an estimated

a's plans to deregulate power generation came

to reality during a weekend visi
Bill Richardson, US energy secretary.

has signed a deal with Lagos,
Mr Richardson said the US government would provide

technical assistance to the government's power privatisa-
tion programme and hailed the deal with Enron as a sign
of the improved investment climate. William Wallis, Lagos

US, Nigeria in power deal

Nigeri
closer

build and operate a S60 MW power

$800m.

00500000000597


{(b)(5)}

00200000000014


Mcinerney, Roberta

From: Gabilondo, Jose

Sent: Thursday, November 01, 2001 1:49 PM

To: Mcinermey, Roberta; Bieger, Peter

Subject: FW: SEC comment: Enron's cash-financed equity buyback
Roberta/Poter -

David asked me to set up a meeting to discuss Enron. | wanted to check with you before scheduling anything.

José
~Original Message-—--
From: Authauser, David
Sent: Thursday, November 01, 2001 12:43 PM
To: Gabllondo, Jose
Subject: RE: SEC comment: Enron's cash-financed equity buyback

meet on this tomorrow -- set it up with ronnie

~-~-Original Message-——-
From: Gabilondo, Jose
Sent: ‘Thursday, eae, 2001 9:03 AM
Tor Authauser, Dat
‘Subject: RE: SEC commas Enron's cash-financed equity buyback
[OUTSIDE SCOPE}

~-—-Onginal Message-—---

From: Aufhauser, David

Sent: Weineniey, Cctsber 31, 2001 9:55 PM

Tor

Subject: Re: sete Sec conmrent: Enron's cash-financed equity buyback

[OUTSIDE SCOPE}

From: ‘Gabfiondo, Jose

Sent: Wednesday October 31, 2001 3:57 PM

To: Aufhauser, David

Ce: Mcinemey, Roberta; Bieger, Peter

Subject: ‘SEC comment: Enron's cash-financed equity buyback

[(b)(5); (b)(7)]

00200000000013


IssueAlerts email Page 3 of 4

assets from AES Corp. and OTE Energy. These purchases prompted an impressive growth spurt for
NewPower, and the company reportedly now has a customer base in 22 markets in 10 states.
However, the bad news for NewPower is that its losses continue to widen, apparently resulting

4 combination of weather factors and financial hits absorbed in several of the states in which the
company operates. This dichotomy does not appear to be getting any better, and the company's
stock has continued to drop as a result.

In an effort to alleviate some of its financial woes, NewPower recently revised an existing master
netting agreement with Enron Corp. and several of its subsidiaries. The revised agreement
essentially lowers the amount of cash collateral that NewPower is required to post to the Enron
subsidiaries through Jan. 4, 2002. With the lowered financial obligations that It must make to
Enron, NewPower believes that it will have sufficient financial resources to conduct its business in
the near term until it secures ongoing asset-based financing.

However, from Enron's perspective, the losses associated with NewPower (and, by the same token,
the losses in water and broadband) have contributed to a steady drop in its own stock price. The
message is clear: The businesses that Enron plunged Into as a way to diversify have tainted the
company as a whole, Further, what some analysts perceived as brash hubris on Enron's part has
not translated into measurable profits, and consequently Wall Street has reacted by sending
Enron's stock to a level that is about half of where it was a year ago. The individual sectors that
Enron has pursued are all unique, but they share the common denominator of taking Enron away
from what was a successful core business. Further, they are similar in that Enron aggressively sunk
large sums of capital into new business lines for which it arguably had unrealistic expectations for
growth, The problem with Enron's bandwidth unit Is that the company has faced an unanticipated
excess of fiber-optic lines, which has prevented the demand for the division's services from
materializing as anticipated. The problem with Azurix, which has been losing money since its
formation in 1998, is that privatization of the water sector has not materialized as quickly as Enron
and other companies anticipated. In addition to these problem areas, Enron also faces challenges
related to its investments in India (where it is locked into a legal battle with the state government)
and California (from which Enron has yet to receive full payment for previous power sales).

In addition to the losses outlined in the 3Q report, there are new issues that are brewing at the
start of this week, First, the SEC has requested that Enron provide information regarding “certain
related party transactions.” Not much additional information is presently available about this
inquiry. However, It is probably connected to earlier reports about concerns related to the dealings
of Enron's Chief Financial Officer Andrew Fastow, who up until very recently had run a limited
partnership that bought assets from Enron. Ken Lay has said that Enron will cooperate fully with
the SEC's request, In a separate development, several mutual funds (including AIM Constellation
that once held large positions in Enron) have either liquidated or reduced their holdings in the
company, which has further weakened Enron's stock value. Portfolio managers of the mutual funds
have cited concerns about Enron's ability to balance its new businesses with its core strength as an
energy trader.

The present challenge for Enron is to convince investors that the company remains on solid ground
Gespite the losses. Thus, Lay has been quick to reiterate that earnings from the company's eneray
and gas-pipeline business are still strong. Further, Lay says that the charges reported in the third
quarter should be seen as a way to “clear away issues that have clouded the performance and
earnings potential of our core energy businesses." Nevertheless, the fact remains that Enron has
invested huge amounts of money toward its diversification effort, and in addition to water and
broadband the company has invested into the steel and pulp and paper sectors as well. Thus,
several questions remain at this juncture. Are the losses reported in the third quarter only a
temporary setback for Enron that will clear the way for the company to return to a primary focus
on its core business of energy trading? Or, will the losses continue into the fourth quarter and
2002? Moving forward, will Enron once again reshape its business model and eliminate the various
businesses to which investors have reacted less than favorably? Only time will tell as the industry

files/C\WINDOWS\Temporary%20Internet%20Files\OLK6304\article2.htm OL/18/2002

00200000000026


DRAFT

[(b)(5)]

00200000000016


formulated, his spokesman did not rule out the prospect. “It’s definitely a possibility,” he said.

Moreover, members of the House Financial Services Committee are trying to move a provision
of the bankruptcy legislation pertaining to financial netting-perhaps as part of the economic
stimulus package-in the event the underlying bill remains stalled.

That provision is designed to strengthen and update current statutory protections for netting
financial market contracts if a party defaults. The netting language of the bill was one of the
few consensus items included in the bankruptcy legislation, The economic downturn and the
widening number of commercial bankruptcies could help create even stronger impetus for the
provision to move separately, sources said,

House Financial Services Committee ranking member John LaFaice (D-N.Y.) urged shortly
after the Sept. 11 terrorist attacks that the netting language be moved “expeditiously.” In
response, Treasury Secretary Paul O'Neill and Federal Reserve Chairman Alan Greenspan
agreed “whether as part of comprehensive bankruptcy reform legislation or as a stand-alone
bill, Congress should not fail to enact netting legislation this year.” The Financial Services
Committee had considered placing netting legislation on the schedule for markup this
Wednesday, when it takes up a host of other bills. Committee leaders decided against such
action, however, A spokeswoman for House Financial Services Committee Chairman
Michael! Oxley (R-Ohio) said he remained hopeful that the underlying bankruptcy bill could
move intact.

