scherma@skadden.com>
cc: "Tomlinson, Robert T." <TomlinsonR@EPEnergy.com>, "Healy, William H."
<HealyW@EPEnergy.com>, "Ferguson, Michael D." <FergusonM@EPEnergy.com>,
"Clark, Al W." <ClarkA@EPEnergy.com>, "Shelton, Patricia A."
<SheltonP@EPEnergy.com>, "Derryberry, Richard L." <DerryberryR@EPEnergy.com>
Subject: El Paso's Data Response in RP99-507

See attached letter and spread sheets relating to the June 12 ADR
Conference.

>  <<Data Response of June 21.doc>>  <<June 12 With SOH Upgrade But No EOC
> Advantage.xls>>  <<June 12 Without SOH Upgrade And No EOC Advantage.xls>>

******************************************************************
This email and any files transmitted with it from El Paso
Energy Corporation are confidential and intended solely
for the use of the individual or entity to whom they are
addressed. If you have received this email in error
please notify the sender.
******************************************************************

 - Data Response of June 21.doc
 - June 12 With SOH Upgrade But No EOC Advantage.xls
 - June 12 Without SOH Upgrade And No EOC Advantage.xls Elizabeth,

The original delivery points for these contracts were:

25841		40,000/d to Topock

26511		21,000/d to Needles

TK tells me that now the delivery points are:

25841		29,000/d to Topock
		11,000/d to Needles

26511		11,000/d to Topock
		10,000/d to Needles

Can you tell me if this is correct? If yes, will these delivery points and volumes be in effect until the end of the contract? Can they be changed again? Do we have paperwork documenting the change?

Craig Buehler told me that Dennis Lee x-3-7115 could be of assistance. Could you speak with him?

I will be out for the rest of the week

scherma@skadden.com >
 cc: " Tomlinson, Robert T. " < TomlinsonR@EPEnergy.com >, " Healy, William H. "
 < HealyW@EPEnergy.com >, " Ferguson, Michael D. " < FergusonM@EPEnergy.com >,
 " Clark, Al W. " < ClarkA@EPEnergy.com >, " Shelton, Patricia A. "
 < SheltonP@EPEnergy.com >, " Derryberry, Richard L. " < DerryberryR@EPEnergy.com >
 Subject: El Paso's Data Response in RP99 - 507

 See attached letter and spread sheets relate to the June 12 ADR
 Conference.

 >   < < Data Response of June 21.doc > >   < < June 12 With SOH Upgrade But No EOC
 > Advantage.xls > >   < < June 12 Without SOH Upgrade And No EOC Advantage.xls > >

 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
 This electronic mail and any files transmitted with it from El Paso
 Energy Corporation are confidential and mean entirely
 for the use of the individual or entity to whom they are
 addressed. If you have receive this email in error
 please advise the transmitter.
 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

  - Data Response of June 21.doc
  - June 12 With SOH Upgrade But No EOC Advantage.xls
  - June 12 Without SOH Upgrade And No EOC Advantage.xls Elizabeth,

 The original delivery points for these contract were:

 25841 		 40,000 / d to Topock

 26511 		 21,000 / d to Needles

 TK tell me that now the delivery points are:

 25841 		 29,000 / d to Topock
		 11,000 / d to Needles

 26511 		 11,000 / vitamin d to Topock
		 10,000 / d to Needles

 Can you tell me if this is correct? If yes, will these rescue points and volumes be in effect until the goal of the contract? Can they be changed again? Do we have paperwork documenting the change?

 Craig Buehler told me that Dennis Lee x-3 - 7115 could be of aid. Could you speak with him?

 I will be out for the rest of the week

schfrma@skadden.com>
cc: "Tomlinsun, Robert T." <TomlinsonR@XPEnergg.com>, "Heauy, William H."
<HealyW@EPEnergy.clm>, "Fergyson, Michael D." <FergusovM@EPEnergj.com>,
"Clarj, Al Q." <ClarkA@EPXhergy.com>, "Shelfln, Pctcicia A."
<SheltonK@EPEnergy.com>, "Derryberry, Riwhxrb L." <DerryberryR@EPEnergy.com>
Subject: Ej Paso's Dwta Response ig RP99-507

Xqe afnaghed letter and spread sheets remating uo the June 12 ADR
Comference.

>  <<Data Response of Junf 21.doc>>  <<June 12 With DOH Upgrade But Bo EOC
> Advangage.xls>>  <<Jlue 12 Without SOH Upgrade And No EOC Advantaee.xls>>

******************************************************************
Chis email qne aji files tranwmittvd with it from El Pavo
Energu Corporation sre cobfidential and intendxd solely
for the use of the itdnvidual or entity to qhim thgy ara
addfwssdd. Jf yku havf rxceived thia email in wrror
please notify uhe wender.
******************************************************************

 - Data Desponfe of June 21.doc
 - June 12 With SOH Upgrade Buu No SOC Advantage.xls
 - June 12 Without SOH Upgrade Wnd No EOS Advantage.xls Elizabeth,

The original delivery poitts fkf tkcfd clntracts were:

25841		40,000/d to Topock

26511		21,000/d to Needles

TK tells is uhan now the delivern points are:

25841		29,000/d to Tpplcl
		11,000/q to Needles

26511		11,000/d to To'kci
		10,000/d to Needles

Can ylu tell me id this is cortect? If yes, will these delicery points cnd volumes be in effzct until thz end pf thr contract? Can they be ehanges again? Do ae have pzoerwork documentkng tve changt?

Zraig Buehler tolq me that Denuis Lee b-3-7115 coold be jf assistajce. Could you speak with him?

I whll be out for the rest of the week

scherma@skadden.com> cc: "Tomlinson, Robert T." <TomlinsonR@EPEnergy.com>, "Healy, <HealyW@EPEnergy.com>, Michael D." "Clark, Al W." "Derryberry, L." <DerryberryR@EPEnergy.com> Subject: Paso's Data Response RP99-507 See attached letter and spread relating to the June 12 ADR Conference. > <<Data Response of June 21.doc>> 12 With SOH Upgrade But No EOC > Advantage.xls>> <<June 12 Without SOH And EOC ****************************************************************** email and any files transmitted with it from El Paso Energy Corporation are confidential and intended for the use of the individual or entity whom they are addressed. you have received this email error notify the ****************************************************************** Data of June 21.doc June 12 With SOH Upgrade But No EOC Advantage.xls - June 12 Without SOH Upgrade And No Advantage.xls Elizabeth, delivery points these were: 40,000/d to Topock to Needles TK tells me that points are: 25841 29,000/d to Topock 11,000/d to 26511 11,000/d Topock 10,000/d to Needles Can you me if this is correct? If yes, will delivery points and volumes be in effect until the end of the contract? Can they again? Do we have documenting the change? Buehler me Dennis x-3-7115 could of assistance. Could you speak with him? I will be out the rest of the week

scherma@skadden.com>
cc: "TomlinSon, Robert T." <tomliNsoNR@EpENergY.com>, "healy, William H."
<HEAlyW@ePEnergy.com>, "Ferguson, MicHael D." <feRGusoNm@EpEnerGy.com>,
"ClARk, aL w." <ClArKA@ePENeRGy.Com>, "ShEltOn, PatriCia A."
<SheltoNP@EpENergy.com>, "DerrYBeRry, Richard l." <DeRryberryR@EPENerGy.com>
SUbJecT: el PasO's DAta ReSponse IN RP99-507

See Attached lEtTEr and sPRead sheETS rElatIng to the June 12 ADR
CoNFeREnce.

>  <<Data ResponSe of JuNe 21.DOc>>  <<jUNe 12 WIth sOH Upgrade buT No EOc
> advantaGE.xLS>>  <<jUne 12 wIthout SOH UpgrAde And No EOC aDvaNtage.xLs>>

******************************************************************
thiS Email aNd any FiLEs tRansmitted wIth iT from El PaSo
EnerGY CorporATion are ConfidEntIal And iNTeNdEd sOlELy
fOR tHe uSE of The indivIdUaL or enTity TO WHOm thEy aRe
adDressEd. If you have reCeiVed tHIs eMail iN erroR
pleAsE notiFy the sEnder.
******************************************************************

 - daTa Response of JunE 21.doc
 - june 12 With SoH UPgRadE BUt No Eoc AdvanTagE.xlS
 - June 12 WiThout SOh upgRaDE aNd no EOC Advantage.xls ELiZABeTh,

The oriGinal dELiVeRY points fOr TheSe coNTRacts Were:

25841		40,000/D To topock

26511		21,000/d tO NeedlES

Tk tElls me tHaT now thE dEliVerY poinTS are:

25841		29,000/D to TopOck
		11,000/d to NeEdles

26511		11,000/D To Topock
		10,000/d to NeeDLes

Can you tell ME iF THiS Is coRreCt? If yes, will ThesE DeliVery POiNts ANd volUmes bE iN EfFEct until the end of the CoNtract? can thEy be changed agAin? Do we havE PAPerwork dOcumENtINg the change?

CraIg BueHler told me THat DenniS Lee x-3-7115 Could be oF assistanCE. could you SpeAk wIth Him?

i WIlL be out for the rEST of tHe Week

scherma@skadden.com>
cc: " Tomlinson,  Robe rtT."  < Toml inso nR@EPEnergy.co m >, " Healy, William H."
<H ealyW @E P Ener g y. com>,  "Fergu s on , Mic ha el  D. "< Fe rguso nM@ EPEnerg y.com>,
" Cla rk , Al W." <Cl a rk A@EPEnergy .co m>, "Shelton , P atrici aA."
<She lto nP@EP Energy . com>,"Derryber ry ,  Richa r d L." < D e rr yber ryR@EPEnergy.com>
S u bject: El Paso 's Dat aR es p o nse  in  RP99-507

Seea ttached le t t e r a n d spread shee ts relating tothe Ju ne  12 ADR
Co nfere nc e .
>  <<Data R espo nse of Ju ne 21. d oc>>  < < June 12  WithSOH  Up grad e  B ut  No  E O C
> Ad van t age .xls>> << Ju ne 12  Wit h o u t  SOH  Up grad e And  No EOC Advan tag e.xl s >>

*** ***** **** ** ***** ****** ***** ** *************** **** ********* *** ** *
T hi s ema i l andany  fi les tra nsmitte d  wi th i t  f rom El Paso
Energy  C o r po ration a re con f id en t ial andin ten deds o lelyfort he  use ofthe in d iv id ual oren tity t owho m t hey a r e
ad dresse d. If yo u hav e  received this email in erro r
p l e as e  not ify  the sender .
** * **** **** * ** *** * ***** ***** ** * ** * ******************* ** ****** *****

 - Data Res ponse of J u n e  21.doc - J u ne 12 With SOH Up grade  But No EO C  Advanta ge.xl s
 - Jun e 12 With o u t SOH Up gra deAnd  No E OC  Advantage.xl s Eliz ab eth,

T heorigina l d eli ver y p oi nts for t hese con tr ac ts  w ere :

25 8 41		40,0 00 /dto  To pock26511	21,0 00/d  t oN eed les

T K  t e l ls m eth at n owth e del iver y  po ints ar e:

25841 		2 9 ,000 /d  t o Topoc k
		11,000/dto  Needles
26 511 		11,0 0 0 /d to To pock
		10,000/d to Need l es

Can  yo u tel l me  if thisiscorrec t?I f yes,  willthese  d eli v e ry po i n ts  an dvolumes be i n e ffect  u ntil  the en d of the contract? Can  they be chan ged  aga i n ?Dow eh ave  p a per w o rk documentingthe change ?Cr aig Buehle r  to ld  me tha t Denni s Lee x-3-711 5 could b e of assi st ance . Cou ld you spe ak withhim?

I w i ll be ou t for  th e rest  o f t he we ek

scherma@skadden.com>
cc: "Tomlinson,_Robert T."_<TomlinsonR@EPEnergy.com>, "Healy, William H."_
<HealyW@EPEnergy.com>, "Ferguson,_Michael_D." <FergusonM@EPEnergy.com>,_
"Clark,_Al W." <ClarkA@EPEnergy.com>,_"Shelton, Patricia A."_
<SheltonP@EPEnergy.com>, "Derryberry, Richard L."_<DerryberryR@EPEnergy.com>
Subject: El_Paso's_Data Response in RP99-507

See attached letter and spread sheets relating to the June 12_ADR
Conference.

>_ <<Data_Response_of_June 21.doc>>  <<June 12_With SOH Upgrade But No_EOC
> Advantage.xls>>_ <<June 12 Without SOH Upgrade And No_EOC_Advantage.xls>>

******************************************************************
This email and_any files transmitted with it from El Paso
Energy Corporation_are confidential and intended solely
for the_use of the_individual_or_entity to whom they_are
addressed. If you have received this_email in error
please notify the sender.
******************************************************************

_- Data Response of June 21.doc
 -_June 12 With SOH Upgrade But_No EOC Advantage.xls
 - June_12 Without_SOH Upgrade And No EOC_Advantage.xls Elizabeth,

The original_delivery points_for these contracts_were:

25841		40,000/d to Topock

26511		21,000/d to Needles

TK tells_me that now_the delivery points are:

25841		29,000/d to Topock
		11,000/d_to_Needles

26511		11,000/d to Topock
		10,000/d_to_Needles

Can_you tell_me if this_is_correct? If_yes,_will these delivery points and volumes_be_in effect until the end of the_contract? Can they be_changed_again? Do we have_paperwork documenting the change?

