Subject: "Koch imbalance cashout".

Body: Leslie- We will cashout the imbalance with the two Koch entities in the following way: We owe Koch 11,885 mmbtu at $3.90/mmbtu, which equals $46,351.50. Koch owes us 13,639 mmbtu at $2.21/mmbtu and 11,720 mmbtu at $2.38/mmbtu, which equals $58,035.79. The net of these imbalances is $11,684.29 due to Enron. Let me know if you have any questions. I negotiated this with Scott Garrison at Koch. Thanks,

Subject: "Arbitration/Process Agent Language in Form".

Body: Sara and I met with Richard Sanders today to resolve some questions that we had concerning the arbitration and process agent language in our forms and here is what we concluded needed to be done: 1. If arbitration is chosen, there is no need to insert Waiver of Jury Trial language 2. Pending discussions that he will be having with Mark Haedicke and Jim Derrick, no chnages need to be made to our arbitration language. 3. Our Process Agent language will be revised such that under all circumstances it will say the following: Party A appoints as its Process Agent , ____________, having an office in

Subject: "(MS-81) SWITCH OF GUARANTEE".

Body: Notice No. MS-81 December 19, 2001 COMMODITY EXCHANGE, INC. SWITCH OF GUARANTEE Please be advised that effective with the open of business, December 18, 2001, John Santoro (TORO-6244) will no longer be guaranteed by Man International, Inc. However, Mr. Santoro will remain a member guaranteed by Spear, Leeds, & Kellogg. In connection therewith, notification of any claims against the aforementioned individual arising out of transactions executed on the Exchange up to the close of business on December 17, 2001, must be submitted to the Corporate Secretary's Office within (10) days of this notice.

Subject: "CNG Appalachian production".

Body:
The CES/CEM CNG Appalachian production is still flowing into the CES/CEM gathering and transmission contracts. Unless someone objects I would like to get this moved over to Enron's pool. We don't need to have the gathering and transmission contracts moved over. Comments/questions?