00200000000096


Mcinerney, Roberta

From: McGivern, Tom
Sent: Wednesday, October 31, 2001 9:20 AM
To: Ellis, Dina; Carleton, Norman; Bitsberger, Timothy; Bar, Sheila; DeMarco, Edward: Ellett,

Martha; Gabilondo, Jose; Gross, Jared; Huffman, Lucy; Hughes, Gerry; McInerney, Roberta;
Nickoloff, Peter; Roseboro, Brian; Salladin, Anne; Schulthelss, Heiditynne; Smith, Amy;
Sutton, Gary; Tishuk, Brian; Duncan, John; Sanders, Traci; Dorsey, Karen

Subject: RE: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS
{(b)(5)]
vor ‘Original Message~---
From: Bilis, Dina
Sent: ‘Tuesday, October 30, 2001 3:02 PM
Te:

Carleton, Norman, Bitsberger, Timothy; Bair, Sheils; Constantine, Beni; DeMarco, Edward; Bett, Martha; Gablloado, Jose; Gross,
Jared; Huffman, Lucy; Hughes, Gerry; MoGiver, Tom; McInerney, Roberta; Mickaloff, Peter; Roseboro, Brian; Sailadin, Anne;
Schulthelss, Heidlynne; Senith, Aery; Sutton, Gary; Tishuk, Brian
Subject: RE: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS:

| have spoken to a variety of people on possible movement of the bankruptcy bill. There is a slight chance that there
will be a conference meeting next week but | don't see fasat movement on the bal.

--—Oniging Message—-—

From: Carleton, Norman

Sent: Tuesday, October 30, 2001 2:45 PM

To: Besberger, Timothy; Bait, Sheila; Corestarttine, Eleni; DeMarco, Edward; Ellett, Martha; Efis, Dina; Gabilondo, Jose; Gross, Jared;

Subject: Netting Letter ta be Signed ly PWG and FDIC OCC. and OTS
<< File: Netting letter.doc >>
[(b)(5)]

Norman Carleton

Bankruptcy Conference May Resume As Netting Bill Considered

The House Judiciary Committee will be turning its attention to other matters in the weeks
remaining before adjournment - possibly including a conference on bankruptcy,
CongressDaily reported. Further work on the legislation had been postponed after the Sept.
11 attacks occurred. The House and Senate conferees had been poised to meet Sept. 12. A
spokesman for the committee yesterday said that no new conference date has been set, but
staff members in recent weeks have continued to work on technical aspects of the bankruptcy
measure. Judiciary Committee Chairman James Sensenbrenner (R-Wis.), who is chairing the
conference committee, is determined to make a go of it before members leave town for the
year, according to sources. While noting that the committee's agenda had not yet been

1

00200000000008


Bradshaw, Tara

Davis, Michele
Thursday, January 10, 2002 2:09 PM
Bradshaw, Tara; Weinberger, Mark

RE: URGENT!
{(b)(5)]
--Original Message----
From: Bradshow, Tara
Sent: Thursday, January 10, 2002 1:53 PM
To: Oavis, Michele; Weinberger, Mark
Subject: URGENT!
Importance: High

The President announced that Terasury and Labor will be doing a joint review of pension and retirement rules wilh
regard to Enron. | have received 3 calls on this (all tax pubs). Bill Sweetnam, our Benefits Tax Counsel in OTP, had
not been alerted to the decision for the review, [(b)(5)]

Thanks.
Tara

00800000000873


IssucAlerts email Page | of S

Subject: FW: Enron Update: Sagging Stock Price, Increased Earnings Continue to Fuel Takeover
Speculation

c ‘
()SCIENTECH

. IssueAlert cecoatahy fim that eodennonds onorgy ,

November 2, 2001 co N

Enron Update:
Sagging Stock Price,
Increased Earnings
Continue to Fuel Takeover THE STRUCTURE
Speculation

By Will McNamara
Director, Electric Industry Analysis

[News item from Associated Press] Troubled Enron Corp.
(NYSE; ENE) said it has secured $1 billion in new financing,
using its natural-gas and pipeline assets as collateral, But its
stock price took another dive after rising a day earlier on
takeover speculation. In afternoon trading Nov. 1 on the New
York Stock Exchange, Enron shares were down 9.3 percent,
or $1.29 a share, at $12.61.

Analysis: Like many following this ongoing story, | have
been closely tracking the plummet of Enron's stock since the
Oct, 16 release of the company’s 3Q financial report, in which
@ $638-million loss was identified, Since that time, Enron's
stature on Wall Street has literally fluctuated by the hour,
bumping up or down depending on the latest news report or
rumor circulating across the Web. The company's financial
problems have been well documented, along with the new
Securities and Exchange Commission (SEC) probe into
Enron's financial deals involving its just-dismissed chief X 7
financial officer, For background information on this case and the factors that led to
Enron's current maladies, please review my 10/22/01 IssueAlert, available at
www.scientech.com/rci, In this article, I will focus exclusively on the new reports
that put Enron in the unprecedented spot of being a possible takeover target.
Ironically, the very mention of Enron as a takeover target would have seemed
ludicrous last year at this time, when the company's stock had just passed a 52-
week peak of nearly $90 in August 2001. As of early morning trading on Nov. 2,
Enron shares were priced at $11.05, illustrating just how low the company has

‘Olnternet'%20Files\OLK6304\article htm 01/18/2002

file:/(C:\WINDOW S\Temporary

00200000000019


McInerney, Roberta

From: Gabilondo, Jose

Sent: Friday, Novernber 02, 2001 2:29 PM.

To: Aufhauser, David

Ce: Bieger, Peter; McInerney, Roberta

Subject: Enron: energy trading market structure and financing
{(b)(5)]

wtie rem arti? ta

00200000000018


Bradshaw, Tara

Bradshaw, Tara

Tuesday, January 08, 2002 11:54 AM

Olson, Pam; Weinberger, Mark; Angus, Barbara
RE: Tax havens & Enron!

I talked to the reporter, gave her the answers. I also asked her why ehe was trying to
link Enron with our tax haven policy. She says that Enron has 674 subsidiaries--all in

listed tax haven countries. (More than any other company)

secon Original Message-----

From: Glson, Pam

Sent: Monday, January 07, 2002 4:26 PM
To: Bradshaw, Tara

Subject; RE: Tax havens & Enron!

{(b)(5)]

e---- Original Message-----
From; Bradshaw, Tara

Sent: Monday, January 07, 2002 4:06 PM

To: Weinberger, Mark; Angus, Barbara; Olson, Pam
Subject: PW: Tax havens & Enron!