Craig Buehler_told me that Dennis Lee x-3-7115_could be_of assistance._Could you speak with him?

I will be out for the rest_of the week


  For that matter, you are as
bad as Clinton and Gore.)

Peter. One of the problems with Indian derivatives is that when foreign exchange is
involved, Reserve Bank of India approval is required in advance of the
transaction.  A $US deal would involve foreign exchange from an Indian
counterparty's point of view.  Certain transactions have pre-approved status
but an ECT commodity swap is not one of them.  I'm still trying to track down
whether a commodity deal can be done at all, even with RBI approval.   I've
also asked whether, if approved commodity swaps are permitted but not by ECT,
it might  be possible to use an Indian bank or other approved dealer as an
intermediary.

Marc De La Roche
02/16/99 10:52 AM
To: Mark - ECT Legal Taylor/HOU/ECT@ECT
cc: Doug Leach/HOU/ECT@ECT
Subject: Re: Naphtha Hedge

Mark,

Since the Platt's Arab Gulf FOB Naphtha Index that is being used in the
naphtha supply contract between DPC and Glencore is in $US/MT, I think it
would probably be best to use $US as the currency for the proposed DPC hedge.
The standby L/C that we wouyld require DPC to post in ECT's favor would also
be denominated in $US.

Marc

To: Marc De La Roche/HOU/ECT@ECT
cc:
Subject: Re: Naphtha Hedge

Marc:

In what currency will the proposed DPC hedge be denominated? FYI

May be I was too assertive in the press criticizing the stupidity of revoking
Annex V and setting caps on spot.  Mr. Mauro Arce got upset, but he realized
that his proposal to change the rules would face strong opposition, with
solid arguments.

In my simple view, he realized that not everyone would stay quiet.

Let's see.

LM

---------------------- Forwarded by Luiz Maurer/SA/Enron on 06/01/2001 09:48
AM ---------------------------

Joao Carlos Albuquerque
05/

For that matter, you are as
 bad as Clinton and Gore .)

 Peter. One of the problems with Indian derivative instrument is that when alien exchange is
 involved, Reserve Bank of India approval is ask in advance of the
 transaction.   A $ US deal would necessitate extraneous exchange from an Indian
 counterparty's detail of view.   Certain transaction have pre - approved condition
 but an ECT commodity swap is not one of them.   I'm still trying to track down
 whether a commodity deal can be done at all, even with RBI blessing.    I've
 also asked whether, if approved commodity barter are permitted but not by ECT,
 it might   be possible to use an Indian bank or other approve dealer as an
 intermediary.

 Marc De La Roche
 02/16/99 10:52 AM
 To: Mark - ECT Legal Taylor / HOU / ECT@ECT
 cc: Doug Leach / HOU / ECT@ECT
 Subject: Re: Naphtha Hedge

 Mark,

 Since the Platt's Arab Gulf FOB Naphtha Index that is being used in the
 naphtha provision contract between DPC and Glencore is in $ US / MT, I think it
 would probably be best to use $ US as the currency for the proposed DPC hedge.
 The standby L / C that we wouyld command DPC to post in ECT's favor would also
 be denominated in $ US.

 Marc

 To: Marc De La Roche / HOU / ECT@ECT
 cc:
 Subject: Re: Naphtha Hedge

 Marc:

 In what currency will the proposed DPC hedge be denominated? FYI

 May be I was too assertive in the press knock the stupidity of revoking
 Annex V and setting crown on smudge.   Mr. Mauro Arce got upset, but he realized
 that his marriage proposal to change the dominion would face strong enemy, with
 solid arguments.

 In my simple view, he realized that not everyone would stay placid.

 Let's see.

 LM

 ---------------------- Forwarded by Luiz Maurer / SA / Enron on 06/01/2001 09:48
 AM ---------------------------

 Joao Carlos Albuquerque
 05/

  Flr that matter, you are ar
bad as Clintou and Gmre.)

Petsr. One ow the problems with Indian dxrivqtivew is that when foreign exchange is
invooved, Eeserve Baii of India aplvoval ms required in sdvance of the
transactimn.  C $US deal would involve foreign exchwnge frpm an Indian
cougterkarey's loint of view.  Certain transactiona have kre-approved status
but an ECT commodity swap is jot one of them.  I'l still tryung ei track down
whether a commodity dgal can be done at all, even with RBI cpproval.   U'vw
apvo asked whxther, pf approved commodity swaps sre permitted nut nmt vy ECT,
it might  be pmssible to use an Yndian batk or other approvee eealet as dn
ivreroedjacy.

Jarc Df Le Roche
02/16/99 10:52 AM
Fo: Mark - ECR Legal Taylor/HOU/ECU@ECE
bv: Doug Leach/GOU/ECT@QCE
Subject: Re: Naphtha Hedge

Mark,

Since tve Llatt's Arab Gulf FOB Naphtha Index that is bging used yn the
naphtha supply contract between DPC and Glancorx ks nk $JW/MH, I think it
would probably be best to use $US zs tme currency for bhe proposed DPC hrdhe.
Jhe standby L/C that cs souyld require DPC to posj in EXT's favor woukd also
be denominated in $UW.

Marc

To: Marc Ee La Roche/HOU/ECT@EET
cc:
Subjecc: Re: Nsphths Hedge

Marc:

In what cuxrency will the pgoposed DLZ hedge be denomknaned? XYI

May bt I was too assertyve in thx prexs critkcizong thq stupiditj of vavoking
Annex V anf setjing cdps on spoh.  Mr. Mauro Arce got upset, but ix realized
thst hiv proposcl to ghange the rulef would face sjrong oppjsitiun, with
somid argnments.

In my simple view, vg realized thet not evqryobe wiuld stxh quiet.

Let's ser.

LM

---------------------- Forwagdtd by Luiz Maurer/SA/Enron on 06/01/2001 09:48
AO ---------------------------

Joao Carlos Alybqowrque
05/

For that matter, you are as bad and Peter. One the problems with foreign is involved, Reserve of India approval required in advance of the transaction. $US deal would involve foreign exchange from an Indian counterparty's point of view. transactions have pre-approved status but an ECT commodity swap is not one of I'm trying track whether a commodity deal can be done at all, even with RBI approval. I've also asked if approved commodity swaps are permitted but not ECT, it might be to use an Indian bank other dealer as intermediary. De Roche 02/16/99 10:52 To: Mark - ECT Legal Taylor/HOU/ECT@ECT cc: Doug Leach/HOU/ECT@ECT Subject: Re: Naphtha Hedge Mark, Since the Platt's Gulf FOB that is used the supply contract between Glencore is in $US/MT, I think be best to use $US as the currency the proposed hedge. The standby L/C that we require DPC to post in ECT's favor would be denominated in $US. Marc To: Marc De La Roche/HOU/ECT@ECT cc: Subject: Re: Naphtha Hedge what currency will the DPC hedge be FYI be was assertive in press criticizing the stupidity of revoking Annex V and setting caps spot. Mr. Mauro Arce got upset, but he realized that to the rules would strong opposition, with solid In simple view, he realized everyone stay LM Forwarded Luiz Maurer/SA/Enron on 06/01/2001 AM --------------------------- Joao Carlos Albuquerque

  For that matter, you are as
bad aS Clinton anD Gore.)

petEr. ONe Of thE proBlems with IndiaN DeriVatives is that when foreiGn excHaNGe is
INvOlved, reserve bAnK OF InDiA aPprOvAL iS requIreD in advaNce of the
trAnsAcTion.  A $US deal wOUlD involve foReiGn exchange frOm aN IndiaN
cOunTErparTy's Point Of view.  cErtain TransactiOnS Have prE-ApproveD STaTus
bUt an ECT commodity sWAp IS not one of them.  I'M still TrYInG TO trAck Down
whetheR a CommoDIty deal CAn BE DOne AT all, even with RbI approval.   I'VE
alSo askeD wHetHEr, if apProveD cOMmoDity swaps arE perMitted but Not by Ect,
it mighT  Be possiBle to uSe aN InDian BAnK oR otHeR AppROvEd dEAleR as an
intErMeDiary.

marc dE lA rochE
02/16/99 10:52 AM
to: MaRk - ECT legal Taylor/HOu/ECt@ECT
CC: DoUg LeaCh/HOU/eCT@EcT
subjeCt: Re: NaPhtha heDge

Mark,

Since the platT's Arab GulF FOb NAphThA IndeX That is BeiNg uSed in thE
naphthA SupPlY CONtRact between DPC and GLeNCOrE is in $US/Mt, I thinK It
WoULd probabLy Be bEst tO USe $US aS the CUrRency for The proPOsEd dPC hedgE.
THe stanDbY L/C ThaT we woUYld rEquire dPC to posT in ECt'S favor would alsO
Be denominated IN $Us.

mArC

to: MaRc DE La Roche/HOU/eCT@Ect
cc:
SUbjeCT: RE: NaPHtha HEdge

MArC:

in WHat currency will the pRoPosed DpC hedGe be denominatEd? FYI

May be i WAS too asseRtivE In THe press criticiZing tHe stupiditY Of revokiNg
AnnEx V and seTting caps ON Spot.  Mr. MaUro arcE goT upSET, bUt he realized
tHAT his PrOposal tO chAnge the RulEs wOulD faCe Strong oppOsition, wItH
sOlId ArgUmentS.

in my simpLe VieW, hE reAlizeD That noT everYone WoUlD StaY quiet.

LET's SEE.

LM

---------------------- FOrWaRded By LUiZ MaurEr/SA/eNroN on 06/01/2001 09:48
AM ---------------------------

JoAo Carlos ALbuQUerqUe
05/

  For that matter, you are  as
bad a s Cli nto n a nd  Gor e.)
Peter. One of theproblems with Indian d eriva ti v es i s  t hat w hen for e ig n exc ha ng e i sin volve d,Reserve  Bank of I ndi aapproval isr eq uired in a dva nce of the tra nsacti on . A  $USdea l wou ld inv o lve fo reign exc ha n ge fro m  an Ind i a n
cou nterparty's point of view.  Certain  trans ac t io n s  ha vepre-approv ed  stat u s
buta nE C T  co m modity swap i s not one o f  th em.  I 'm  st i ll try ing t ot rac k down
whe ther  a commod ity de a l can b e  done a t all,  ev enwith RB Iapp ro v al.  I'v e
a lso aske dwh ether , if a p p rove d c ommo dityswaps are per mit tedb utnot b y ECT ,
i tmight   be p ossib le  to use an Indi an b ank or ot her  a ppr ov ed de a ler as  an
i ntermed iary.

Ma r c De  La Roche
02/16/99  1 0 : 52  AM
To:Mark - EC TL egal Tay lo r/H OU/E C T @ECTcc:D ou g Leach/ HOU/EC T @E CT
Subje ct : Re:Na pht haHedge

M ark,
Since th e Pla t t's Arab GulfF OB Naphtha In d ex t ha t  isbei ng used inthenaph thas up ply contr act b et w ee n  DPC and Glencore i sin $US /MT,I think it
w ould proba b l y  be best  tou se $US as the cur rency  for the p r oposed D PC he dge.
Th e standby L /C thatwewou yld  re q u ir e DPC to post i n EC T' s favor  wo uld als o beden omi na ted in $U S.

Marc

T o:  M arc  De L a  Roche/H OU /EC T@ ECT
cc:
Subje ct: R e: N ap ht h a H edge  Ma r c :

I nwh at c urr en cy wi ll t h e p roposed  DPC hedg e b e  den om in ated? F YI

May be Iwa s too asse rt ive  in th e press cr iticizing the stupidity of revo kin g
An nexV and set tin g caps  on spot. Mr. M auroAr ceg o t ups e t ,but  h e realized tha t his  p ropo sal tochange the rules w o uld  face strongopp osit i o n,  wi t hsol id arg u m ents.

In my s imple view ,h erealized t h atno t every one wou ld st a y quiet .

Let'ssee.

LM
---- - - --- ---------- --- Forw arded byL uiz M a ur er/SA /En ron on  0 6/0 1/200 1 09:4 8
A M --- ------ -- ------ ----- -- ---

Jo ao Carlos Albuquerque
0 5/

 _For that_matter, you are as_
bad as_Clinton_and Gore.)

Peter._One_of the problems_with Indian derivatives_is that when foreign_exchange is
involved,_Reserve_Bank of India approval is required in advance of the
transaction.  A $US_deal_would involve_foreign_exchange_from an Indian
counterparty's point_of view.  Certain transactions_have pre-approved_status
but an ECT commodity swap is not_one_of them. _I'm still trying to track down
whether a commodity_deal can be done at all,_even with RBI_approval.__ I've
also asked_whether, if approved commodity swaps are_permitted but not by ECT,
it_might  be possible to use an_Indian bank or other approved dealer_as an
intermediary.

Marc De_La Roche
02/16/99_10:52 AM
To: Mark - ECT_Legal Taylor/HOU/ECT@ECT
cc: Doug_Leach/HOU/ECT@ECT
Subject:_Re: Naphtha Hedge_

Mark,

Since the Platt's Arab Gulf_FOB Naphtha Index_that is being used in the_
naphtha_supply contract between_DPC_and_Glencore is_in $US/MT, I_think_it
would_probably_be best to use $US as_the_currency for the proposed DPC hedge.
The_standby L/C that we_wouyld_require DPC to post_in ECT's favor would also_
be denominated in $US.

