Subject: "Coral deal done in error on EOL".

Body: Joe, I got a call from the Coral people that a corrected confirm had already been sent to them PRIOR to us getting them to sign the consent to assignment of the trade. I'm sure whoever prepared it on the confirm desk didn't know I was working on this, but I told the Coral people I still needed the assignment back signed to keep our paperwork straight. Even tho I hate to have to do the additional work, with these EOL trades, there is no "oops" trade. Once we enter into the trade with 1 entity of a counterparty, we cannot just "move" the trade. We need the consent of the assignor and assignee so there is not question later on down the line that the trade was not legally moved. If eveyone on your team is not aware of this, can you mention it at your next group meeting...thanks!

Subject: "Revised Termination Letter".

Body: Sara, Is it possible to get a soft copy of the revised termination letter we discussed a couple of days ago? We would like to see the paragraph referencing how the counterparty arrived to the calculated amount and the request for supporting list of transactions. Thanks.

Subject: "ISDA Master Agreement between Enron Corp. and First Union Nationa l Bank".

Body: First Union Securities, Inc. Ms. Shackleton, Attached find a revised draft ISDA Schedule, both a marked copy and a clean copy, for your review. We just made a few changes to the draft ISDA Schedule to mirror the Schedule to the ISDA Master Agreement in place between First Union National Bank and Enron North America Corp. Please note that we have added a Credit Support Annex as a Credit Support Document. Could you please send a CSA Paragraph 13 in the form previously agreed in the Enron North America Corp. ISDA Master Agreement. <<Schedule 7-20-01 vs. Ctpty draft Schedule.doc>> <<Schedule 7-20-01.doc>> Also, as the parties may enter into EITF-0019 compliant trades, we would like to duplicate the current ISDA once we've agreed on the terms, then delete the Set-off provision and Credit Support Annex from the ISDA and execute this pared down ISDA to cover 0019 trades only. We believe it would be beneficial from a netting perspective to execute separate ISDAs to cover 0019 trades, on the one hand, and any other equity derivative trades which the parties may enter into, on the other hand. Could you advise if this is satisfactory. We look forward to hearing from you. Thanks and regards,

Subject: "Results of Meeting on Storage Allocation Changes".

Body:
The following summarizes the results of our meeting......If you want to discuss further, please call me. Break Field Area in 3 Regions / Allocate by point The decision was made to sub-divide the Field Area storage group into two regions; South of Plainview and North of Plainview, rather than 3 regions or allocating by point. If it is determined that additional divisions are necessary in the future, such changes can be made at that time. Changes to CAS are required. I have discussed the changes with Bob Johnson and Doug Aschwege and have learned that the changes are not difficult to make and could be made in a couple days. Gary Spraggins and I will determine which deferred delivery points are in these new field regions and then provide the information to Bob and Doug. Question: Should this change be implemented immediately or should it wait until the beginning of the withdrawal season? Change from 'net zero' approach / Provide minimum level of activity The decision was made to table this concern for now. The scheduled activity that drives the allocation process does not guarantee physical pipeline operations. In most cases, the flexibility provided by the Cunningham Field allows Gas Control to adjust operations to maintain the required minimum level of injections/withdrawals into Redfield and Lyons. Further analysis is required. Steve Thomas, Larry Swett and I will continue to monitor the system conditions/operations that effect physical storage to determine if and what additional changes maybe warranted. Send "Notice" when final scheduled number exceeds operational capacity The IT group will modify the scheduling cycle to add a procedure where the final net scheduled storage quantity is compared to the operational capacity set for storage. If the final scheduled quantity exceeds operational capacity, I will receive a notification via e-mail. The purpose here is to monitor occurrences to determine the magnitude of the problem. I will get with Gerry Medeles to finalize the matter.