Please see the initial message from a bloomberg reporter
thanks

-+--+-Original Message-----
From: Davis, Michele

Sent: Monday, January 07, 2002 4:04 PM

To: Bradshaw, Tara; Fratto, Tony

Subject: RE: Tax havens & Enron! this will be fun

((b)(5)]

-+++-Original Mesaage~---~

From: Bradshaw, Tara

Sent: Monday, January 07, 2002 3:31 PM

To: Pratto, Tony; Davis, Michele

Subject: Tax havens & Enron! this will be fun
Importance: High

00800000000916


Holahan, Betsy
——————

From: Holahan, Betsy

Sent: Friday, January 11, 2002 1:21 PM
To: Davis, Michele

Subject: Enron CNBC requests
importance: High

CNBC Business Center (after 6 pm) and Market rie seas 30 pm) programs both want Peter today. | will call to decline
unless there is someone else you want to send in his

00800000000821


ari

{(b)(5)]

Joe Eichanberger
StewartEK
3/2/00 9:5Ram

{(b)(5)}

0500000000612


Bradshaw, Tara

From: Angus, Barbera

Sent: Tuesday, January 08, 2002 3:55 PM

To: Bradshaw, Tara; Olson, Pam; Weinberger, Mark
Subject: RE; Tax havens & Enron!

{(b)(5)]

««---Original Message-----

From: Bradshaw, Tara

Sent: Tuesday January 08, 2002 11:54 AM

To: Olson, Pam; Weinberger, Mark; Angus, Barbara
Subject: RE: Tax havens & Enron!

I talked to the reporter, gave her the answers. I also asked her why she was trying to
link Enron with our tax haven policy. She says that Enron has 874 subsidiaries--all in

listed tax haven countries. (More than any other company)

Original Message-
From: Olgon, Pam
Sent: Monday, January 07, 2002 4:26 PM
To: Bradshaw, Tara

Subject: RE: Tax havens & Enron!

((b)(5)]

From; Bradshaw, Tara

Sent: Monday, January 07, 2002 4:06 PM

To: Weinberger, Mark; Angus, Barbara; Oleon, Pam
Subject: FW: Tax havens & Enron!

Please see the initial message from a bloomberg reporter
thanks

----- Original Message~-~~~

From; Davis, Michele

Sent: Monday, January 07, 2002 4:04 PM

To: Bradshaw, Tara; Pratto, Tony

Subject: RE: Tax havens & Enron! this will be fun

{(o)(5)]

00800000000874


CONFIDENTIAL

DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.
February 18, 2000 ~

ASSISTANT SECRETARY

INFORMATION

MEMORANDUM FOR: SECRETARY SUMMERS

DEPUTY SECRETARY EIZENSTA’

UNDER SECRETARY G!
FROM: Assistant Secretary T: ional Affairs)

. SUBJECT: Requested Embassy Cable on Structural Reform in Nigeria

DATE: Friday, February 18, 2000
BACKGROUND: {(b)(5)]

KEY POINTS:

{(b)(5)]

00500000000600


privatization efforts,” said Forrest E. Hoglund, chairman, president and chief executive
officer of EOG. "As a low-cost operator with a proven record in offshore oil and gas
development of this type, we feel EOG has the capabilities to add significant value to India's
assets in a timely fashion.”

EOG, with natural gas equivalent reserves of 1.9 trillion cubic feet and 1993
production of 709 MMcfid, has experience in the Gulf of Mexico offshore Texas and in the
Caribbean Sea offshore Trinidad. The company operates 15 platforms currently producing
85 million cubic feet per day (MMcf/d) of natural gas in U.S. waters. It also operates the
Kiskadee platform offshore Trinidad which is producing 50 MMcf/d from two wells.
Additional Kiskadee wells are being drilled, and an additional platform is being constructed
to develop the Ibis field upon conclusion of the Kiskadee development.

“We are particularly proud of our track record in Trinidad where it took us less
than one year to have natural gas flowing to the Trinidadian marketplace after signing the
original contract with the government of Trinidad and Tobago in November, 1992," Hoglund
said. "We anticipate using this same philosophy in India to accelerate the flow of crude oil
and natural gas supplies, which should benefit India’s rapidly developing economy.”

Prior to final negotiation of a production sharing contract with the government,
EOG and RIL anticipate cooperating with ONGC immediately to coordinate transfer of
operations in the currently producing Panna and Mukta fields. Major commitments for

drilling and platform construction will be finalized after the agreement negotiations are
completed in the next few months.

Enron Oil & Gas Company is one of the largest independent (non-integrated) oil
and gas companies in the United States in terms of domestic proved reserves. The
company’s reserve base is 85 percent domestic and 93 percent natural gas. EOG is listed on
the New York Stock Exchange and is traded under the ticker symbol, "EOG."

— Hit -

01000000000892


Mcinerney, Roberta

From: Gabilondo, Jose

Sent: Thursday, November 01, 2001 3:48 PM
To: Mclnemey, Roberta; Bieger, Peter
Subject: Enron meeting - 4:00 pm Friday
Roberta,

When | got back to my office, | got your message and one from Betty asking if | could attend @ 4:00 meeting
tomorrow with David and Peter Fisher on Enron. | checked with Martha (who put it on your calendar - Yvette was not
around), looked for Peter, and then called Betty back to say that we would attend tomorrow. | hope that's OK. Just so that
you know, | hadn't exchanged a word with David since we worked on the Argentina deal, i.e. | didn't solicit this assignment
from anyone.

On Tuesday when he called me into his office to discuss Enron, David told me that he wanted to meet that day or
the following after fd done some research, By noon yesterday, I'd learned some things and made some notes that |
wanted to pass on before the meeting, because | wanted to be responsive to his urgency. Of course | wanted to clear
them with you but you were on the hill, Peter was busy, and after walting a while | cecided to leave a draft in his box
upstairs with a note saying that neither you nor Peter had vetted the document but that | wanted him to see a rough draft
because it had seemed like a fairly urgent priority when we talked. They are background rather than legal notes (copy
below), $0 ~ although | hesitated at length before sending them - it seemed OK.

Jose

F)

qentionns ere:

00200000000015


Sutton, Gary

From: Ellis, Dine

Sent: Wednesday, October 31, 2001 9:42 AM

To: McGivern, Tom; Carleton, Norman; Bitsberger, Timothy, Bair, Sheila, DeMarco, Eeward,
Ellett, Martha; Gabilondo, Jose; Gross, Jared; Huffman, Lucy, Hughes, Gerry; Mcinemey,
Roberta; Nickoloff, Peter; Roseboro, Brian; Saltadin, Anne; Schultheiss, Heidilynne; Smith,
Amy; Sutton, Gary; Tishuk, Brian; Duncan, John; Sanders, Traci, Dorsey, Karen

Subject: RE; Netting Letter to be Signed by PWG and FDIC, OCC, and OTS

also... it will have to be recleared through all of the agencies if we rewrite the sentence. | spoke with Pat at the Fed. -- |
think the main thing is the timing of when we send the letler, As long as we don't send it the day of the meeting of the
conferees, | think we will be ok and not anger anyone too much.

