Subject: "EOL-San Diego Gas & Electric".

Body: We are going to open San Diego Gas & Electric to transact the following financial products, but are going to limit the length of the trades to 3 months or less. The approved products per the Master Agreement are any "swap, cap, floor, collar or option...based on the prices of crude oil, petroleum products, natural gas, or electric power...". I have previously not distributed the executed Master Agreement because of unresolved issues with the counterparty, but will send copies today to the usual distribution. We have an executed Master Energy Price Swap Agreement in place between ECT and the counterparty dated as of February 25, 1997. All financial trades for this counterparty should go under the master.

Subject: "SoCal Ideas for Settlement Value".

Body: Per our conference call today, here are some ideas to get TW Settlement Value. 1. SoCal to commit to TW to let us schedule transport at the SoCal/Topock (South Needles) delivery point. 2. SoCal to turnback 20,000 to 25,000/d of receipt capacity from the WTX Pool, at no cost to TW (SoCal continues to pay for it). 3. TW has been scheduling PG&E's payback to SoCal at SoCal/Topock to help PG&E and SoCal. SoCal to schedule this as transport from PG&E/Topock (as a RP) to SoCal/Topock (DP) and pay TW transport fee. 4. SoCal to agree (in writing) to dedicate to TW the incremental 50,000/d at Needles becoming available Jan, 2002 until Red Rock Expansion in-service. 5. SoCal to amend their OBA to dollar-valued (from volumetric) and cash-out their existing OBA with TW (at TW's index value). 6. SoCal to sell storage to TW. 7. SoCal to purchase incremental Thoreau to West of Thoreau capacity from TW. 8. Extension of SoCal's mainline &/or San Juan lateral contracts. Or early notice of termination or early notice of ROFR trigger (so that we would have the opportunity to remarket it).

Subject: "Engage Energy US".

Body: Attached for your approval is the form of Enron Corp. Guaranty in favor of Engage Energy US, L.P., now known as Coastal Merchant Energy, L.P., which guarantees the obligations of ENA under an ISDA Master Agreement. We will need the standard executed copy. This guaranty will supersede and replace, in part, the prior guaranty with respect to ENA and Counterparty. The guaranty will be fully replaced when counterparty receives the new Enron Corp. Guaranty with respect to the obligations of Enron Canada and Engage Canada (still covered under the existing guaranty, and such replacement is still under negotiation). Upon approval and execution, please call me at x33399 to pick up the documents. Thank you for your assistance in this matter.

Subject: "ETS & Industry Mentions".

Body:
Wyoming.Fort Union Gas Gathering. 09/24/2001 Natural Gas Week EOTT'S RECAPITALIZATION WILL INCLUDE CONVERSION OF UNITS, NEW FINANCING 09/24/2001 Petroleum Finance Week Stock Rating Reiterations Closing Update 09/24/2001 Dow Jones News Service APGA Urges EIA to Gather Gas Data to Dampen Price Volatility NGI's Daily Gas Price Index published : September 25, 2001 COMPANIES & FINANCE INTERNATIONAL - Appetite for North American energy assets remains strong By SHEILA MCNULTY and KEN WARN. 09/25/2001 Financial Times CALIFORNIA PREMIUM GASOLINE DROPS TO 91 OCTANE RATING 09/24/2001 Octane Week Williams Invests Big in Deepwater. 09/24/2001 Natural Gas Week