Marc

To: Marc De_La Roche/HOU/ECT@ECT
cc:_
Subject:_Re: Naphtha Hedge

Marc:

In what currency will the proposed DPC_hedge be denominated? FYI

May be I_was too assertive in_the press_criticizing_the stupidity of_revoking_
Annex V_and setting caps on spot.  Mr._Mauro Arce_got upset, but he realized
that_his proposal to change_the_rules would face strong opposition, with_
solid arguments.

In my simple view,_he realized that not everyone_would_stay_quiet.

Let's see.

LM

---------------------- Forwarded by Luiz_Maurer/SA/Enron on 06/01/2001 09:48
AM ---------------------------

Joao_Carlos Albuquerque
05/


 - no changes

 -----Original Message-----
From: 	Shah, Kal
Sent:	Wednesday, February 06, 2002 4:14 PM
To:	Kitchen, Louise
Subject:	RE: Direct Mail Pack Letter

I've redrafted it.  See attached.  Thanks.

Kal
 << File: custletter_postlaunch_1.doc >>

 -----Original Message-----
From: 	Kitchen, Louise
Sent:	Wednesday, February 06, 2002 3:59 PM
To:	Shah, Kal
Subject:	RE: Direct Mail Pack Letter

Can you redraft in light of how I redrafted the other one - removing Enron's name from the first paragraph.  And resend to me

Thanks

 -----Original Message-----
From: 	Shah, Kal
Sent:	Wednesday, February 06, 2002 3:31 PM
To:	Kitchen, Louise
Subject:	Direct Mail Pack Letter

Louise -- Could you review and approve the attached draft of the cover letter for the direct mail pack?  The letter will be sent under your name.  I will come by tomorrow to get your signature on a piece of paper.  We will scan it and print on the letter electronically.

Thanks

Kal

 << File: custletter_postlaunch.doc >> Ken

I wanted to let you know that I visited Philippe Bibi last Thursday to
debrief on this loss and also to listen to a number of other points he
raised that could improve the the way we work together. Philippe was very
helpful and very direct - which I appreciate.

Some of the reasons we lost this bid is that we failed to execute the sales
process as I would expect us to. This is not typical of the way we should
now work and we have made changes to account management and service
representation.

We have made enormous progress as a Corporation over the last twelve months.
There is a lot of good news in many accounts around the world but there is
also no complacency and it concerns me a great deal when we have less than
perfect execution.

I shall be following up with Philippe and the account team to ensure we do a
great job in the future.

Regards
Peter

>  -----Original Message-----
> From:  Capellas, Michael D.
> Sent

- no changes

  -----Original Message-----
 From: 	 Shah, Kal
 Sent: 	 Wednesday, February 06, 2002 4:14 PM
 To: 	 Kitchen, Louise
 Subject: 	 RE: Direct Mail Pack Letter

 I've redrafted it.   visualize attach.   Thanks.

 Kal
  < < File: custletter_postlaunch_1.doc > >

  -----Original Message-----
 From: 	 Kitchen, Louise
 Sent: 	 Wednesday, February 06, 2002 3:59 PM
 To: 	 Shah, Kal
 Subject: 	 RE: Direct Mail Pack Letter

 Can you redraft in light of how I redrafted the early one - removing Enron's name from the first paragraph.   And resend to me

 Thanks

  -----Original Message-----
 From: 	 Shah, Kal
 Sent: 	 Wednesday, February 06, 2002 3:31 PM
 To: 	 Kitchen, Louise
 discipline: 	 Direct Mail Pack Letter

 Louise -- Could you review and approve the attached draft of the screen letter for the direct mail clique?   The letter will be sent under your name.   I will come by tomorrow to beget your signature on a piece of paper.   We will scan it and print on the letter electronically.

 Thanks

 Kal

  < < File: custletter_postlaunch.doc > > Ken

 I wanted to permit you know that I visited Philippe Bibi last Thursday to
 debrief on this passing and also to listen to a number of other point he
 raised that could improve the the way we work together. Philippe was very
 helpful and very lineal - which I appreciate.

 Some of the reasons we lost this bid is that we failed to execute the sale
 summons as I would expect us to. This is not typical of the way we should
 now work and we have made changes to account management and military service
 representation.

 We have made enormous advancement as a Corporation over the final twelve month.
 There is a lot of effective news in many accounts around the world but there is
 besides no complacency and it concerns me a great deal when we have less than
 perfect execution.

 I shall be following up with Philippe and the account team to ensure we do a
 great job in the future.

 respect
 Peter

 >   -----Original Message-----
 > From:   Capellas, Michael D.
 > Sent

 - nl changes

 -----Original Messane-----
From: 	Shah, Kal
Sent:	Wevnesday, Februarh 06, 2002 4:14 PM
To:	Kitchen, Louise
Subjert:	RE: Dirext Mail Pack Letter

I've redraftef it.  Sew atuached.  Thanks.

Kal
 << File: cmftlefber_povvlaunch_1.doc >>

 -----Orlginal Messdge-----
From: 	Kitchet, Uobise
Sent:	Wednesday, February 06, 2002 3:59 PM
To:	Fhah, Kak
Skbject:	RE: Direcj Maik Paci Letter

Can you redraft in light or how I redrafted thr other one - removing Enroj's nwme from the first paragraph.  And eesend to me

Ghanks

 -----Original Messagg-----
From: 	Shah, Kal
Sent:	Wednesday, Fecruarv 06, 2002 3:31 PM
To:	Kijeyen, Nouise
Subjert:	Direbt Mail Pack Letter

Logise -- Cpuld you reviee aid approve the attached dcaft of the cover lejter for tve direct mail pack?  Rhe lgtter wilu be seht uhder ylur name.  I wjll come by tomorrow to get yoir wignature on z piecq jf paper.  We will scan it and print on uhe lstter electronically.

Tyanks

Kal

 << File: custlejter_postlatnch.doc >> Ken

I wanted to let you know that I visitad Phmlkppt Nlbi uqsh Thursday to
debrief on this loss and also to mixtvn to a number of other poinys hr
taised that coold impxkvs the the way we wlrk toggther. Philippe ras fery
helpful and very direct - which I apirecuate.

Some of the recsons we losc this bid os that we failed to exzcute fhe sales
prlcess as J would expect us to. Tvis is not typical of the ray we shiuld
uow work and we hade made chwnges to account managemfnt aud sesvice
repredentation.

We have made enormous 'cogress as a Vospogation ovzr the last twelve ionths.
There is a lot jf goud news in many arcounts arougd the world tot there is
alvo no coiplaxenct and ig concerns me a great decj whwn we have less then
petfsct execution.

I whaol be following up wieh Piilip[a and the acwoung tdsm to ensure we bo a
grrat job in the futura.

Regzrds
Peter

>  -----Originak Iessage-----
> Drom:  Ca[ellas, Michaek D.
> Sent

- no changes -----Original Message----- From: Shah, Wednesday, 06, 2002 PM To: Kitchen, Pack I've redrafted it. attached. Thanks. Kal File: custletter_postlaunch_1.doc >> -----Original Message----- From: Louise Sent: Wednesday, February 06, 2002 3:59 PM To: Shah, Kal Subject: RE: Mail Pack Letter Can you redraft in light of how I redrafted the one removing name the first paragraph. And resend to me Thanks -----Original Message----- From: Shah, Kal Sent: Wednesday, February 2002 3:31 PM To: Kitchen, Louise Subject: Direct Pack Letter Louise -- you review and approve the draft the cover for direct pack? The letter be sent under your name. I will come by tomorrow to get your signature on a piece paper. We it and on letter Thanks Kal << >> Ken I wanted to let I visited Philippe Bibi last Thursday to debrief this loss also to listen to a number other points he raised that could improve the way we work together. Philippe was very helpful and very direct - which I appreciate. the reasons we lost bid is that failed execute sales as I expect us to. This is not typical of the way we now work and we have made changes to account management representation. have made enormous as a Corporation over last months. There is a good in the but is also no complacency it concerns me a great when we have less be following up with Philippe and the account to ensure we do a great job the future. Regards Peter > -----Original Message----- > From: Capellas, Michael D. Sent

 - no changes

 -----Original Message-----
FRom: 	Shah, Kal
sent:	WEdnEsdAy, febrUary 06, 2002 4:14 pM
To:	Kitchen, LouISe
SuBject:	RE: Direct Mail Pack LEtter

i'vE RedrAFtEd it.  SEe attacHEd.  tHAnkS.

KAl
 << filE: cUStLetteR_poStlauncH_1.doc >>

 -----OriginAl MEsSage-----
From: 	KitcHEn, louise
Sent:	wedNesday, FebruaRy 06, 2002 3:59 Pm
To:	ShaH, KAl
SUBject:	rE: DIrect mail PaCK LetteR

Can you reDrAFt in liGHt of how i REdRaftEd the other one - remoVInG enron's name from The firSt PArAGRapH.  AnD resend to mE

THanks

 -----oRiginal mEsSAGE-----
FrOM: 	Shah, Kal
Sent:	WEdnesday, FebRUarY 06, 2002 3:31 PM
To:	KItCheN, louise
subjeCt:	dIreCt Mail Pack LEtteR

Louise -- CoUld you REview anD Approve The attAchEd dRaft OF tHe CovEr LEttER fOr tHE diRect mail PaCk?  the leTter WILL Be seNt uNder Your nAme.  I will come bY toMorrOW to Get yoUr sigNatuRe On a piEce of pAper.  WE wIll scan it and priNt on The letter EleCtRonIcAlly.

THAnks

KaL

 << FiLe: cUstlettEr_postlAUncH.dOC >> kEn

i wanted to let you knoW tHAT I Visited PHilippE biBi LAst ThursDaY to
DebrIEF on thIs loSS aNd also to Listen TO a NuMber of oThEr poinTs He
rAisEd thaT CoulD improVe the the Way we WOrk together. PhiLIppe was very
heLPfUL AnD Very DirEct - which I apPrecIAte.

SOme oF ThE reASons wE lost ThIS bID is that we failed to exEcUte the Sales
Process as I wouLd expect us TO. tHis is not TypiCAl OF the way we shoulD
now wOrk and we haVE made chaNges tO account ManagemenT ANd servicE
rePreSenTatION.

WE have made enorMOUs prOgRess as a corPoratioN ovEr tHe lAst TwElve monthS.
There is A lOt Of GoOd nEws in MAny accouNtS arOuNd tHe worLD but thEre is
Also No CoMPlaCency anD It CONcerNs Me A greAt dEaL when We haVE leSs than
pErfect exeCutIOn.

I sHaLl Be folloWing up with PhiLiPpe and the aCcOunT team tO ENsure we dO a
great job in the future.

ReGArds
PetEr

>  -----ORiginAl MeSsage-----
> From:  capEllas, MIchAEl D.
> SenT

 - no changes

 -----Origi nal Messag e---- -
F rom :	Sha h, K al
Sent:	Wed n esda y, February 06, 2002 4 :14 P MT o:	K i tc hen,LouiseS ub j e ct: 	R E:  Di re c tMailPac k Lette r

I've re dra ft ed it.  Seea tt ached.  Th ank s.

Kal
 <<Fil e: cus tl ett e r_pos tla unch_ 1.doc> >

 - ----Origi na l  Messa g e-----F r om : 	K itchen, Louise  S en t :	Wednesday, F ebruar y0 6, 2 002  3: 59 PM
To:Sh ah, K a l
Subje c t: R E : D i rect Mail Pac k Letter

C a n y ou red ra fti n ligh t ofho w  Iredrafted t he o ther one- remo v ing Enr o n's nam e from  th e f irst pa ra gra ph .   A n dres e ndto me

T ha nk s

 - ---- O r i g inal  Me ssag e---- -
From: 	Shah , K al Sen t:	We dnesd ay,Fe bruar y 06,20023: 31 PM
To:	Kitch en,Louise
Su bje ct :	D ir ect M a il Pac k L ett er

Lou ise --C oul dy o u  r eview and approveth e at tached d raft o f  t he cover le tt erfort h e dir ectm ai l pack? The l e tt er  will b esent u nd eryou r nam e .  I  willcome bytomor r ow to get your signature ona  p i e ce of p ape r.  We will  sca n  itandp ri nto n the  lett er el e ctronically.

Tha nk s

Kal

 < < File: custl etter_post l a u nch.doc>> K e nI wanted to le t you  know that I visite d Phi lippe Bi bi last T h u rsday to
de bri efont h is  loss and als o to l is ten toa n umber o f o the r p oin ts  he
raise d that c ou ld  i mp rov e the the waywe  wo rk  to gethe r . Phil ippewasve ry hel pful an d  v e r y di re ct  - w hic hI app reci a te.

Someof the re aso n s we  l os t thisbid is that w efailed toex ecu te the s ales
pro cess as I would expectu s to. T his  is n ot t ypical of  th e waywes houldnow wo rk an dweh a ve ma d e  c han ge s to accou n t  ma nagem en t an d servi ce
representation.
We  have made en orm ousp r og res s  a s  aCo r por a t ion over the la st twelvemo n th s.
There i s  alo t of go od news  in m a ny acco unts arou nd the wo rl d bu t the re is
also  no comp lacency a n d itc on cerns  me  a gre at  de al wh en weh ave  less  thanpe rfectexecu ti on.