~-—Onginal Message-~--
From: McGiver, Tom
Sent: Wednesday, October 31, 2001 9:20 AM

To:

Eis, Dina; Carleton, Norman; Basberger, Timothy; Bair, Shela; DeMarco, Edward; Bilett, Martha; Gatdondo, Jose; Gross, Jered:
Huffman, Lucy; Hughes, Gerry; McInerney, Roberta; NickoliotT, Peter; Rosebara, Brian; Saladin, Anne; Schulthess, Hexblynne;
Smith, Amy; Sutton, Gary; Tishuk, Brian; Duncan, John; Sanders, Traci; Dorsey, Karen

Subject: RE: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS

| agree with Dina that it's not a foregone conclusion that the larger bankruptcy bill will get to the President's desk this
session, In light of the weakening in the economy. concerns about Enron, etc., | recommend that the letter should go
as drafted.

---Onginal Message--—

From: — fis, Dina

Sent: = Tuesday, Octaber 30, 2001 3:02 PM

To: Carketon, Norman; Bitsberger, Timothy; Sar, Sheila; Constantine, Bieri; DeMarco, Edward; Elett, Martha; Gabfondo, Jose; Gross,
Jared; Huffman, Lucy; Hughes, Gerry; McGivern, Tom; Mclnerney, Roberta; Nickoloff, Peter; Roseboro, Brian; Salladin,
Anne; Schulthess, Heidtynne; Smith, Amy; Sutton, Gary; Tishuk, Brian

‘Subject: RE; Netting Letter to be Signed by PWG and FDIC, OCC, and OTS

Ihave spoken to a variety of people on possible movement of the bankruptcy bill. There is a slight chance that
there will be a conference meeting next week but | don't see fesat movement on the bill.

‘Onginal Message--~
From: ‘Carleton, Norman
Sent: Tuesday, October 30, 2001 2:46 PM

To: Bitsverger, Timothy; Bak, Sheila; Constartine, Eleni; DeMarco, Edward; Etett, Martha; Ells, Dina; Gabilondo, Jose; Gross, Jared;
Huffman, Lucy; thughes, Gerry; McG McGivern, Tom; McInerney, Roberta; Nickoloff, Peter; Raseboro, Brian; Salladm,
Anne; Schulthess, Heidilynne; Smith, Air; Sutton, Gary; Tistuk, Brien

Subject: Netting Letter ta be Signed by PWG and FDIC, OCC, and OTS

<< File: Netting letter.doc >>
Attached is the proposed netting letter from the Federal Reserve. (It has merge mail features that
you will have to delete in order to read it. Alternatively, you can use the quick view program to
access the document.) It is awaiting approval from SEC Chairman Pitt. Below is an article | sent
around earlier today indicating that some are trying to revive the Bankruptcy bill.

Sheila -- Given the apparent attempt to revive the Bankruptcy bill, do you still want the last
sentence of the letter to read: "With the final days of this session of Congress approaching, we
urge you to remove the netting legistation from the broader legislation and enact it separately"?

Norman Carleton

Bankruptcy Conference May Resume As Netting Bill Considered

1

00200000000093


Bradshaw, Tara

From: Bradshaw, Tara

Sent: Monday, January 07, 2002 4:05 PM

To: Davis, Michele; Fratto, Tony

Subject: RE: Tax havens & Enronlthis will be fun

rill find out

— Original Message-----
From: Davis, Michele

Sent: Monday, January 07, 2002 4:04 PM

To: Bradshaw, Tara; Fratto, Tony

Subject: RE: Tax havens & Enron!this will be fun

{(b)(5)]

Stabe Original Message-----

From: Bradshaw, Tara

Sent: Monday, January 07, 2002 3:31 PM

To: Pratte, Tony; Davis, Michele

Subject: Tax havens & Enron! this will be fun
Importance: High

coreel ‘Original Message-----~

From; HEIDI PRZYBYLA, SLOOMBERG/ WASHINGTO
(mailto: HPRZYBYLA@bloomberg.net)

Sent: Monday, January 07, 2002 3:23 PM
To: Tara.Bradshawido.treas.gov

Subject: Re:

hey Tara, Thanks for the quick response. These are the questiona we need
answered from Treasury: 1] Has there been any contact between the administration
and Enron whatsoever on the issue of tax havens 2) What if any was Enron's
role in the Bush administration's position on the OECD initiative and 3} Will
Treasury investigate Enron's use of offahore subsidiaries. thanks for your

help. Also Tony returned my call while we were on the phone so can you pls.
forward this to him?

00800000000914


The Honorable Lloyd Bentsen

February 28, 1994
Page Two

activity will result in significant exports from the United States as well as assist the
Indian Government in its efforts to privatize and liberalize their economy. This is

clearly a win-win proposition for both countries.

Sincerely,
nR0

fer
Attachments

¢: The Honorable Warren Christopher, Secretary of State
The Honorable Ronald H. Brown, Secretary of Commerce
The Honorable Thomas F. McLarty, Chief of Staff
The Honorable Robert E. Rubin, Chairman - National Economic Council

01000000000890


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07/01/99 09:01 FAX 202 623 3612

00500000001293


07/01/99 09:02 FAX 202 623 3612 IDB U.$.OFFICE + JHURLEY @oo7
Inter-American Development Bank Approved Project Documents - Dominican Republic Page 1 of2

ae

# Private sector project.

Copies of IDB Loan Proposals and TC Plans of Operations are available at a cost
of $10. Nationals of the borrowing member country may obtain one copy free of

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Last update: March 17, 1999 usm
——
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10(45° |B570CDR | Basic Education Improvement Program, Stage I SU
<> JS03/SF-DR ‘Agricultural Development in San Juan de la Maguans® a
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AINMT-5075- Strengthening of Small Business and Microenterprise in Rural
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'ATN/SF-5313-DR | Support for Modernization of the Congreso Nacional
bttp./www.jadb.org/exr/doc98/apr/icdomi. htm 1/1/99

00500000001294


Bradshaw, Tara

From: HEIDI PRZYBYLA, BLOOMBERG! WASHINGTO [HPRZYBYLA@bloomberg net]
Sent: Monday, January 07, 2002 3:23 PM

To: Tara. Bradshaw @do.treas.gov

Subject: Re:

hey Tara, Thanks for the quick response. These are the questions we need
answered from Treasury: 1) Has there been any contact between the administration
and Enron whatsoever on the iasue of tax havens 2} What if any was Enron's
role in the Bush administration's position on the OECD initiative and 3) will
Treasury investigate Enron's use of offshore subsidiaries, thanks for your
help. Algo Tony returned my call while we were on the phone so can you pls.
forward this to him?

00800000000885


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00200000000705


Bradshaw, Tara

er

From: Bradshaw, Tara

Sent; Monday, January 07, 2002 3:31 PM
To: Fratto, Tony; Davis, Michele
Subject: Tax havens & Enron! this will be fun
Importance: High

FYI

-o--- Original Message-----

From: HEIDI PRZYBYLA, BLOOMBERG/ WASHINGTO
[mailto:HPRZYBYLASbloomberg. net]

Sent; Monday, January 07, 2002 3:23 PM
To: Tara. Bradshawede.treas.gov

Subject: Re:

hey Tara. Thanks for the quick response. These are the questions we need

answered from Treasury: 1} Has there been any contact between the administration

and Enron whatsoever on the issue of tax havens 2) What if any was Enron's

role in the Bush administration's position on the OBCD initiative and 3) will

Treasury investigate Enron's use of offshore subsidiaries. thanks for your
help. Also Tony returned my call while we were on the phone so can you pla.

forward this to him?

