Subject: "Employee Incentive Scheme".

Body: Michelle, As a follow on to our previous correspondence on this matter, Enron Metals and Commodity Ltd. (EMCL) has entered into an Incentive Scheme with employees working on EMCL business. I know that an issue has been raised about payment of incentives to employees on the North American payroll, but we have not received further clarification on the matter, so I would like to send you the "Document" which lists out who is included (by location and payroll) and what the definition of the Scheme is. To do this, I need your Fax Number. I am in the office today, but do not plan on being here tomorrow, so if you could send it to me this AM. Thanks,

Subject: "Dow Jones Index - West Desk".

Body: Portland West Desk lawyers have completed the application to become a participant in the Dow Jones survey at NP-15 and SP-15 delivery points. As soon as possible, we would like to begin executing deals against these indices. In order to do this, we will need to access to them through EnPower, in both Deal Blotter and Deal Entry. If you could facilitate the addition of these two indices into EnPower, we would appreciate having access to them by Tuesday. Please let me know what steps we need to take at the West Desk to help complete this process. To the best of my knowledge, we simply need the ability to choose the Dow Jones NP-15 or SP-15 index in the PubCode list in Deal Blotter and Deal Entry. We also need to be assured that when these deals are settled, the correct data will be pulled into EnPower from Dow Jones. Thank you for your help and cooperation. I will be in touch on Monday.

Subject: "EEX mtr 5999".

Body: I received a call from Jill Zively about our supply at mtr 5999. Late Friday night (6/9), a portion of this gas will be delivered into Midcon instead of HPL. The nomination into HPL for the 10th through the rest of the month will be 11,300/d. Jill knew this would be happening, so they priced the deal at Gas Daily. I changed deal #278748 to reflect this change for Saturday forward. Since this is priced at Gas Daily, there will be no mark-to-market impact. We need to review the flows next week to see how much the volume changed and adjust if necessary. D

Subject: "Environmental findings, Koch South Texas Records Review".

Body:
Randy, this is a short summary of the environmental findings that were identified during the records review conducted at the Corpus Christi Koch facility offices on May 1st and 2nd of this year. All environmental records which were available in the file data room at the Koch office were reviewed. Assumptions were made that the environmental records were complete for all assets included in the sale. Primary emphasis was placed on those environmental issues which are normally associated with a sale or purchase of assets dealing with distribution and transmission of crude oil. In particular, pipeline and tank farms were the most critical assets which were reviewed. Based upon the data review, the Koch assets were in compliance with the following: Air permitting, permit by rule, standard expemtions, recordkeeping and fee payments were documented NSPS recordkeeping and inspections for VOC control on large crude oil tanks were documented Oil Pollution Act-OPA 90 plans had been prepared and were up to date SARA compliance and reporting had been completed SPCC plans had been prepared for each site which qualified under 40 CFR 112 Spill reporting history and notifications to the state agency were available for review There are ongoing groundwater and soil remediation activities at one site included in the asset for sale (permits for the remediation activity is in place) Hazardous waste notifications, annual reportings and fee payments were documented Based upon the above review, there were no issues which could be identified which would be condsidered a major environmental limitation or would be a considered a major environmental liability. This statement is again based upon the assumption that all environmental information was present in the data room for the assets in question. It should also be stated that this analysis of Koch's environmental compliance is based upon the fact that Koch has not held back or provided false or misleading information or knowledge during their presentation or informaiton contained in the facility files. Pending further development and interest of this potential purchase, a recommendation is made to conduct a phase I due diligence and site visit to each location to verify findings from the records review. Also, due to the past history of Koch's operating practices, it is recommended that contract conditions be implicitly stated that EOTT will not be held liable for discoveries of past deficiencies or releases of contamination which have occurred on any of the Koch assets purchased.