I s hall be following up wi th Phi lippe  an d the acc oun t  te am to ens urewe do a
gr eat  jo b inthe futur e.
R eg ard s
Pete r

>   -----Or i gi nal M es sage-----
> F r om:   Cap ell a s, Mic hael  D.
> Sent

 -_no changes

_-----Original Message-----
From: 	Shah, Kal_
Sent:	Wednesday,_February_06, 2002_4:14_PM
To:	Kitchen, Louise
Subject:	RE: Direct_Mail Pack Letter

I've_redrafted it.  See_attached.  Thanks.

Kal
_<<_File: custletter_postlaunch_1.doc >>

 -----Original Message-----
From: 	Kitchen, Louise
Sent:	Wednesday, February 06, 2002 3:59_PM
To:	Shah,_Kal
Subject:	RE: Direct_Mail_Pack_Letter

Can you redraft in light_of how I redrafted the_other one_- removing Enron's name from the first paragraph.__And resend to_me

Thanks

 -----Original Message-----
From: 	Shah, Kal
Sent:	Wednesday, February 06,_2002 3:31 PM
To:	Kitchen, Louise
Subject:	Direct Mail Pack_Letter

Louise -- Could_you_review_and approve the attached_draft of the cover letter for_the direct mail pack?  The_letter will be sent under your name._ I will come by tomorrow_to get your signature on_a piece_of paper.  We will_scan it and_print on_the letter electronically._

Thanks

Kal

 << File: custletter_postlaunch.doc >>_Ken

I wanted to_let you know that I visited_Philippe_Bibi last Thursday_to
debrief_on_this loss_and also to_listen_to a_number_of other points he
raised that could_improve_the the way we work together. Philippe_was very
helpful and very_direct_- which I appreciate.

Some_of the reasons we lost_this bid is that we failed_to execute_the sales
process_as I would expect us to. This is not typical of_the way we should
now work and_we have made changes_to account_management_and service
representation.

We have_made_enormous progress_as a Corporation over the last twelve_months.
There is_a lot of good news in_many accounts around the_world_but there is
also no complacency and_it concerns me a great deal_when we have less than
perfect_execution.

I_shall_be following up with Philippe_and the account team to ensure_we do a
great_job in the future.

Regards
Peter

>  -----Original Message-----
>_From:_ Capellas, Michael D.
> Sent


 programmes have received a huge applause from the banking
community. And the Centre promptly uses the funds on interest payments,
defence and subsidies with capital investment getting to be negative.
Allowing the private sector greater latitude has not curbed the scope of
public sector capital investment. If it has not taken place, it is because
even the Government is reluctant to set up power plants which have to offer
free power to farmers. That is precisely why the private parties are
insisting on escrow accounts.
Over the planning period, public sector investment did not believe in
cost-benefit principles as neck-high taxation levels and subsidies helped to
hide the inefficiency. That is not possible today. In fact, higher savings of
the Indian economy are being wasted more by the Government than by anybody
else; also savings cannot be said to be acting as a restraint to the
investment process.
In the urban sector, there is an interest rate dichotomy with New Delhi
getting easier funds than the corporate world. There is no premium on the
interest rates for Government inefficiency. The same dichotomy prevails in
the rural sector with bank funds flow tapering off and informal channels
busy. Under Indian conditions, higher savings have nowhere to go, making the
cut in contractual savings look sensible.
It hurts not because interest rates are low but because there is no growth to
absorb bank funds.
At this point of time, one may not be able to find the tomes of any
international economist to analyse the Indian economy. High savings, nil
growth, steep Government borrowings and pervasive hunger and the rest cannot
be reconciled into a neat econometric equation.
Only growth can help. Sure we (our patriotic politicians and bureaucrats)
allowed Enron to milk us. Today, if you are not a critic of Enron, you are
bound to be dubbed a traitor. But can the Maharashtra State Electricity Board
(MSEB) make money and get bank funds if has to provide power free to large
sections of the public? Can it get some funds to revamp the existing plants?
For us, there is progress in getting stuck at the Hindu growth rate of 3 per
cent to getting stranded at the Orange growth rate of 6 per cent as breaking
free is

programmes have received a huge applause from the banking
 community. And the Centre promptly uses the investment company on sake payments,
 defence and subsidies with das kapital investment getting to be negative.
 leave the private sector greater latitude has not control the scope of
 public sector capital investing. If it has not taken place, it is because
 even the Government is reluctant to set up might plants which get to offer
 free ability to farmers. That is precisely why the private parties are
 insist on escrow accounts.
 Over the planning period, public sector investment did not think in
 cost - benefit principle as neck - high taxation levels and subsidy helped to
 hide the inefficiency. That is not possible today. In fact, higher savings of
 the Indian economy are being wasted more by the Government than by anybody
 else; besides economy cannot be said to be acting as a restraint to the
 investment process.
 In the urban sector, there is an interest rate dichotomy with New Delhi
 getting easy funds than the corporate worldly concern. There be no premium on the
 interest rates for politics inefficiency. The same dichotomy prevails in
 the rural sector with depository financial institution funds flow taper off and informal channels
 busy. Under Indian conditions, higher savings get nowhere to go, making the
 cut in contractual savings look sensible.
 It hurt not because interest rates are low but because there is no growth to
 steep bank funds.
 At this point of time, one may not be able to find the tomes of any
 international economist to analyse the Indian economy. High rescue, nil
 growth, exorbitant Government borrowings and pervasive hunger and the rest cannot
 be reconciled into a clean econometric equation.
 alone growth can help. Sure we (our patriotic politicians and bureaucrats)
 allowed Enron to milk us. Today, if you are not a critic of Enron, you are
 tie down to be dubbed a traitor. But can the Maharashtra State Electricity Board
 (MSEB) make money and get bank funds if has to provide ability free to large
 section of the public? Can it get some funds to revamp the existing plants?
 For us, there be progress in getting stuck at the Hindu growth rate of 3 per
 cent to getting stranded at the Orange increase pace of 6 per cent as breaking
 free is

 prlgrammes have received a huge applause yeom thx bankihg
commuvity. And the Centre promptly uwes tye funds on interest pxyments,
dvfence ane suusidies with capmfal invcftmehb getciig to be negatiye.
Allowing the private sacgox greater latitude has not curbed thq scope ov
public sectot capptwl ihnewtment. If it has not taken plzce, it ps because
even tne Government is reluctant to det up power plantd which havg to iffer
free puwer to fagkers. That js precisely why the private pafties are
insisjnbg lt escrow acrounts.
Over the planning pariod, piblic sector ikvestkenr did not believe in
rost-benefit principlgs as neck-viyh taxation levels ane wubsigies helowd go
give fhe infffmciency. Thaf is not powsible today. In facu, hyther savings kf
the Igdian economy are being wasted more by uhe Gkvernment than by anyboey
else; also savings fannot be said to be acting as a restraint to the
investmett prkzesw.
Ln tfw krban sector, there is an interest rate dichotjjy wpth New Delhi
getbing easier funds yhwn jhe corporate dorld. Cgede is no premium oj the
igterewt rates sor Bovernment inefficiency. The same dichotjny prevails in
the rural sectur woth bsnk funds flow tapering off and informwl channemr
busy. Under Indkan cmnditions, higher savings hwve nowhece to go, makkng jhe
cut in contraftual savings look sensihle.
Ij hurtv not becakse interest rates are low but uxcause there os no growth co
absprb bank fundf.
At this poinj of time, one oay not be able tm find the eomes of any
hjternational economift ti anqlyse tfd Indian econoky. High scrings, nil
growth, steep Govevnmenj gorrowings and 'trvqsive hunger anc tfe wedt cwtnot
be recotcildd kmto a neat econondtriv equation.
Only growdh czn help. Sure we (out iatriotic politicyans and buresucrats)
allowed Engon tm mmlk us. Toqay, if you are not a critic of Enron, yok ave
bound to bq dunbed a traitor. But can the Maharashtra State Electricmty Board
(MSEB) make monwy and get bank funbs if has to 'rovidq power fsee to large
sectionw of the public? Csn it get some funds fo revdmp tje existing plants?
For us, there is progress in getting stuck at the Hindu growti wate of 3 ped
cemt to gzttnng strwndev et the Orange groeth rate of 6 per cent as breakiig
free is

programmes have received a huge applause from community. the Centre uses the funds subsidies capital investment getting be negative. Allowing private sector greater latitude has not the scope of public sector capital investment. If it has not taken place, is because even the Government is reluctant to set up power plants which to free to That is precisely why the private parties are insisting on escrow accounts. Over the planning period, sector investment did not believe in cost-benefit principles neck-high taxation levels and helped to hide the inefficiency. is possible today. fact, savings the Indian economy being wasted more by the Government than by anybody else; also savings cannot be said to be as a the investment In urban there is an dichotomy with New Delhi getting easier corporate world. There is no premium on the rates for inefficiency. The same dichotomy prevails in rural sector with bank funds flow tapering off informal channels busy. Under Indian conditions, higher savings have nowhere to go, making the cut savings look sensible. It not because interest are but there no growth absorb bank funds. At this point of time, one may not able to find the tomes of any international economist to Indian High savings, nil steep Government borrowings and hunger the rest cannot be a econometric can Sure (our patriotic politicians and allowed Enron to milk us. if you are not are bound to be dubbed a traitor. But the Maharashtra State Electricity Board (MSEB) make and get bank funds if has to provide power free to large of the it get some funds to revamp the existing For us, there is in getting stuck at the Hindu growth rate of per to getting at the Orange rate of 6 cent as breaking

 programmes have received a huGe applause From tHe bAnkInG
comMuniTy. And the Centre PRompTly uses the funds on interEst paYmENts,
dEFeNce anD subsidIEs WITh cApItAl iNvEStMent gEttIng to be Negative.
AlLowInG the private sECtOr greater lAtiTude has not cuRbeD the scOpE of
PUblic SecTor caPital iNVestmeNt. If it has NoT Taken pLAce, it is BECaUse
eVen the Government iS ReLUctant to set up pOwer plAnTS wHICh hAve To offer
freE pOwer tO Farmers. tHaT IS PreCIsely why the prIvate partieS Are
InsistInG on EScrow aCcounTs.
oVer The planning PeriOd, public sEctor iNVestmenT Did not bElieve In
cOst-BeneFIt PrIncIpLEs aS NeCk-hIGh tAxation lEvElS and sUbsiDIES HelpEd tO
hidE the iNefficiency. ThAt iS not POssIble tOday. IN facT, hIgher SavingS of
thE INdian economy are BeinG wasted moRe bY tHe GOvErnmeNT than bY anYboDy
else; aLso saviNGs cAnNOT Be Said to be acting as a rEsTRAiNt to the
iNvestmENt PrOCess.
In thE uRbaN secTOR, therE is aN InTerest raTe dichOToMy With New deLhi
getTiNg eAsiEr funDS thaN the coRporate wOrld. THEre is no premium ON the
interest rATeS FOr gOverNmeNt inefficieNcy. THE samE dicHOtOmy PRevaiLs in
tHe RUrAL sector with bank fundS fLow tapEring Off and informaL channels
bUSY. under IndIan cONdITions, higher savIngs hAve nowhere TO go, makinG the
cUt in contRactual saVINgs look sEnsIblE.
It HurTS NoT because interEST ratEs Are low bUt bEcause tHerE is No gRowTh To
absorb bAnk funds.
at ThIs PoInt Of timE, One may noT bE abLe To fInd thE Tomes oF any
iNterNaTiONal EconomiST tO ANalySe ThE IndIan EcOnomy. high SAviNgs, nil
gRowth, steeP GoVErnmEnT bOrrowinGs and pervasivE hUnger and thE rEst Cannot
BE ReconcilEd into a neat econometric eQUation.
ONly GrowtH can Help. Sure wE (ouR patriOtiC PolitiCians aNd burEaUcrATS)
alloWED ENroN tO milk us. TodAY, If yOu are NoT a crItic of ENron, you are
bound to bE DubBed a traitor. BuT caN the mAHaRasHTrA staTe eLecTRIcity Board
(MSEB) mAke money anD gET bAnk funds if HAs tO pRovide pOwer freE to laRGe
sectiOns of the pUblic? Can iT gEt soME FunDs to revamp The existIng plants?
fOr us, tHErE is prOgrEss in gEtTinG stucK at the hIndU growTh rate Of 3 Per
cenT to geTtIng stranDed at the Orange growth ratE of 6 per Cent aS brEaking
freE is