00800000000913


ENRON

Oil & Gas Company NewsRelease
SN EE
PO, Box 1188 Houston, Texas 77251-1188 For Further information Comact;

A. H, Davis

(713) 853-6941

0} INI J V

FOR IMMEDIATE RELEASE: Friday, February 25, 1994

HOUSTON — Enron Oil & Gas Company (EOG) and Reliance Industries Limited
(RIL), India's largest private sector corporation, today confirmed that a Government of India
background paper indicated the awarding of offshore development and operating rights for
the Tapti, Panna and Mukta fields off the westem coast of India to their joint venture
consortium that also includes the Oil and Natural Gas Commission (ONGC) of India.

EOG expects to own its interest in the joint venture through a yet to be formed
subsidiary of its wholly owned subsidiary, Enron Exploration Company. Panna and Mukta
are oil fields with current production and Tapti is a large undeveloped natural gas field.

Upon receiving official confirmation within a week, EOG and RIL plan to expedite
with the Indian government final negotiation of the production sharing contract, operating
agreements and natural gas sales contracts. EOG, whose working interest ownership is
expected to be approximately 30 percent, will be operator of this joint venture development
project.

“We are very pleased that the Indian government appears to have given us the
opportunity to contribute to the further development of its hydrocarbon reserves and to its

- more —

01000000000891


The House Judiciary Committee will be turning its attention to other matters in the weeks
remaining before adjournment - possibly including a conference on bankruptcy,
CongressDaily reported. Further work on the legislation had been postponed after the
Sept. 11 attacks occurred. The House and Senate conferees had been poised to meet
Sept. 12. A spokesman for the committee yesterday said that no new conference date has
been set, but staff members in recent weeks have continued to work on technical aspects
of the bankruptcy measure. Judiciary Committee Chairman James Sensenbrenner (R-
Wis.), who is chairing the conference committee, is determined to make a go of it before
members leave town for the year, according to sources. While noting that the committee's
agenda had not yet been formulated, his spokesman did not rule out the prospect. “It's
Gefinitely a possibility,” he said.

Moreover, members of the House Financial Services Committee are trying to move a
provision of the bankruptcy legislation pertaining to financial netting-perhaps as part of the
economic stimulus package-in the event the underlying bill remains stalled.

That provision is designed to strengthen and update current statutory protections for
netting financial market contracts if a party defaults. The netting language of the bill was
one of the few consensus items included in the bankruptcy legislation. The economic
cowntum and the widening number of commercial bankruptcies could help create even
stronger impetus for the provision to move separately, sources sald.

House Financial Services Committee ranking member John LaFalce (D-N.Y.) urged shortly
after the Sept. 11 terrorist attacks that the netting language be moved “expeditiously.” In
response, Treasury Secretary Paul O'Neill and Federal Reserve Chairman Alan
Greenspan agreed “whether as part of comprehensive bankruptcy reform legislation or as
a stand-alone bill, Congress should not fail to enact netting legislation this year." The
Financial Services Committee had considered placing netting legislation on the schedule
for markup this Wednesday, when it takes up a host of other bills. Committee leaders
decided against such action, however. A spokeswoman for House Financial Services
Committee Chairman Michael Oxley (R-Ohio) said he remained hopeful that the underlying
bankruptcy bill could move intact.

00200000000011


Bradshaw, Tara

From: Davis, Michele
Sent. Thursday, January 10, 2002 2:21 PM
To: Bradshaw, Tara; Weinberger, Mark
Cc: Sweetnam, Bil Jr
Subject: RE: URGENT!
{(b)(5))
-----Original Message===+

From: Bradshaw, Tare

Sent: Thursday, January 10, 2002 2:12 PM

To: Davis, Michele; Weinberger, Mark

Ce: Sweestram, Ball Jr

Subject: RE: URGENT!

Importance: High

((b)(5)]

—--Oniginel Message-—

From: Davis, Michele

Sent: — Thursday, January 10, 2002 2:09 PM
To: Bradshaw, Tara; Weinberger, Mark
‘Subject: RE: URGENT!

((b)(5)}

-—~-Origina! Message--——-
From: Bradshaw, Tara

Sent: ‘Thursday, January 10, 2002 1:53 PM
To: Davis, Michele; Weinberger, Mark

Subject: URGENT!

Tmportance: High

The President announced that Terasury and Labor wil be doing a joint review of pension and retirement rules
with regard to Enron. | have received 3 calls on this (all tax pubs), Bill Sweetnam, our Benefits Tax Counsel in

OTP, had not been alerted to the decision for the review.

Thanks.
Tara

00800000000872


Bradshaw, Tara

Sweetnam, Bill Jr

Monday, January 14, 2002 5:56 PM
Bradshaw, Tara

Reeder, W Thomas; Walker, Deborah
RE: Enron, retirement plan rules

[(6)(5)]

o---- Original Message-----

From: Bradshaw, Tara

Sent: Monday, January 14, 2002 5:37 PM
To: Sweetnam, Bill Jr

Subject: PW: Enron, retirement plan rules

fyi

-Original Messag'
From: Press_Office@finance-rep.senate.gov
[mailte:Press_Office@finance-rep.senate.gov)
Sent: Monday, January 14, 2002 5:16 PM

To: Jill _Gerber@finance-rep.senate.gov
Subject: Enron, retirement plan rules

For Immediate Release
Monday, Jan. 14, 2902

Grassley Explores New Protections for Retirement Plan Participants

WASHINGTON - Sen. Chuck Grassley, ranking member of the Committee on
Finance, is pursuing whether Congress should tighten up protections for
retirement plan participants in light of Enron's collapse.

"Millions of Americans have hundreds of billions of dollars invested in
employer-sponsored retirement plans," Grassley said. “These plans receive
favored treatment under the federal tax code. The Committee on Finance has the
primary responsibility, under its jurisdiction, for making sure retirement plans
comply with the tax code and other laws. Our committee also has the
responsibility to fix any weaknesses that might leave retirement plan
participants in trouble if their employer goes under."

Grassley said the details of the Enron retirement plans are still
forthcoming. However, he said, some areas already are emerging as targets for
scrutiny. Specific areas Grassley is looking into are:

Cempany stock. Under current rules, a company can restrict a retirement
plan participant from selling the match received in company stock through an
employee stock ownership plan. (Enron employees' company stock matches were
restricted.} Grassley is researching whether employees should be able to change
this investment choice prior to an arbitrary age.

00800000000862


‘f pa DEPARTMENT OF THE TREASURY
ae WASHINGTON
MEMORANDUM FOR JEAN HANSON h
FROM: DENNIS I. FOREMAN

DEPUTY GENERAL COUNSEL AND
DESIGNATED AGENCY ETHICS OFFICAL

SUBJECT: The Secretary’s letter re Enron Corp.

