Subject: "Aspect,Helmerick & Payne, Wilmar, etc amendment revision".

Body: Debra, Based on further discussions with the customer, Jill Zivley has negotiated a revised price for the amendment that you recently prepared for the Aspect, Helmerick & Payne, et al. contract. The revised pricing should be 80% of FOM at IF Houston Ship Channel less .075 and 20% of FOM at GD less .065. Please let me know if you have any questions regarding these changes to the amendment. We need to send this to the customer by tomorrow morning. Thanks,

Subject: "Brotherhood of Banker Trust is Alive".

Body: Jim Reilly said he had spoken to you recently after he saw me holding a sign under an I10 overpass. Would love to get together with you to catch up and figure out what's going on at Enron and elsewhere. I have attached my resume'. We've all come along way since the BT days. I'll call you in the near future to see when we can get together. <<Resume081401.doc>>

Subject: "Natural Gas Contract".

Body: Exelon Energy, our gas marketer, has terminated their gas contract with Holtermann Farms effective the end of the December 2001 billing period. Southern California Gas Company provides transportation to our non-core account. Holtermann Farms has two irrigation wells that have the heaviest natural gas consumption during the summer months. If your company would be interested in being our gas marketer, please contact me at tholtermann@hotmail.com. Thank You

Subject: "Bryson Conversation".

Body:
Notes from Bryson conversation with Ken Lay: Urged us to "stay at the table". Says teams in Washington have all the demand curves from the utilities (from which to calculate offering prices). QF meeting starts at 7:00 pm tonight. says average cost of QFs today is 15?/kwh (amounts to 30% of supply). believes that cost can be brought down significantly if gas is purchased forward (perhaps by state entity). Says all utility generation (another 30%), mostly hydro and nuclear is cost based at 4?/kwh. If suppliers come in at 5.5? (or even 6? ), there is room under the 7? new commodity rate component to recover securitized costs (amounts to about 40% of SCE supply). Says good progress was made today. Believes they may have a framework this evening. Believes 5.5? is causing problem; maybe room to squeeze it up (perhaps as high as 6.0?). Thinks governor will slightly increase rates (or pay more at government facilities) if the parties can get 97% of the way to a solution. Thinks it's nearly a "done deal" that DWR (state entity) will buy power. Says securitization may be harder to get. Bryson's questions to Ken (and Ken's to us): Are we willing to forbear payment of amounts owed to us and continue to sell power to the utilities over the next several weeks. Ken realizes that Bryson may be overstating the progress made, and made no commitments to Bryson. Let's discuss at 10:30 call tomorrow.