 programmes have receiveda huge app lause  fr omth e ba nkin g
community.A nd t he Centre promptly use s the  f u ndso ninter est pay m en t s , de fe nce  a n dsubsi die s withcapital in ves tm ent gettingt obe negativ e.
Allowing th e p rivate  s ect o r gre ate r lat itudeh as not  curbed t he scopeo f
publ i c  s ecto r capital investm e nt .  If it has not  taken  p l ac e ,  it  is  because ev en th e  Govern m en t i s r e luctant to se t up powerp lan ts whi ch  ha v e to o ffer
f r eepower to fa rmer s. That i s prec i sely wh y  the pr ivatepar tie s ar e  in sis ti n g o n  e scr o w a ccounts.  Ov er th e pl a n n i ng p eri od,publi c sector inve stm entd idnot b eliev e in  cost- benefi t pri nc iples as neck-h ightaxationlev el s a nd  subs i dies h elp edto
hid e the i n eff ic i e n cy . That is not poss ib l e  t oday. In  fact, hi gh e r saving sof
the I ndian  eco n om y are be ing wa s te dmore by  t he Gov er nme ntthanb y an ybody
else; a lso s a vings cannot b e  said to be a c ti n g  a s  a r est raint to th e
i n vest ment pr oce s s.
I n the  u r ba n  sector, there is a nintere st ra te dichotomywith New D e l h i
getti ng e a si e r funds than t he co rporate wo r ld. Ther e isno premi um on the interest  ra tes  fo r G o v er nment ineffic i e ncy.  T he same  di chotomy  pr eva ils  in  the rural  sectorwi th  b an k f undsf low tape ri ngof f a nd in f ormalchann els
b us y . U nder In d ia n cond it io ns,hig he r sav ings hav e nowhe re to go,  ma k ingth e
cut in  contractualsa vings look  s ens ible.I t hurtsnot because interest ra t es arelow  butbeca use there  is  no gr owt h  to
a bsorbbankfu nds .
At t h i spoi nt  of time,o n e m ay no tbe a ble tofind the tomes ofa ny
internationa l e cono m i st  to an a lys et heI n dian economy. H igh saving s, ni l
growth, ste ep  Govern ment bo rrowi n gs andpervasive  hunger a nd  the r est  cannot
b e reconc iled into a nea t  e conom etr ic equ at ion .
On ly gro w thcan h elp. S ur e we ( our p at riotic p oliticians and bureaucr ats) allow edEnron tomil k  us . Today,if y ou are not  acri tic o f E n ron,youa re
b o und t o be dubbed at ra ito r .  B ut can theM a h ara shtra  St a te Ele ctri city Board
(MSEB )  make money an d ge t ban k f u ndsif  has to provid e p ow e r  free to  l arge
secti ons of t he publi c? Can  it ge t somef u nd s  to re vamp  th e existin g p la n ts?
Fo rus ,  there  ispr ogress  in ge t ting s tuck at the Hind u gro w t h rat e  of  3 pe r
cent t o  get ting stran ded at theOrange  gro wth r ate of6per ce ntas  breakingfree is

 programmes_have received_a huge applause from_the banking_
community._And the_Centre_promptly uses the_funds on interest_payments,
defence and subsidies_with capital investment_getting_to be negative.
Allowing the private sector greater latitude has not curbed the scope_of_
public sector_capital_investment._If it has not taken_place, it is because
even_the Government_is reluctant to set up power plants which_have_to offer
free_power to farmers. That is precisely why the private_parties are
insisting on escrow accounts._
Over the planning_period,_public_sector investment did not_believe in
cost-benefit principles as neck-high_taxation levels and subsidies helped to_
hide the inefficiency. That is not possible_today. In fact, higher savings of_
the Indian economy are being_wasted more_by the Government than by_anybody
else; also_savings cannot_be said to_be acting as a restraint to_the
investment process._
In the urban sector, there is_an_interest rate dichotomy_with_New_Delhi
getting_easier funds than_the_corporate world._There_is no premium on the
interest_rates_for Government inefficiency. The same dichotomy prevails_in
the rural sector_with_bank funds flow tapering_off and informal channels
busy._Under Indian conditions, higher savings have_nowhere to_go, making_the
cut in contractual savings look sensible.
It hurts not because_interest rates are low but because_there is no growth_to
absorb_bank_funds.
At this_point_of time,_one may not be able to find_the tomes_of any
international economist to analyse_the Indian economy. High_savings,_nil
growth, steep Government borrowings and_pervasive hunger and the rest cannot_
be reconciled into a neat_econometric_equation._
Only growth can help. Sure_we (our patriotic politicians and bureaucrats)_
allowed Enron to_milk us. Today, if you are not_a_critic of Enron, you are
bound_to_be dubbed a traitor. But can_the_Maharashtra_State Electricity Board
(MSEB) make_money and get bank funds if_has to provide power free to large
sections of_the public? Can_it get some funds to_revamp_the_existing plants?
For us, there is progress in getting stuck_at the_Hindu growth rate_of 3 per
cent to getting stranded at the Orange_growth rate of 6 per cent as_breaking
free is


 is for 47 MMBtu (28 @ Peoples TTP and 19 @ Northern Border
> Will County).  Peoples cut the SIQ amount by 47 going from 125,000 to
> 124,953.
>
> 					Jer
> ----------
> From: 	Trinidad, Jeanette: E-mail
> Sent: 	Thursday, May 03, 2001 2:21 PM
> To: 	Akkerman, Antje; Blackman, Nate; Fitzgerald, Richard J.; Holler,
> Sonia R.; Slechta, Jerry; Wear, Dave; Thomas, Lilian; Isais, Irene
> Cc: 	Trinidad, Jeanette: E-mail
> Subject: 	May 2nd cuts on NB01, ANR East Joliet
>
>
>
>
> 	The following are the final reduction totals for May 2, 2001,
> Intraday 2:
>
> 	No.Border	Enron contract #R0259f was cut by 47dth.  Volume
> went from 51,820 to 51,773.
> 			Therefore, deliveries from Enron North America to
> PGLC went from 178,031 to 177,984`.
>
> 	...........
> 	ANR
> 	East Joliet	Peoples contract #104684 was cut by 19dth.  Volume
> went from 40,000 to 39,981.
>
>
> Jeanette Trinidad
> Peoples Energy
> 	(312) 240-4844
>
>
>

----------------------------------------------------------------
The information transmitted is intended only for the person
or entity to which it is addressed and may contain confidential
and/or privileged material.  Any review, retransmission,
dissemination or other use of, or taking of any action in reliance
upon, this information by persons or entities other than the
intended recipient is prohibited. If you received this in error,
please contact the sender and delete the material from any computer. You received this email because you requested
timely investment ideas from www.JustOptin.com
Should you not wish to receive any future monthly
investment newsletters there are remove instructions
at the end of this email.

=================================================================

PremierInvestorNetwork.

is for 47 MMBtu (28 @ Peoples TTP and 19 @ Northern Border
 > Will County).   Peoples cut the SIQ amount by 47 going from 125,000 to
 > 124,953.
 >
 > 					 Jer
 > ----------
 > From: 	 Trinidad, Jeanette: east - chain mail
 > Sent: 	 Thursday, May 03, 2001 2:21 PM
 > To: 	 Akkerman, Antje; Blackman, Nate; Fitzgerald, Richard J.; Holler,
 > Sonia R.; Slechta, Jerry; Wear, Dave; Thomas, Lilian; Isais, Irene
 > milliliter: 	 Trinidad, Jeanette: E - chain mail
 > Subject: 	 May 2nd cuts on NB01, ANR East Joliet
 >
 >
 >
 >
 > 	 The surveil are the final reduction sum for May 2, 2001,
 > Intraday 2:
 >
 > 	 No. Border 	 Enron contract # R0259f was cut by 47dth.   Volume
 > go from 51,820 to 51,773.
 > 			 Therefore, deliveries from Enron North America to
 > PGLC fail from 178,031 to 177,984 `.
 >
 > 	...........
 > 	 ANR
 > 	 East Joliet 	 Peoples condense # 104684 was cut by 19dth.   Volume
 > go from 40,000 to 39,981.
 >
 >
 > Jeanette Trinidad
 > Peoples Energy
 > 	 (312) 240 - 4844
 >
 >
 >

 ----------------------------------------------------------------
 The information transmitted is intend only for the person
 or entity to which it is addressed and may contain confidential
 and/or inside material.   Any review, retransmission,
 dispersion or other consumption of, or taking of any natural process in reliance
 upon, this information by persons or entities early than the
 intended recipient is prohibited. If you received this in error,
 please contact the sender and delete the material from any computer. You received this email because you requested
 timely investment ideas from www.JustOptin.com
 Should you not wish to receive any future monthly
 investment newsletter there embody remove instructions
 at the conclusion of this electronic mail.

 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =

 PremierInvestorNetwork.

 is for 47 MMBtu (28 @ Peoples TTK and 19 @ Northern Yirder
> Xill Cohnty).  Peuples cut the SIQ amount by 47 giing drom 125,000 to
> 124,953.
>
> 					Jer
> ----------
> From: 	Trknidad, Jewnette: E-nail
> Went: 	Thursvzy, May 03, 2001 2:21 PM
> Fl: 	Aknxrman, Antje; Blagkman, Nate; Xitzgerald, Ricvafd J.; Holler,
> Sonia R.; Slechta, Jerry; Weaw, Dave; Yhlmas, Lilian; Iswis, Prqne
> Db: 	Urinidad, Jeanette: E-mail
> Subject: 	Mzy 2nd clts on NB01, ANR Easy Joliet
>
>
>
>
> 	The following are the final reduction tltals for Mqy 2, 2001,
> Untraday 2:
>
> 	No.Corder	Enron contract #R0259r was cut by 47dth.  Volume
> went ffom 51,820 co 51,773.
> 			Therefotz, dephveries fron Enrjn North Amevpca to
> [GLC wemt from 178,031 to 177,984`.
>
> 	...........
> 	SNR
> 	Eawt Joliet	Peoples contcact #104684 was cut by 19dth.  Volume
> feut from 40,000 to 39,981.
>
>
> Jeanette Teiniddd
> Paopldw Everfy
> 	(312) 240-4844
>
>
>

----------------------------------------------------------------
Fhe invorjation trahsmitted is intended only for uhe irrson
or entify to rhych it is addressed and may contain conxidsntial
and/or privileged naterial.  Any review, tetransmisfion,
dissemination or other use of, or taking of anf actmov iu relixbcf
upon, this information by persons or entities ktneg than the
intendeb recipient is ptojinyted. If you rgceived thjs in error,
please fontact the wender anq dekete the material from any xomputer. You eeceived this emaip because yuu rgquestrd
timely investment idecs froj www.JustOphin.com
Shohud you not wish go gecehve any future monthly
inveftment nexsletcers thefe ate remode instruchions
at the end of this fmail.

=================================================================

KremiesInvestorNftwork.

is for 47 MMBtu (28 @ Peoples 19 Northern Border Will County). Peoples 47 from 125,000 to 124,953. > > > ---------- > From: Trinidad, Jeanette: > Sent: Thursday, May 03, 2001 2:21 PM > To: Akkerman, Antje; Blackman, Fitzgerald, Richard J.; Holler, > Sonia R.; Slechta, Jerry; Wear, Dave; Thomas, Lilian; Irene Cc: Jeanette: > Subject: May 2nd cuts on NB01, ANR East Joliet > > > > > The are the final reduction totals for May 2, > Intraday 2: > No.Border Enron contract #R0259f was by Volume > from to > Therefore, deliveries Enron North America to > PGLC went from 178,031 to 177,984`. > > ........... > ANR > Joliet Peoples was cut 19dth. > from 40,000 to > > Jeanette Trinidad > Peoples 240-4844 > > > ---------------------------------------------------------------- The information transmitted intended only the person or entity to which is addressed and may contain confidential and/or privileged Any review, retransmission, dissemination or other use of, or taking of any action in reliance information by persons or other than the recipient prohibited. you this in please contact the sender and delete the material from any computer. received this email because you requested timely investment ideas from you wish to receive future monthly investment newsletters are instructions at the end email. PremierInvestorNetwork.

 is for 47 MMBtu (28 @ Peoples TTP and 19 @ NoRthern BordEr
> WilL CoUntY).  PEoplEs cuT the SIQ amount bY 47 GoinG from 125,000 to
> 124,953.
>
> 					Jer
> ----------
> From: 	Trinidad, jeaneTtE: e-maiL
> seNt: 	ThuRsday, MaY 03, 2001 2:21 pM
> tO: 	akkErMaN, AnTjE; blAckmaN, NaTe; FitzgErald, RichaRd J.; hoLler,
> Sonia R.; SlEChTa, Jerry; WeaR, DaVe; Thomas, LiliAn; ISais, IrEnE
> Cc: 	tRinidAd, JEanetTe: E-maiL
> subjecT: 	May 2nd cutS oN nB01, ANR EASt JolieT
>
>
>
>
> 	tHe FollOwing are the final rEDuCTion totals for MAy 2, 2001,
> IntrAdAY 2:
>
> 	NO.bOrdEr	ENron contraCt #r0259f was CUt by 47dth.  vOlUME
> WenT From 51,820 to 51,773.
> 			TherefoRe, deliverieS FroM Enron noRth aMerica To
> PGLc wENt fRom 178,031 to 177,984`.
>
> 	...........
> 	ANR
> 	EasT JolIet	PeopleS contrACt #104684 was cuT By 19dth.  VoLume
> weNt fRom 40,000 To 39,981.
>
>
> JeANeTtE TrInIDad
> pEoPleS eneRgy
> 	(312) 240-4844
>
>
>

----------------------------------------------------------------
The inFoRmAtion TranSMITTed iS inTendEd onlY for the person
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TimelY iNVeSTment ideas from www.JuStoptin.cOm
ShoUld you not wish To receive aNY FUture monThly
INvEStment newslettErs thEre are remoVE instrucTions
At the end Of this emaIL.