SUMMARY

{((b)(5)]

DISCUSSION

{(b)(5)]

01000000000894


IssueAlerts email Page 4 of 5

The Enron questions of the moment are: How much further can the company's
stock fall before Enron's business model is significantly restructured? Will Enron
incur additional losses beyond the allegedly non-recurring losses it claimed in the
third quarter? Will Enron remain a takeover target, and if so which company would
be likely to make a bic for the company? What will be the outcome of the SEC
investigation and potential credit downgrades from agencies such as Moody's?

Some of these questions are impossible to answer at this juncture, without the
benefit of a crystal ball. Clearly, the sudden lack of investor confidence in Enron has
rattled the company's executives, which undoubtedly prompted the ousting of its
former CFO. I would think that this lack of confidence would also lead Enron to
consider fundamental changes in its business model. However, it may be too late to
avert additional losses in non-core businesses such as broadband, water and retail,
into which Enron sunk large sums of capital but which have yet to produce
measurable returns,

If Enron's stock remains in the basement, takeover rumors will undoubtedly
continue. However, Enron is challenged at this point to undertake @ substantial
modification of its business model, which may include the complete divestiture of
all of its non-core businesses outside of the energy trading core. If a takeover were
to take place, it would probably occur soon (while Enron's stock remains low and its
core business remains strong) and with a buyer that seeks a large trading
operation and experience in risk management. None of the companies mentioned
as possible buyers at this time completely fall under this description, but given
Shell's strong interest in wholesale markets I would contend that this potential
partnership makes the most sense. However, any company that makes a serious
bid for Enron would have to be very risk tolerant, considering the ongoing
uncertainty surrounding the company with regard to pending lawsuits and the SEC
investigation.

In addition, it is significant that Enron is pursuing additional financing, which
indicates that the company intends to bolster its financial position and avoid any
takeover attempts. Nevertheless, various credit rating agencies such as Moody's
are in the process of evaluating the company for potential credit downgrades. A
credit rating downgrade would raise Enron's cost of borrowing, which in turn could
cut into the profitability of the company's business as a whole, The end result is
that, if Enron's financial position does net improve substantially in the near term, it
will remain in @ very vulnerable position and a very real target for various takeover
measures.

An archive list of previous IssueA/ert articles is available at
www.scientech.com

We encourage our readers to contact us with their comments. We look forward to
hearing from you. Nancy Spring

Reach thousands of utility analysts and decision makers every day. Your company

can schedule a sponsorship of IssueAlert by contacting Jane Pelz at
505.244.7650, Advertising opportunities are also available on our Website.

file/C:\WINDOWS \Temporary%20Intemet"%20Files\OLK6304\article.htm O1/18/2002

00200000000022


Bradshaw, Tara

From: Bradshaw, Tara

Sent: Thursday, January 10, 2002 1:53 PM
To: Davis, Michele; Weinberger, Mark
Subject: URGENT!

Importance: High

The President announced tat Terasury and Labor will be doing a jomt review of pension and retirement rules with regard
to Enron. | have received 3 calls on this (all tax pubs). [(b)(5)]

be the lead on it

Thanks,
Tara

00800000000906


Seg
om eg
DEPARTMENT OF TREASURY a a
Zn

GENERAL COUNSEL CORRESPONDENCE TRACKING SYSTEM Ke

LOG NUMBER : 0G6C940302003 DUE DATE : 94/03/09
RECEIVED DATE : 94/03/02
OTHER LOG NUMBER : 94-131267 CORRESPONDENCE DATE : 94/02/28

FROM : Kenneth Lay, Enron Corporation
TO : Secretary Lloyd M. Bentsen
SUBJECT : Press Release on Enron Oil and Gas Company

OFFICE ASSIGNED FOR ACTION :

TASKING : OASIA action, to be cleared w/Gc.

CLEARANCE INFORMATION
LEGAL POLICY
Munk Hanson
Bowman Foreman

Gross

01000000000887


IssucAlerts email Page | of 4

Subject: FW: Enron's Departure from Core Business Takes a Tol! on Performance

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Enron's Departure from Core Business
Takes a Toll on Performance

By Will McNamara
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[News item from Reuters] Enron Corp. (NYSE; ENE) stock sustained further heavy
losses on October 19 as investor confidence in the former Wall Street favorite

file/C:\WINDOWS\Tempora

620Internet20Files\OLK6304\article2_ btm OL/18/2002

00200000000024


McInerney, Roberta

From: Ellis, Dina
Sent: Wecnesday, October 31, 2001 9:42 AM
To: McGivern, Tom; Carleton, Norman; Bitsberger, Timothy; Bair, Shella; DeMarco, Edward;
Ellett, Martha; Gabilondo, Jose; Gross, Jared; Huffman, Lucy; Hughes, Gerry; Mcinemey,
Roberta: Nickoloff, Peter; Roseboro, Brian; Salladin, Anne; Schultheiss, Heidilynne; Smith,
Amy; Sutton, Gary; Tishuk, Brian; Duncan, John; Sanders, Traci; Dorsey, Karen
Subject: RE: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS
[(b)(5)]
---—-Onginal Message—--
From: MeGiver, Torn
Sent: Wednesday, October 31, 2001 9:20 AM
Tor Elis, Dina; Carleton, Norman; Bitsberger, Timothy; Bair, Sheila; DeMarco, Edward; Gilet, Martha; Gabilondo, Jose; Gross, Jared;
Huffman, fj Hughes, Gerry, McInerney, Roberta; Nickaloff, Peter; Rosebora, Brian; Saladin, Anne; Schultheiss, Heiditynine;

‘Smith, Any; Sutton, Gary; Tishuk, Brian; Duncan, John; Sanders, Trad; Dorsey, Karen
‘Subject: RE: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS:

((b)(5)]

From: — Elis, Dina
Sent: Tuesday, October 30, 2001 3:02 PM
To: ‘Carteton, Norman; Bitsberger, Timathy; Bair, Sheila; Constantine, Elev; DeMarco, Edward; Elett, Martha; Gatilondo, Jose; Gross,

itn;
‘Subject: RE: Netiog Use to be Seed By PWG ana FONG face ant OTS

| have spoken to a variety of people on possible movernent of the bankruptcy bill, There is a slight chance that
there will be a conference meeting next week but | don’t see fasat movement on the bill.

noe" Message-
From: Careton, Norman
Sent: Tuesday, October 30, 2001 246 PM

To: Bitsberger, Timothy; Bair, Sheila; Constantine, Eleni; DeMarco, Edward; Eliett, Martha; Ells, Dina; Gatilondo, Jose; Gross, Jared;
Ratan, Wey: Hughes, Geny; MeGivery Tom; Mcinemey, Roberta; Nickoloff, Peter; Roseboro, Brian; Saladin,
Anne; Schutheiss, Heiditmne; Smith, Amy; Sutton, Gary; Tishuk, Brian
‘Subject: Netting Letter to be Signed by PWG and FDIC, OCC, and OTS

