Problem: BODY: After a careful review of the wholesale and retail gas trading and scheduling process it has been decided that the Gas Logistics teams should report directly into the Enron America's Commercial organization. This realignment will help to strengthen the commercial focus and communication between the trading desks and the schedulers and will play a critical role as Enron tries to maximize opportunities and maintain a competitive trading edge. The details are as follows: Wholesale Bob Superty will maintain his management of the Logistics support functions which include the Transport Rate team (Kim Olinger), Electronic Commerce team (Tammy Lee-Jaquet) and Regulatory Affairs teams (Suzanne Calcagno). In addition, Bob will now manage the Northeast Logistics team as part of the East desk. Bob will report directly to Scott Neal and will also help coordinate the Logistics function across all regions working closely with each of the regional Logistics Managers, Commercial desk heads and Enron Americas senior management team. Victor LaMadrid will manage the Southeast Logistics team and will report directly to Scott Neal. Victor's knowledge and overall east desk experience will be critical to help maximize east desk opportunities and promote new initiatives across all regions. Lisa Kinsey will manage the Central Logistics team and will report directly to Hunter Shively. Patti Sullivan will manage the West Logistics team and will report directly to Mike Grigsby. Darren Farmer will manage the Texas Logistics team and will report directly to Tom Martin George Smith will manage the Well Head Logistics team and will report directly to Fred Lagrasta. Retail Donna Greif will now report directly to Don Black. Each of the regional Logistics Managers (East - Marde Driscoll-Ernest, Central - Charlie Muzzy, West - Sabra Dinari) will continue to report directly to Donna. Donna will continue her ongoing efforts in the development and integration of the new retail trading systems, prior period adjustments and development of a strong and talented Logistics team. Congratulations to all involved and welcome to the commercial gas team - John Lavorato, President and CEO, Enron Americas.
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A: SUBJECT: Logistics Commercial Realignment

Problem: BODY: I want to move forward with scheduling the initial meeting of the Operational Risk Management task force. How does Tuesday, October 16th and the afternoon of Thursday, October 18th look for everyone? Please let me know your schedule for both of these dates. Most of the task force members have been identified, with the exception of those from GRMO and IT. Sally Beck will identify representatives from these two areas. I would also expect that other individuals may be consulted from time to time as additional expertise or resources or required. I intend to schedule a two-hour block of time for this meeting. The agenda will include, at a minimum, the following topics: Definition of Operational Risk for Enron - What's in and What's Out Preliminary Goals for Operational Risk Management (to be refined by the group) Develop Common Language Identify Framework for Monitoring Risk Role of this task force - Strategy Set common objectives for implementation this year and a look forward to 2002 Current Initiatives Communications Plan Open Discussion - Other Ideas from the group - Suggestions re other groups/individuals to include on the task force I am excited about leading this initiative for Enron. We have a unique opportunity to define operational risk measurement for Enron, develop reporting guidelines, and provide qualitative assessments of operational risk, all of which will be considered during the risk capital allocation process. But most importantly, we can identify ways to mitigate Enron's exposure to operational risk. Please call if you would like to discuss any of the above prior to the meeting. Thanks,
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A: SUBJECT: Operational Risk Management

Problem: BODY: Clem: Attached to the end of this string of emails is the Bear, Stearns & Co. ("Bear") form of guaranty. My only issue is with Section 1. Consents, Waivers and Renewals of the Bear guaranty which Bear insists upon . Although Bear will agree to the Enron form of guaranty, our Par. 4 Setoffs and Counterclaims problematic in light of Bear's waiver provision. I'd like to discuss with you. ENA has agreed to a Securities Lending arrangement with Bear and the ENE guaranty (capped at $25million and restricted to ENA's arrangements with Bear) is part of that "package". FYI, several Enron companies have accounts with Bear. When do you think we could discuss?
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A:
SUBJECT: Bear Stearns Guarantee. I'll call to follow up tomorrow a.m.