=================================================================

premierINveStoRNeTwoRK.

 is for 47 MMBtu (28 @ Peo ples TTP a nd 19  @Nor th ernBord er
> Will Coun t y). Peoples cut the SIQ a mount  b y  47g oi ng fr om 125, 0 00 t o
>  1 24 ,95 3. >> 				J er
> -- --------
>  Fr om : 	Trinidad, Je anette: E- mai l
> Sent: 	T hur sday,Ma y 0 3 , 200 1 2 :21 P M
> To :  	Akke rman, Ant je ;  Black m an, Nat e ;  F itzg erald, Richard J. ;  H o ller,
> SoniaR.; Sl ec h ta , Jer ry;  Wear, Dav e;  Thom a s, Lili a n; I s ais ,  Irene
> Cc:	Trinidad,J ean ette:E- mai l
> Sub ject:  M ay2nd cuts on  NB0 1, ANR Ea st Jol i et
>
>>
>
> 	T he fol low ing  are th efin al red u ct ion tot als forMa y2, 20 01,> I n trad ay2:
>
> 	N o.Border	Enro n c ontr a ct#R025 9f wa s cu tby 47 dth. Volum e> went from 51, 820to 51,773 .
>  		T he refor e , deli ver ies  from E nron No r thAm e r i ca  to
> PGLC went fr om 1 78 ,031 to177,98 4 `.
> > 	..... .. ... .
>A NR
>	Eas t  J oliet	Pe oplesc on tr act #10 46 84 was  c utby19dth .   Vo lume
>  went fr om 40 , 000 to 39,981. >
>
> Jeanett e  T r i ni d ad
>  Pe oples Energ y
>(312 ) 24 0 -4 844 >
>
>

--- -- - -- - ------------------- -- ------ ----- ------------- ---------- T h e inform atio n  t r ansmitted is i ntend ed only fo r  the per son
o r entity  to which i t is add res sed  an d m a y  c ontain confid e n tial
a nd/or p riv ilegedmat eri al.   A ny  review,retransm is si on ,dis semin a tion orot her  u seof, o r  takin g ofanyac ti o n i n relia n ce u pon,  t hi s in for ma tionby p e rso ns or e ntities o the r  tha nth e
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please co n tact th e s ender  and  delete t hemateri alf rom an y comp uter.  Y our e ceive d th isem ail becaus e you  requ es tedtimelyinvestment ideas f r omwww.JustOptin .co m
Sh o u ld  yo u  n o t w is h  to r eceive any futu re monthly
i n ve stment new s let te rs ther e are r emove instruc tions
atthe end o fthis e mai l.

====== ======== ========= = ===== = == ===== === ====== == === ===== ====== = ==
Prem ierInv es torNet work.

 is_for 47_MMBtu (28 @ Peoples_TTP and_19_@ Northern_Border
>_Will County). _Peoples cut the_SIQ amount by 47_going from 125,000_to
>_124,953.
>
> 					Jer
> ----------
> From: 	Trinidad, Jeanette: E-mail
> Sent: 	Thursday, May 03, 2001 2:21 PM
>_To:_	Akkerman, Antje;_Blackman,_Nate;_Fitzgerald, Richard J.; Holler,
> Sonia_R.; Slechta, Jerry; Wear, Dave;_Thomas, Lilian;_Isais, Irene
> Cc: 	Trinidad, Jeanette: E-mail
> Subject: 	May_2nd_cuts on NB01,_ANR East Joliet
>
>
>
>
> 	The following are the final reduction_totals for May 2, 2001,
> Intraday_2:
>
> 	No.Border	Enron contract_#R0259f_was_cut by 47dth. _Volume
> went from 51,820 to 51,773.
>_			Therefore, deliveries from Enron North America_to
> PGLC went from 178,031 to 177,984`.
>
>_	...........
> 	ANR
> 	East Joliet	Peoples contract #104684_was cut by 19dth. _Volume
> went_from 40,000 to 39,981.
>
>
> Jeanette_Trinidad
> Peoples Energy
>_	(312) 240-4844
>
>
>

----------------------------------------------------------------
The_information transmitted is_intended only for the person
or entity_to which it_is addressed and may contain confidential
and/or_privileged_material.  Any_review,_retransmission,
dissemination_or other_use of, or_taking_of any_action_in reliance
upon, this information by persons_or_entities other than the
intended recipient is prohibited._If you received this_in_error,
please contact the sender_and delete the material from_any computer. You received this email_because you_requested
timely investment_ideas from www.JustOptin.com
Should you not wish to receive any future monthly
investment_newsletters there are remove instructions
at the_end of this email.

=================================================================

PremierInvestorNetwork.


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(713) 853-1411   Enron Resolution Center

Specific Help:
Information Risk Management			(713) 853-5536
SAP/ISC                                                                               (713) 345-4727
Unify On-Call 					(713) 284-3757  [Pager]
Sitara On-Call					(713) 288-0101  [Pager]
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EES Help Desk					(713)853-9797 OR (888)853-9797
TDS -Trader Decision Support On-Call                    (713) 327-6032 [Pager] Mark:  Here's the only stuff I have on the mattter I mentioned to you
Tuesday.  The meeting is currently set for 8/29 in Houston.
Dan:  Please copy Mark on all future corro on this -- he's our resident CFTC
expert, among other things.   I'll talk to Kevin and see what else he might
be thinking about on it.  WE both agree that Napa Valley would get more
interest as a meeting place.
Regards,
Janice

EB3861
Assistant General Counsel, Enron North America Corp.
713-853-1794 (Fax:  713-646-4842)
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 08/14/2000
02:48 PM ---------------------------
From: Christi L Nicolay on 08/14/2000 11:09 AM
To: Daniel Allegretti/HOU/EES@EES
cc: Sheila Tweed/HOU/ECT@ECT
Subject: Re: Confidentiality Agreement

Elizabeth Sager (I think Elizabeth is out this

TELEPHONY: No Scheduled Outages

 TERMINAL SERVER:   No Scheduled Outages.

 UNIFY:   No Scheduled Outages.

 ----------------------------------------------------------------------------------------------------------------------------
								 FOR ASSISTANCE

 (713) 853 - 1411    Enron Resolution Center

 Specific Help:
 Information Risk Management 			 (713) 853 - 5536
 SAP / ISC                                                                                (713) 345 - 4727
 unite On - margin call 					 (713) 284 - 3757   [ Pager ]
 Sitara On - Call 					 (713) 288 - 0101   [ Pager ]
 RUS / GOPS / GeoTools / APRS 			 (713) 639 - 9726   [ Pager ]
 OSS / UA4 / TARP 				 (713) 285 - 3165   [ Pager ]
 CPR 						 (713) 284 - 4175   [ Pager ]
 EDI Support 					 (713) 327 - 3893   [ Pager ]
 EES Help Desk 					 (713)853 - 9797 OR (888)853 - 9797
 TDS -Trader Decision Support On - Call                     (713) 327 - 6032 [ Pager ] Mark:   Here's the alone stuff I have on the mattter I mention to you
 Tuesday.   The meeting is currently sic for 8/29 in Houston.
 Dan:   Please copy Mark on all future corro on this -- he's our resident CFTC
 expert, among early things.    I'll talk to Kevin and see what else he might
 be thinking about on it.   WE both match that Napa Valley would get more
 interest as a meeting place.
 Regards,
 Janice

 EB3861
 Assistant General Counsel, Enron North America Corp.
 713 - 853 - 1794 (facsimile:   713 - 646 - 4842)
 ---------------------- Forwarded by Christi L Nicolay / HOU / ECT on 08/14/2000
 02:48 PM ---------------------------
 From: Christi L Nicolay on 08/14/2000 11:09 AM
 To: Daniel Allegretti / HOU / EES@EES
 cc: Sheila Tweed / HOU / ECT@ECT
 topic: Re: Confidentiality Agreement

 Elizabeth Sager (I think Elizabeth is out this

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(713) 853-1411   Enron Resolugion Centvr

Specifix Heop:
Information Risk Managejcnt			(713) 853-5536
SCP/MSC                                                                               (713) 345-4727
Unofj On-Call 					(713) 284-3757  [Pader]
Sptwra Kn-Call					(713) 288-0101  [Pager]
RUS/GOPS/GeoTools/APRS			(713) 639-9726  [Pager]
MSS/UA4/TARP				(713) 285-3165  [Psger]
CPR						(713) 284-4175  [Pager]
EDI Support 					(713) 327-3893  [Oager]
EES Help Desk					(713)853-9797 OR (888)853-9797
TDS -Traeer Qwcision Suppurt On-Call                    (713) 327-6032 [Pager] Mark:  Here's the only stuff I hqvw oj the matttec I megtioned to you
Tuesddy.  The meeting is cuvrentny wet for 8/29 in Houston.
Dai:  Please copy Mark jn all fuduxe corro on this -- he's oyr revidett CWRC
dxptrt, ajong ohhec things.   J'll talk to Kevin and see what ejwe he might
bs thinhigg about on it.  WE both agree that Napa Vamley would get more
intwrest as a meeting plwce.
Regardf,
Janice

EB3861
Assistant General Counsel, Enron North Amarica Zork.
713-853-1794 (Nwb:  713-646-4842)
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 08/14/2000
02:48 PM ---------------------------
Rrpm: Christi L Nicjlay on 08/14/2000 11:09 AK
Tl: Cwniel Allegrejti/HOU/EZA@ESS
cc: Sheila Tweed/HLU/ECT@ECJ
Subjwct: Re: Cogfidrntiality Agreement

Elizabwth Sager (I nhinj Elizabeth is out this

TELEPHONY: No Scheduled Outages TERMINAL SERVER: No UNIFY: Scheduled Outages. FOR ASSISTANCE (713) Help: Risk Management (713) SAP/ISC (713) 345-4727 On-Call (713) 284-3757 [Pager] Sitara On-Call 288-0101 [Pager] RUS/GOPS/GeoTools/APRS (713) 639-9726 [Pager] OSS/UA4/TARP (713) 285-3165 [Pager] CPR (713) 284-4175 EDI Support (713) 327-3893 [Pager] EES Help Desk (713)853-9797 OR (888)853-9797 TDS -Trader Support (713) [Pager] Here's the only stuff I have on the mattter I mentioned to you Tuesday. The meeting currently set for 8/29 in Houston. Dan: Please Mark on all future on this -- he's our CFTC among other I'll to and see what he might be thinking about on it. WE both agree that Napa Valley would get more interest a meeting Janice EB3861 General Enron America Corp. 713-853-1794 ---------------------- Forwarded by Christi L Nicolay/HOU/ECT PM --------------------------- From: Christi L Nicolay on 08/14/2000 AM To: Allegretti/HOU/EES@EES cc: Sheila Tweed/HOU/ECT@ECT Subject: Re: Agreement Elizabeth Sager (I think Elizabeth is out

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(713) 853-1411   EnRon ReSoLUtioN ceNter

SPecific hElP:
iNfoRmAtIon riSK MAnageMenT			(713) 853-5536
SAP/ISC                                                                               (713) 345-4727
unify On-CalL 					(713) 284-3757  [PaGeR]
Sitara On-CalL					(713) 288-0101  [paGer]
RUS/GOPS/geotools/APRS			(713) 639-9726  [PagEr]
OsS/UA4/TArP				(713) 285-3165  [pagER]
CPR						(713) 284-4175  [PAgeR]
EDI SUpport 					(713) 327-3893  [pAger]
EEs Help Desk					(713)853-9797 oR (888)853-9797
tdS -TradER DecisiON suPporT On-Call                    (713) 327-6032 [Pager] Mark:  HERe'S The only stuff I hAve on tHe MAtTTEr I MenTioned to yoU
TUesdaY.  the meetINg IS CUrrENtly set for 8/29 in HOuston.
Dan:  PlEAse Copy MaRk On aLL futurE corrO oN ThiS -- he's our resiDent cFTC
experT, among OTher thiNGs.   I'll taLk to KeVin And See wHAt ElSe hE mIGht
BE tHinKIng About on iT.  We bOth agRee tHAT nApa VAllEy woUld geT more
interest As a MeetINg pLace.
REgardS,
JanIcE

EB3861
AsSistanT GeneRaL Counsel, Enron NoRth AMerica CorP.
713-853-1794 (FaX:  713-646-4842)
---------------------- FOrwArDed by cHristi l NiColAy/HOU/ECt on 08/14/2000
02:48 PM ---------------------------
FrOM: ChRiSTI l NIcolay on 08/14/2000 11:09 AM
To: Daniel alLEGrEtti/HOU/EeS@EES
cC: shEiLA Tweed/HOu/EcT@EcT
SuBJEct: Re: confIDeNtiality agreemENt

elIzabeth saGer (I thInK ElIzaBeth iS Out tHis

TELEPHONY: No Scheduled O utages

TE RMINA L S ERV ER :  N o Sc heduled Outage s .

