QUESTION: We have received the First Amendment to ISDA Master Agreement dated as of July 1, 2000 ("Amendment"). This Amendment (1) amends Counterparty's Threshold under the Credit Suport Annex, (2) exempts certain Transactions when determining "Exposure" under the ISDA Master Agreement, and (3) changes the Fixed Price with respect to the "Exempt Transactions" reflected in the Amendment. Copies will be distributed.
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ANS: Forcenergy Inc.

QUESTION: I got the memo from Naomi that you sent. First, who is Doug Imrie? Does he have a strong background in trading operations? Will he be able to coordinate effective reviews from a controls perspective, and will he be able to be the front-runner on how MG runs its business so that we will get a jump start on how best to assimilate the business? I think that this effort should be much broader than deal testing. It should encompass assessing people, processes, controls, systems support, etc. To do this quickly and effectively will require persons who are knowledgeable about daily trading operations. I don't know Naomi's background, but I wonder if she will be the right person to lead one of these efforts since she does not work in operations on a daily basis. Patrick Conner left me a message today to be certain that we are plugged in with an appropriate team from ENA to review the Chicago and New York offices. From the sound of Naomi's memo, it looks as if Andy Cornfield is assume to have the US responsibility. Again, I don't know Andy. Should we circle the wagons and develop a plan for doorstep reviews that includes some others in the process, particularly those that have been involved in some doorstep reviews to date and those that have daily operational experience? I have also mentioned Shona as a good resource as well.
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ANS: Merlin Doorstep Reviews

QUESTION: October 30, 2001 Ken, With every article I read concerning Enron, I think of you and the obstacles you surmounted in the mid-80s. If you need help in the Public Affairs arena, my timing is perfect. Peyton and I, within the last month, moved into our new home in Santa Fe. I am between commitments to allow time to get settled in the new place. I will be happy to come to Houston if I can assist you in any way. Hang tough! Every good Wish, Nancy
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ANS:
New Location