This is the content of an email: Lisa and Liz; I am very concerned about the way that credit is handling and coordinating = with us on margin issues. For over a week we have been waiting for them to= compile and send to us information on LC's that are due to expire at the e= nd of December. We finally received a very cryptic spreadsheet this aftern= oon which requires alot of follow up in order for us to determine what our = rights are. I get the sense that credit assumes that since we are in bankr= uptcy we will never have the right to draw on LC's that we are holding when= in fact we know that this is not necessarily true. For example, this afte= rnoon I found out that we are holding an $8 million LC for trades done with= Enserco under an ISDA. The drawing condition is a failure to pay. Under = the ISDA, they were required to renew this LC within 20 Business days of th= e expiry date which is 12/31. If they don't renew I'm hoping that we can d= eclare an Event of Default, terminate, request payment of a termination pay= ment and if they don't pay draw. I'm not sure that by following all of the= cure periods in the ISDA we can be in a position to draw on the 31st. Tha= t's just one example. Do you have any thoughts on this?

Subject: Credit issues

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

Subject: NGI Article on TW Ruling

This is the content of an email: Hey All. Please welcome Dave Kistler and Jason Springer to our office. Dave transferred here from Houston and is a director with Enron Global Markets Weather Trading. He is going to be sitting across from Aandy Ly & his extension is 7806. Jason is the new clerk sent here to help me, so I can help all of you. He is sitting in the cube next to me at extension 7818. Please be kind to him, I'd like to keep this one around. (In case you haven't noticed, Octavio & I have accidentally scared off 2 temps. within the last 3 weeks.) Cheers,

Subject: New Faces

This is the content of an email: Attached is a copy of our California Separation Agreement and Release. This is a merge document it may prompt you to open up this data source. California Agreement
Subject: California Waiver