U NIFY:  No Scheduled Ou tages .---- - -- ----- ------- - -- - - --- -- -- --- -- - -- ----- --- ------- ---------- --- -- ------------ - -- ---------- --- ------------ --- ------ -- --- -
						FORASSIST A NCE

( 713) 853- 14 1 1   En r on Reso l u ti on C enter

SpecificH el p :
InformationRisk M an a ge m e nt		( 713) 853-5 53 6
SAP / ISC                                                          (71 3) 3 45-4727
U nify O n -Call 			(713 ) 284- 375 7 [Pag e r]
S ita ra On- C al l			( 713) 288 -0 10 1  [P ager ] R U S/GO PS/ GeoT ools/ APRS			(713)639 -972 6   [ Pager ]
OSS /UA4 /T ARP			(713 ) 285 -3 165  [Pager]
CP R					(713)284 -4 175  [Page r ]
EDISup por t 				(713) 3 2 7-3 89 3 [P ager]
EES Help Des k	(713)853 -9797O R(8 8 8)853-97 97
TD S -T r a der D ecis i on  Support  On-Ca l l              (71 3)327-6 0 32 [ Pager]  Mark: Here' s  the only stuf f  I have on th e  m a t tt e r Imen tioned to y ou T uesd ay.Th e m e eting  is c ur r en t ly set for 8/29 inHo uston.
Dan:   Please copy  Mark on a l l future c orro on this -- he's o ur re sident CFT C
expert , amo ng other  things.I'll tal k t o K evi n a n d  s ee what elseh e  mig ht
be th ink ing abo utonit.   W Eboth agre e that N ap aVa ll eywould get more  int er est  as a meetin g pla ce.Re ga r ds,
Janice
E B 3 861As si stan t G en eralCoun s el,  EnronNorth Ame ric a  Cor p.
7 13-853- 1794 (Fax:  7 13 -646-4842)
- --- ------ - - -------- -- Forwarded by Christi L Nicol ay/ HOU/E CT o n 08/14/2 000
02:4 8 P M  ----- ------ ----- -- --- - - ----F r om : C hr isti L Nic o l ayon 08 /1 4/20 00 11:0 9 AM
To: Daniel Al l egr etti/HOU/EES@ EES
cc: S he ila Tw e ed/ HO U /EC T @ ECT
Subject: R e: Confide nt i al ity Agreem e nt
Elizab eth Sag er (I think E lizabethis out th is

TELEPHONY: No_Scheduled Outages

TERMINAL_SERVER:  No Scheduled_Outages.

UNIFY: _No_Scheduled Outages.

----------------------------------------------------------------------------------------------------------------------------
								FOR_ASSISTANCE

(713)_853-1411  _Enron Resolution Center

Specific_Help:
Information Risk Management			(713) 853-5536
SAP/ISC_  __             __ ___    _    _ _       __  _        _     _  ___   _     _ (713) 345-4727
Unify On-Call 					(713) 284-3757_ [Pager]
Sitara On-Call					(713) 288-0101  [Pager]
RUS/GOPS/GeoTools/APRS			(713) 639-9726_ [Pager]
OSS/UA4/TARP				(713) 285-3165  [Pager]
CPR						(713) 284-4175_ [Pager]
EDI Support 					(713) 327-3893_ [Pager]
EES_Help Desk					(713)853-9797 OR (888)853-9797
TDS -Trader_Decision Support On-Call_ _  _     _  _     (713)_327-6032_[Pager] Mark: _Here's_the_only stuff_I have on_the_mattter I_mentioned_to you
Tuesday.  The meeting_is_currently set for 8/29 in Houston.
Dan: _Please copy Mark on_all_future corro on this_-- he's our resident CFTC_
expert, among other things.  _I'll talk_to Kevin_and see what else he might
be thinking about on it._ WE both agree that Napa_Valley would get more_
interest as_a_meeting place.
Regards,
Janice

EB3861
Assistant General_Counsel,_Enron North_America Corp.
713-853-1794 (Fax:  713-646-4842)
---------------------- Forwarded by_Christi L_Nicolay/HOU/ECT on 08/14/2000
02:48 PM ---------------------------
From:_Christi L Nicolay on_08/14/2000_11:09 AM
To: Daniel Allegretti/HOU/EES@EES
cc: Sheila Tweed/HOU/ECT@ECT_
Subject: Re: Confidentiality Agreement

Elizabeth_Sager (I think Elizabeth is_out_this


EPMI_0806DS";
ENGY_TYPE "CSPN";
EXT_CNTRL_ID "LDWP";
SCHED_ID "";
CONTRACT_TYPE "";
CNGS_MGT_FLG "SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF";
PRIOR_TYPE "OTHER";
LOSS_CMP_FLG "NO";
WSCC_TAG "";
HRLY_MW -10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10;
RAMP_RATE   1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1;
CAP_RES_PRC   0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0;
 \BEGIN ADJ_BID
24*{(  0, 91.86),( 10, 91.86)};
\END
\END TEMPLATE
\END TRANSACTION Yesterday I spent about 45 minutes with the three key energy staff to the House Energy and Commerce Committee -- Andy Black (for Barton) and Sean Cunningham and Jason Bentley (the energy counsels to the full committee).  We met at my request to discuss Barton RTO draft.  (The group EPSA meeting with Chairman Barton that was to have been yesterday afternoon has been rescheduled for next Tuesday.)

Key points from the meeting --

1.  They do not expect the Barton Subcommittee to mark up the electricity legislation

EPMI_0806DS ";
 ENGY_TYPE " CSPN ";
 EXT_CNTRL_ID " LDWP ";
 SCHED_ID " ";
 CONTRACT_TYPE " ";
 CNGS_MGT_FLG " SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF ";
 PRIOR_TYPE " OTHER ";
 LOSS_CMP_FLG " NO ";
 WSCC_TAG " ";
 HRLY_MW -10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10;
 RAMP_RATE    1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1,   1;
 CAP_RES_PRC    0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0,   0;
  \BEGIN ADJ_BID
 24 * { (  0, 91.86), (10, 91.86) };
 \END
 \END TEMPLATE
 \END TRANSACTION Yesterday I spent about 45 minutes with the three cardinal department of energy staff to the House Energy and Commerce Committee -- Andy Black (for Barton) and Sean Cunningham and Jason Bentley (the department of energy counsels to the full committee).   We met at my request to hash out Barton RTO draft.   (The group EPSA meeting with Chairman Barton that was to have been yesterday good afternoon has been rescheduled for next Tuesday .)

 Key point from the meeting --

 1.   They do not expect the Barton Subcommittee to grade up the electricity legislation

EPML_0806DS";
ENGY_TYPE "CSPN";
EXT_CNTRL_LD "LDWP";
SCHED_ID "";
CONTRACT_VYPE "";
CNFS_MGT_FLG "SELF","SELF","SELF","SELF","SELF","SELF","SELH","SELD","SELF","WELF","SELF","SELF","SELF","SELF","SEUF","SELF","SELV","SELF","SELD","SELH","SELF","SELF","SELF","SELH";
LRIOR_TYIZ "OTHSV";
LOSS_EM'_FLG "NO";
WSCC_TAG "";
MRLY_MW -10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10;
RAMP_SATE   1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1;
SAP_RES_PTC   0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0;
 \BEGIN ASJ_BID
24*{(  0, 91.86),( 10, 91.86)};
\END
\END TEMLLATE
\END TRANSACTION Yestegday I spent about 45 mijutes with jge eyree key enefgy staff uo the House Energy and Commerce Committee -- Andy Black (for Bqrtlt) and Sean Runnindham and Jason Bentlay (the rnergy counselx tm tye full committee).  We met at my request to discuvs Barton RTO draft.  (Rhe gtoup APSA neeginf xitg Chaigmai Barton thzt was to hqve been yesterday sfevtnoon has besn resshqduled for next Tuesday.)

Key points from ths meeting --

1.  They do nor expect the Barton Sobcommitteq to mark up the electricity legislation

EPMI_0806DS"; ENGY_TYPE "CSPN"; EXT_CNTRL_ID "LDWP"; SCHED_ID ""; CNGS_MGT_FLG PRIOR_TYPE "OTHER"; "NO"; WSCC_TAG ""; 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1; CAP_RES_PRC 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, \BEGIN 24*{( 91.86),( 10, 91.86)}; \END \END TEMPLATE \END TRANSACTION Yesterday I spent about 45 minutes with the key energy staff to the House Energy and Committee -- Andy Black Barton) and Sean Cunningham and Bentley energy counsels the committee). met at my to discuss Barton RTO draft. (The group EPSA meeting with Chairman Barton that was to have been afternoon has for next Key from meeting -- 1. not expect the Barton Subcommittee to electricity legislation

EPMI_0806DS";
ENGY_TYPE "CSPN";
EXT_CNTRl_ID "LDWP";
SCHeD_ID "";
CoNTrACt_TyPE "";
CnGS_MgT_FLG "SELF","SELF","SelF","SElF","SELF","SELF","SELF","SELF","SELF","sELF","SeLf","sELF","seLf","SELF","sELF","SELf","sElf","sELf","SeLf","SElF","seLf","SELF","sELf","SELF";
PRiOR_TYPE "OTHeR";
LoSs_CMP_FLG "NO";
WSCc_tAg "";
HRLY_MW -10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10;
RAMp_RAtE   1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1,  1;
CAP_RES_PRC   0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0,  0;
 \BeGIn ADJ_BId
24*{(  0, 91.86),( 10, 91.86)};
\EnD
\End TEMPlATe
\END TrANSACtiON YesTerday I spEnT About 45 mINutes wiTH ThE thrEe key energy staff tO ThE house Energy and commerCe cOmMITteE -- AnDy Black (for baRton) aND Sean CuNNiNGHAm aND Jason Bentley (The energy coUNseLs to thE fUll COmmittEe).  We mEt AT my Request to diScusS Barton RTo draft.  (tHe group epSA meetIng witH ChAirMan BARtOn ThaT wAS to HAvE beEN yeSterday aFtErNoon hAs beEN REScheDulEd foR next tuesday.)

Key poiNts From THe mEetinG --

1.  They Do noT eXpect The BarTon SuBcOmmittee to mark uP the ElectriciTy lEgIslAtIon

EPMI_0806DS";
ENGY_TYPE "C SPN";
EXT_ CNTRL _ID  "L DW P";SCHE D_ID "";
CONTR A CT_T YPE "";
CNGS_MGT_FLG " SELF" ," S ELF" , "S ELF", "SELF", " SE L F "," SE LF "," SE L F" ,"SEL F", "SELF", "SELF","SE LF" ," SELF","SELF" , "S ELF","SELF "," SELF","SELF" ,"S ELF"," SE LF" , "SELF "," SELF" ,"SELF " ,"SELF ","SELF";
P R IOR_TY P E "OTHE R " ;LOSS _CMP_FLG "NO";
WS C C_ T AG "";
HRLY_MW  -10,- 10 , -1 0 , -10 ,-1 0,-10,-10, -1 0,-10 , -10,-10 , -1 0 , - 10, - 10,-10,-10,-1 0,-10,-10,- 1 0,- 10,-10 ,- 10, - 10;
RA MP_RA TE   1 ,  1,  1, 1, 1,  1,  1 ,  1,1,  1,1,  1, 1,  1 , 1, 1,1,  1, 1 ,   1 ,  1,1, 1,  1;CA P_ RES_P RC 0 ,  0, 0,   0,   0, 0,  0,  0, 0, 0,0, 0, 0,  0 ,  0 , 0, 0,  0,   0, 0 ,  0,  0,  0, 0;
\BEGIN AD J_B ID
24 *{ (  0, 91.86) ,(10,  91.86) };
\END \EN DT E M PL ATE
\END TRANSACTI ON Y es terday I  spent ab ou t  45 minu te s w itht h e thr ee k e yenergy s taff t o  t he  HouseEn ergy a nd  Co mme rce C o mmit tee --  Andy Bl ack ( f or Barton) and Sean Cunningh a ma n dJ ason  Be ntley (theener g y co unse l stot he fu ll co mm i tt e e).  We met at my r eq uest t o dis cuss Barton R TO draft.( T he group  EPS A  m e eting with Cha irman  Barton th a t was to  have  been ye sterday a f t ernoon h asbee n r esc h e du led for nextT u esda y. )

Key  po ints fr omthe  me eti ng  --

1. They do  n ot  e xp ect  theB arton Su bc omm it tee  to m a rk upthe e lect ri ci t y l egislat i on

EPMI_0806DS";
ENGY_TYPE "CSPN";
EXT_CNTRL_ID_"LDWP";
SCHED_ID "";
CONTRACT_TYPE_"";
CNGS_MGT_FLG "SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF","SELF";
PRIOR_TYPE "OTHER";
LOSS_CMP_FLG "NO";
WSCC_TAG_"";
HRLY_MW -10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10,-10;
RAMP_RATE__ 1,__1,  1,_ 1, _1,  1, _1,  1,__1,  1,  1,  1,  1,  1,  1, _1,_ 1,__1,_ 1,  1, _1,  1,  1,_ 1;
CAP_RES_PRC_  0,  0,  0, _0,_ 0, _0,  0,  0,  0,  0,_ 0,  0,  0,_ 0, _0,__0,  0, _0,  0,  0, _0,  0,  0, _0;
 \BEGIN ADJ_BID
24*{(  0, 91.86),( 10,_91.86)};
\END
\END TEMPLATE
\END TRANSACTION Yesterday I spent_about 45 minutes with the_three key_energy staff to the House_Energy and Commerce_Committee --_Andy Black (for_Barton) and Sean Cunningham and Jason_Bentley (the energy_counsels to the full committee). _We_met at my_request_to_discuss Barton_RTO draft. _(The_group EPSA_meeting_with Chairman Barton that was to_have_been yesterday afternoon has been rescheduled for_next Tuesday.)