<< File: Netting letter.doc >>
{(b)(5)}

Norman Carleton

Bankruptcy Conference May Resume As Netting Bill Considered

1

00200000000010


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00500000001292


Bieger, Peter :

' ”

From: Carleton, Norman
Sent: Wednesday, December 19, 2001 3:43 PM
To: Wiedman, Merk; Bair, Shells; Bieger, Peter; Bitsberger, Timothy, DeMarco, Edward; Dorsey,

Karen, Ellett, Martha; Ellis, Dina; Gabilondo, Jose, Gross, Jared; Huffman, Lucy, Hughes,
Gerry, McGivern, Tom: Mcinemey, Roberta; Nickoloff, Peter, Roseboro, Brian; Salladin, Anne;
Schultheiss, Heiditynne; Smith, Amy, Sutton, Gary; Tishuk, Brian

Subject: Converation with Frank Hampton and ABI Website; House Leaders Continue to Push Netting
Provisions

{(b)(5)]

Norman Carleton

ABI Website news:

December 19, 2001

House Leaders Continue to Push Netting Provisions

House leaders are trying to nudge forward legislation that seeks to prevent systemic financial crises by allowing
creditors to “net out” their derivatives losses with major counter parties that have filed for bankruptcy, The
American Banker reported, It is still unclear, however, whether even they will be successful in overcoming the
political obstacles that have stalled it for more than a year - especially considering that Congress is expected to
adjourn for the year as early as this week. Majority Whip Tom DeLay (R-Texas) “believes that it’s important to
get the netting provisions done, either within the context of bankruptcy reform or elsewhere,” a spokesman said.

Such highly technical bills rarely attract the attention of top House or Senate leaders, but the recent collapse of
Enron Ine, has given the netting legislation newfound relevance. Federal Reserve Board Chairman Alan
Greenspan and Treasury Secretary Paul O'Neill say markets are at risk until a law is enacted that allows
contracts to be quickly and easily netted out without the approval of slow-moving bankruptcy courts. Holding it
up, however, is House Judiciary Committee Chairman James Sensenbrenner (R-Wis.), who heads the House-
Senate bankruptcy legislation conference committee. The netting legislation is a part of the bankruptcy reform
legislation. Sensenbrenner and some Senate Judiciary Committee members, including bill sponsor Charles
Grassley (R-lowa), oppose passing the netting authority separately because they still hope that the relatively
uncontroversial provisions will propel the bankruptcy package.

Though industry sources said they have received commitments from House leaders that netting will be enacted
by year-end or soon thereafter, they are not expected to force a vote without the support of Sensenbrenner, Even
after a meeting last week with Greenspan, Scensenbrenner maintained that he was “going to try to keep it in the
bankruptcy package,” his spokesman said.

0200000000228


formulated, his spokesman did not rule out the prospect. “It’s definitely a possibility,” he said.

Moreover, members of the House Financial Services Committee are trying to move a provision
of the bankruptcy legislation pertaining to financial netting-perhaps as part of the economic
stimulus package-in the event the uncerlying bill remains stalled.

That provision is designed to strengthen and update current statutory protections for netting
financial market contracts if a party defaults. The netting language of the bill was one of the
few consensus items included in the bankruptcy legislation. The economic downturn and the
widening number of commercial bankruptcies could help create even stronger impetus for the
provision to move separately, sources said.

House Financial Services Committee ranking member John LaFalce (D-N.Y.) urged shortly
after the Sept. 11 terrorist attacks that the netting language be moved “expeditiously.” In
response, Treasury Secretary Paul O'Neill and Federal Reserve Chairman Alan Greenspan
agreed “whether as part of comprehensive bankruptcy reform legislation or as a stand-alone
dill, Congress should not fail to enact netting legislation this year.” The Financial Services
Committee had considered placing netting legislation on the schedule for markup this
Wednesday, when it takes up a host of other bills. Committee leaders decided against such
action, however. A spokeswoman for House Financial Services Committee Chairman

Michael Oxley (R-Ohio) said he remained hopeful that the underlying bankruptcy bill could
move intact.

00200000000009


((oy(5)]

->---Original Message-----

From: Bradshaw, Tara

Sent: Monday, January 47, 2062 3:31 PM

To: Fratto, Tony; Davis, Michele

Subject: Tax havens & Enron! this will be fun
Importance: High

---e- Original Message-----

From: HEIDI PRZYBYLA, BLOOMBERG/ WASHINGTO
[mailte:#PRZYBYLAGbloomberg. net]

Sent: Monday, January 07, 2002 3:23 PK
To; Tara.Bradshawédo.treas.gov

Subject: Re:

hey Tara. Thanks for the quick response, These are the questions we need

answered from Treasury: 1) Has there been any contact between the administration

and Enron whatsoever on the issue of tax havens 2) What if any was Enron's

role in the Bush administration's position on the OECD initiative and 3) will

Treasury investigate Enron's use of offshore subsidiaries. thanks for your
help. Also Tony returned my call while we were on the phone so can you pls.

forward this to him?

00800000000875


07/01/88 09:00 FAX 202 623 3612 IDB U.S.OFFICE + JHURLEY @oor

INTER-AMERICAN DEVELOPMENT BANK.
Washington, D.C. 20577

FACSIMILE

ExECUTIVE DIRECTOR

United States «
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Fax —:_ (202) 623-3612
Tel —:_ (202) 623-1031

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00500000001288


Holahan, Betsy

From: Holahan, Betsy

Sent: Thursday, January 10, 2002 2:39 PM

To: Davis, Michele

Subject: RE: Press Guidance on POTUS announcement this morning re: pensions

| have an e-mail in to Peter in NYC. He is in @ meeting and his cell phone Is turned off...will keep you posted.

Original Message-—-
From: Davis, Michele
Sent: ‘Thursday, January 10, 2002 10:20 AM
To: Holahan, Betsy
ca Nichols,

Robert
‘Subject: Press Guidance on POTUS announcement this morning re: pensions
The President announced that the Secretary of the Treasury will convene two groups:

First grou
analyze Pension rules and regulatior

ns
recommend how to reform system to protect employees

Second group
analyze corporate disclosure rules
do stockholders have the knowledge they need

Relation to Enron:
The Justice Department and the SEC are handling the criminal investigation. If Enron broke the rules, they will be

- The Enron bankrupicy prompts a review of the regulations to make sure that employees’ pensions are
protected and stockholders have access to the information they need to make sound investment decisions.

((b)(5)]

00800000000812


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00200000000706


IssucAlerts email Page 2 of 5

sunk over the last year and how quickly the positions along the energy industry's
playing field can change.