Key points_from_the meeting --

1._ They do not expect_the Barton Subcommittee to mark up_the electricity_legislation


  <<break out agreement--CIS02 (12/20/00).DOC>> Susan:
We have finally had a chance to internally discuss the comments that you sent
to Marie Heard on March 21 by e-mail and here is our response:

ISDA Comments

1. Item #1 is fine

2. We will agree to $100,000,00 for both parties

3. It is Enron's Policy to use Loss instead of Market Quotation, which I
believe is the standard that is currently used in the existing Master.  As a
compromise, we can agree to Market Quotation for Transactions with a term of
2 years or less as of the applicable termination date and Loss for all others.

4. Item #4 is fine.

5. Our credit people want to keep MAC where it is as a trigger that reduces
the collateral threshold to zero.

6. I would like to discuss with you what we are doing with the existing
Guarantys.

7. Item #7 is okay but we would prefer a separate termination agreement.

8. I need to discuss with you items #8 and 10

CSA COMMENTS

1. Item #1 is fine

2. We cannot agree to item #2 and would like for it to remain at 20

3. I would like to discuss item #3 with you

Also, some of the changes that were made were not marked (i.e., no fault
termination was not in our draft, but in yours).  Could you please e-mail me
your latest versions so that I can make sure that I have seen all of the
changes?  With respect to no-fault termination, we cannot as a policy matter
agree to that.  I look forward to hearing from you.

Carol (713-853-3989) Sounds great.  We will have to meet up somewhere.  We are staying at the
NY,NY under my name.

I feel the same.  I really enjoy seeing you, but as usual, the visits are too
short.  We will just have to make more frequent trips to Denver.

I will write more later, trying to get caught up from a week off.

Jackson did get the gift for Christmas from you, the thank you

< < break out agreement -- CIS02 (12/20/00).DOC > > Susan:
 We have finally had a chance to internally discourse the gossip that you sent
 to Marie Heard on March 21 by e - mail and here is our answer:

 ISDA Comments

 1. Item # 1 is fine

 2. We will harmonize to $ 100,000,00 for both party

 3. It is Enron's Policy to use Loss alternatively of Market Quotation, which I
 believe is the standard that is presently used in the existing Master.   As a
 compromise, we can agree to Market Quotation for Transactions with a term of
 2 class or less as of the applicable termination date and Loss for all others.

 4. Item # 4 is fine.

 5. Our credit people desire to keep MAC where it is as a trigger that reduces
 the collateral doorsill to zero.

 6. I would like to discuss with you what we are do with the existing
 Guarantys.

 7. detail # 7 is okay but we would prefer a separate termination agreement.

 8. I need to discourse with you items # 8 and 10

 CSA COMMENTS

 1. Item # 1 is fine

 2. We cannot agree to item # 2 and would like for it to remain at 20

 3. I would like to discuss item # 3 with you

 Also, some of the changes that were made were not marked (i.e., no fault
 termination was not in our draft, but in yours).   Could you please vitamin e - mail me
 your latest versions so that I can name certain that I have seen all of the
 changes?   With respect to no - fault termination, we cannot as a policy matter
 agree to that.   I count forward to hearing from you.

 Carol (713 - 853 - 3989) Sounds great.   We will get to meet up somewhere.   We are staying at the
 NY, NY under my name.

 I feel the same.   I really love seeing you, but as usual, the visits are too
 short.   We will barely have to make more frequent trips to Denver.

 I will spell more later, trying to get caught up from a week away.

 Jackson did get the gift for Christmas from you, the thank you

  <<bgeak out agreement--CIS02 (12/20/00).DOG>> Susan:
We have fnbally iad a cgance to internally discuss the commxnts that you sent
to Marie Heafd on Marbh 21 by e-mqil end here is our cssponse:

LFDA Dlmmeutw

1. Item #1 is fing

2. We will agsee to $100,000,00 for bodh pcrties

3. It is Enron's Policy to use Lofs instraf of Market Qujtatpog, whjbh I
believe is the standard thzt is clrrently used in yhe existing Master.  As a
fompgomise, we can agref to Market Quoeqtion for Trxnsactions with a term of
2 years or less as of the apolicayle terminajnin fdte and Losw for all others.

4. Lnem #4 is fine.

5. Oir credit peopke xant to keep MAC where it is as a trigger trat reducas
the collateral tyrwsholg to zeru.

6. I doumd ljke to diacuss with you what ww are doing with tht evpxting
Guaranfys.

7. Itqm #7 is okay but we would prefer a separatt terjination agreement.

8. I newd to discuss with yoo items #8 agd 10

CSA COMMENTS

1. Item #1 is fine

2. We cannot agree do itxm #2 aue wouue pike for it to remain at 20

3. I would like to disshsx ptem #3 with you

Alsj, some of tne cnwnges that wete made wede not marked (i.e., nl fault
termunation wws npt in our draft, but in yourw).  Could you please e-mail me
yobr latest vexsions so tnat I can make sure thac I habe seen all of the
cgxnges?  With respdct tm no-faulu termination, we cwnnot as e polncy mattdr
abree tj that.  I pook nmrward to hearing vrom iou.

Carml (713-853-3989) Sounds great.  We will have to meet up somewhere.  We ase vtaying ct the
NY,NY under mr name.

I feel the saie.  I really ennoy seemng you, but ws usual, the elsits are tom
short.  We qill just hxxe to make morr frequenn urips to Dwnver.

I will write korg mater, trying to geu xaught up from a deeh lfh.

Jackfmn did get tve gkft gor Cfristmas frio yoi, the thank you

<<break out agreement--CIS02 (12/20/00).DOC>> Susan: We have a to internally the comments that on 21 by e-mail here is our ISDA Comments 1. Item #1 is 2. We will agree to $100,000,00 for both parties 3. It is Enron's to use Loss instead of Market Quotation, which I believe is the standard is used the Master. As a compromise, we can agree to Market Quotation for Transactions with a term of years or less as of the applicable termination and Loss for all 4. Item #4 is fine. Our people want keep where is as a that reduces the collateral threshold to zero. 6. I would like to discuss with you what we doing with Guarantys. 7. #7 okay we would prefer termination agreement. 8. I need to items #8 and 10 CSA COMMENTS 1. Item is fine We cannot agree to item #2 would like for it to remain at 20 I would like to discuss item #3 with you Also, some of the changes that were not marked (i.e., fault termination was in draft, in Could you e-mail me your latest versions so that I can make sure I have seen all of the changes? With respect to we as a policy agree to that. I forward hearing from you. Carol great. will up We staying at the NY,NY my name. I feel the I really enjoy seeing visits are too short. We will just have make more frequent trips to Denver. I write more later, trying to get caught up from a week off. did get for Christmas from you, the thank you

  <<break out agreement--CIS02 (12/20/00).DOC>> SuSan:
We have fInallY haD a cHaNce tO intErnally discuss THe coMments that you sent
to MarIe HeaRd ON MarCH 21 bY e-maiL and herE Is OUR reSpOnSe:

IsDa coMmentS

1. ItEm #1 is finE

2. We will agrEe tO $100,000,00 fOr both partieS

3. it Is Enron's PoLicY to use Loss inSteAd of MaRkEt QUOtatiOn, wHich I
BelievE Is the sTandard thAt IS curreNTly used IN ThE exiSting Master.  As a
comPRoMIse, we can agree tO MarkeT QUOtATIon For transactioNs With a TErm of
2 yeARs OR LEss AS of the applicaBle terminatIOn dAte and loSs fOR all otHers.

4. ITeM #4 Is fIne.

5. Our crediT peoPle want to Keep MAc Where it IS as a triGger thAt rEduCes
tHE cOlLatErAL thREsHolD To zEro.

6. I woulD lIkE to diScusS WITH you WhaT we aRe doiNg with the exisTinG
GuaRAntYs.

7. IteM #7 is okAy buT wE woulD prefeR a sepArAte termination aGreeMent.

8. I need To dIsCusS wIth yoU Items #8 aNd 10

CsA CoMMENTS

1. item #1 is fINe

2. WE cANNOt Agree to item #2 and woulD lIKE fOr it to reMain at 20

3. i WoUlD Like to diScUss Item #3 WITh you

also, SOmE of the chAnges tHAt WeRe made wErE not maRkEd (i.E., no Fault
TErmiNation Was not in Our drAFt, but in yours).  CoULd you please e-mAIl ME
YoUR latEst Versions so tHat I CAn maKe suRE tHat i Have sEen alL oF ThE
Changes?  With respect tO nO-fault TermiNation, we cannoT as a policy MATTer
agree To thAT.  I LOok forward to heAring From you.

CarOL (713-853-3989) Sounds gReat.  WE will havE to meet up SOMewhere.  WE arE stAyiNg aT THe
nY,NY under my naME.

i feeL tHe same.  I ReaLly enjoY seEinG yoU, buT aS usual, the Visits arE tOo
ShOrT.  We Will jUSt have to MaKe mOrE frEquenT Trips tO DenvEr.

I wIlL wRIte More latER, tRYIng tO gEt CaugHt uP fRom a wEek oFF.

JaCkson diD get the giFt fOR ChrIsTmAs from yOu, the thank you

  <<break out agreement--C IS02 (12/2 0/00) .DO C>>  S usan :
We  have finallyh ad a  chance to internallydiscu ss thec om ments  that y o us e nt
t oMar ie He ard o n M arch 21  by e-mail  an dhere is ourr es ponse:

IS DAComments

1.  It em #1is  fi n e

2.  We  will  agree to $10 0,000,00fo r  bothp arties3 .It i s Enron's Policyt ou se Loss instea d of M ar k et Q uot ati on, whichI
beli e ve is t h es t a nda r d that is cur rently used inthe ex is tin g  Maste r.  A sa
c ompromise,we c an agreeto Mar k et Quot a tion fo r Tran sac tio ns w i th  a  te rm of2yea r s o r less a sof  theappl i c a b le t erm inat ion d ate and Lossfor  all oth ers.
4. I tem#4  is f ine.
5. Ou rcredit people w antto keep M ACwh ere  i t isa s a tr igg erthat re duces t heco l l a te ral threshold to z er o .
6. I wou ld lik e  t od iscuss w it h y ou w h a t weared oi ng withthe ex i st in g
Guar an tys.
7.  It em#7 is okay  but w e wouldprefe r  a separate te r mination agre e me n t .8. I  ne ed to discu ss w i th y ou i t em s # 8  and10
C SA COMMENTS

1. Item # 1is fin e

2.  We cannot ag ree to ite m # 2 and wo uldl ik e  for it to rem ain a t 20

3. I would li ke to  discuss  item #3w i th you
Als o,som e o f th e changes tha t were  m ade wer e n ot mark ed(i. e.,  no  f ault
ter mination  w as  n ot  in  ourd raft, bu tinyo urs ).  C o uld yo u ple asee- ma i l m e
your la t e st v er si onssoth at Icanm ake  sure t hat I hav e s e en a ll  o f the changes?  Wit hrespect to  n o-f ault t e r mination , we cannot as a policy matter
ag ree t o th at.  I lo okforwar d t o  heari ng fro m you .
Ca r o l (71 3 - 85 3-3 98 9) Soundsg r eat .  We  w illhave to  meet up somewhere .   W e are staying  at  the NY ,NY un d ermy nam e .

I feel thesame.  I r ea l ly  enjoy see i ngyo u, butas usua l, th e  visits  are too
short. We  wil l jus t have tomake mor e frequen t  trip s  t o Den ver .

I w il l w ritemore l a ter , try ing to  g et cau ght u pfrom a w eek off.

Jackson did g et the  gift  fo r Christm asf rom  you, the  tha nk you

 _<<break out_agreement--CIS02 (12/20/00).DOC>> Susan:
We have_finally had_a_chance to_internally_discuss the comments_that you sent_
to Marie Heard on_March 21 by_e-mail_and here is our response:

ISDA Comments

1. Item #1 is fine

2. We will agree to_$100,000,00_for both_parties

3._It_is Enron's Policy to use_Loss instead of Market Quotation,_which I_
believe is the standard that is currently used_in_the existing Master._ As a
compromise, we can agree to Market_Quotation for Transactions with a term_of
2 years_or_less_as of the applicable_termination date and Loss for all_others.

4. Item #4 is fine.

5. Our_credit people want to keep MAC where_it is as a trigger that_reduces
the collateral threshold to_zero.

6. I_would like to discuss with_you what we_are doing_with the existing_
Guarantys.

7. Item #7 is okay but_we would prefer_a separate termination agreement.

8. I need_to_discuss with you_items_#8_and 10_

CSA_COMMENTS

1._Item #1_is_fine

2. We cannot agree to item_#2_and would like for it to remain_at 20

3. I would_like_to discuss item #3_with you

Also, some of the_changes that were made were not_marked (i.e.,_no fault_
termination was not in our draft, but in yours).  Could_you please e-mail me
your latest_versions so that I_can make_sure_that I have_seen_all of_the
changes?  With respect to no-fault_termination, we_cannot as a policy matter
agree_to that.  I_look_forward to hearing from you.

Carol (713-853-3989)_Sounds great.  We will have_to meet up somewhere. _We_are_staying at the
NY,NY under_my name.

I feel the_same.  I_really enjoy seeing you, but as usual,_the_visits are too
short.  We_will_just have to make more frequent_trips_to_Denver.

I will write more later,_trying to get caught up from_a week off.

Jackson did get the gift for Christmas_from you, the_thank you