There are three factors that, when taken together, put Enron in a vulnerable
position for takeover efforts. These three factors are a sagging stock price,
comparatively solid revenue streams and a solid position in the energy trading
space. The first point is obvious; @s Enron's share price has hit a nine-year low and
dropped by half in just one week, it is natural that other companies on the prowl
for lucrative acquisitions would begin to hover around the company. Enron shares
have dropped cramatically, and the company’s stock is now trading at close to
value. The other two factors I mentioned may need some further elaboration.
Despite the $638-million loss In the third quarter from businesses such as
broadband and water, Enron's core energy trading business posted a 26-percent
increase in recurring earnings in the same quarter, Thus, the core trading business
is basically in good shape and remains a strong cash generator. In addition, despite
the recent turmoil, Enron remains the largest natural-gas and power trader in the
United States, and thus is an attractive target for other companies operating in the
same space. Further supporting this point, most reports indicate that Enron is a
Principal in one-quarter of all electricity and natural-gas trades in the United

There are three companies that keep appearing on a short list of potential buyers in
an Enron takeover. | think it is important to discuss the individual objectives of
these companies and the factors that may lead them to pursue a purchase of
Enron. The three companies most often mentioned are Royal Dutch Shell, Berkshire
Hathaway and GE Capital. In addition, a small number of European companies such
as Germany's E.ON and England's Powergen have also been mentioned. At present,
all the companies named have neither denied nor confirmed their involvement in a
possible Enron takeover.

Of all these names, Royal Dutch Shell, the number two energy firm in the worid,
has been perceived as the top contender, The potential connection may have some
legitimacy. First, Royal Dutch Shell is the parent company to wholly owned
subsidiary Shell Oil, under which Shell Energy Services |s 2 wholesale and retail
marketing subsidiary. Shell Energy Services, which is based in Houston, had made
previous penetrations into the retail electricity markets of Texas and Ohio, but
recently withdrew from both states to focus more exclusively on wholesale power
transactions. Thus, Shell's focus on the wholesale market through Shell Energy
Services would make for a nice synergy with Enron's prominent position in the
wholesale trading space. Further, Shell had unsuccessfully tried on its own to be
involved in the merchant energy business, and thus an acquisition of Enron, the
dominant player in the energy trading space and an established energy franchise,
would be on par with the company's strategy. Other reports have indicated that
Shell had previously looked at a possible Enron buy, even before the company
began to experience financial instability, Financing the deal would not be a problem
for Shell, as Enron's current market capitalization is around $11 billion and Shell
would probably not have to offer a huge premium for the company.

Berkshire Hathaway, founded by multi-billionaire Warren Buffett, is another
company with deep pockets and a potential synergy with Enron. Berkshire
Hathaway penetrated the energy industry with a $9-billion purchase of Des Moines,
lowa-besed MidAmerican Energy Company, giving the company a 75-percent
ownership in the largest utility in Iowa, which is strategically located in the middle
of several major markets in the Midwest. Buffett, who previously invested in non-
energy companies such as American Express and Coca-Cola, has been drawn to the
energy space due to deregulation opportunities. Berkshire Hathaway's acquisitions

file://C:\WINDOWS\Temporary%20Internet%20Files\OLK6304\anicle.htm O1/18/2002

00200000000020


94~131267

ENRON
CORP

Kenneth L. Lay * ©, fox MBB
Grormen ond Hourton. Tens 77251168
ick Execseree Offeme 13) 453-6773

February 28, 1994

The Honorable Lloyd Bentsen
Secretary of the Treasury
Department of the Treasury
1500 Pennsylvania Avenue, NW
Room 3330

Washington, OC 20220

Dear Lloyd:

As indicated in the attached press release, Enron Oil and Gas Company and its
Indian partner, Reliance Industries, have been awarded the rights to develop and
operate the Tapti, Panna, and Mukta fields off the Western coast of India. The strong
support for our efforts on this matter from you and others in the Clinton Administration
were very instrumental to this outcome.

In his remarks to the Business Council last Wednesday evening, President Clinton
made the point that his Administration was committed to promoting U. S. business
interests abroad. | believe our success in India is tangible evidence of the results of
this policy.

At the same time, | remain concemed that the current relationship between the
U. S. and India governments is not as positive as it probably should be. The attached
copy of an article from the February 24 Washington Post articulates this concem better
than | could. I would hope the Administration would take affirmative steps to put these
relations between the worlds two largest democracies on a better footing.

| want to again express my appreciation to you and others in the Clinton
Administration for supporting our activity in India. We firmly believe the success of this

01000000000889


Bradshaw, Tara

From: Olson, Pam

Sent: Tuesday, January 08, 2002 72:01 PM
To: Bradshaw, Tara

Subject: RE: Tax havens & Enron!

{(b)(5)]

Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net}

aeeee! Original Message-----

From: Bradshaw, Tara <Tara.Bradshaw@do.treas.gov>

To: Olson, Pam <Pam.Qlson@ao.treas.gov>; Weinberger, Mark <Mark.Weinberger@do. treas.gov>;
Angus, Barbara <Barbara.Angus@do.treas.gov>

Sent: Tue Jan 06 11:54:09 2002

Subject: RE: Tax havens & Enron!

I talked to the reporter, gave her the answers. I also asked her why she was trying to
link Enron with our tax haven policy. She says that Enron has 674 subsidiaries--all in
listed tax haven countries. (More than any other company)

-Original Message-----

From: Olson, Pam

Sent: Monday, January 07, 2002 4:26 PM
To: Bradshaw, Tara

Subject: RE: Tax havene & Enron!

{(o(5)]

sores Original Message-----

Prom: Bradshaw, Tara

Sent: Monday, January 07, 2002 4:06 PM

Te: Weinberger, Mark; Angus, Barbara; Olson, Pam
Subject: FW: Tax havens & Enron!

Please see the initial message from a bloomberg reporter
thanks

-Original Messag
From: Davis, Michele
Sent: Monday, January 07, 2002 4:04 PM

To: Bradshaw, Tara; Fratto, Tony

Subject: RE: Tax havens & Enron! this will be fun

{(b)(5)}

00800000000881


Bradshaw, Tara

From: Olson, Pam

Sent: Monday, January 07, 2002 4:26 PM
To: Bradshaw, Tara

Subject: RE: Tax havens & Enron!

((b)(5))

-----Original Message---~--

Prom: Bradshaw, Tara

Sent; Monday, January 07, 2002 4:06 PM

To: Weinberger, Mark; Angus, Barbara; Olson, Pam
Subject: FW: Tax havens & Enront

Please see the initial message from a bloomberg reporter
thanks

oo--- Original Message-----

From; Davis, Michele

Sent; Monday, January 07, 2002 4:04 PM

To: Bradshaw, Tara; Fratto, Tony

Subject: RE: Tax havens & Enron! this will be fun

{(b)(5)]

we--- Original Message~----

From: Bradshaw, Tara

Sent: Monday, January 07, 2002 3:31 PM

To; Fratto, Tony; Davis, Michele

bject: Tax havens & Enron! this will be fun
Importance; High

PYI

ie Original Message-----

From: HEIDI PRZYBYLA, BLOOMBERG/ WASHINGTO
[mailto:HPRZYBYLAGbloomberg-net]

Sent: Monday, January 07, 2002 3:23 PM
To: Tara, Bradshawedo.treas.gov

Subject: Re:

00800000000883


IssueAlerts email Page 5 of 5

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