Subject: "CGAS Storage".

Body: I made some big changes to the CGAS storage deals 268094 (no changes on this ticket), 268090, and 268093. Over the 4 day weekend we are over injecting 195,600 dth. We will show this volume coming out in June. I also made about a 7,000 dth change to the volumes coming out in August. I am still showing most of the withdrawal of the ENA balance in August. Let me know if you have any questions.

Subject: "New Starters".

Body: At the last RAC Departmental meeting concern was expressed that the vacant positions within RAC were not being filled as quickly as hoped. I would therefore like to keep you all updated as to where we stand with new joiners. Recent new recruits include: Rudi Zipter (Director - MRM) who has transferred from Houston, Shane Miller (Senior Specialist - MRM) and Ravi Tumuluri (Associate - U/W) and I would like to welcome them all to RAC. Looking forward we have several new people coming on board in the next few months and I have outlined their provisional start dates below: Credit John Collenette (Snr Director) - 5 November Mike Mumford (Director) - 3 September Blair Van Zant (Director) - 1 October Tracy Ngo (Director) - September Simon Hockenhull (Snr Specialist) - 2 September Adam Bauer (Specialist) - 27 August (Sydney office initially) Shane Forster (Sr.Specialist) - 24 September Market Risk Michel Gantois (Director) - December/January Erik Beekman (Specialist) - 17 September Underwriting Christian Pearce (Associate) - 10 September I realize that, in addition to increasing our capacity, new starters also require a fair amount of indoctrination/training. Many members of our team as well as RAC-Houston and much of EEL have put a large amount of time and effort in the selection of these people, all with the consideration of adding people that will fit in and provide some level of unique experience/insight. We believe that these new starters will provide an excellent complement to our existing skill sets. Please do your best to welcome these new people, take advantage of their capabilities as well as give them the benefit of your knowledge and experience. Hopefully these additions will allow us to effect an intellectual capital transfer that benefits us all and makes this a better place to work in all respects. Please let me know if you have any questions or concerns. Ted

Subject: "4:30 with Steve".

Body: Hi Maureen: Could you ask Steve if he will be able to make the 4:30 (CST) with Laura Tyson? I think you 've got the call-in number. Tell him it's not big deal if he can't--I can handle--but if he can, it might be useful for him to be on

Subject: "Pemex Guaranty - Enron".

Body:
Lucy: Following please find our Corporate Lawyers comments to the changes you requested to the Guaranty we are working on: 1. Recitals. We do not see why it would be necessary to add that "The Guarantor will directly or indirectly benefit from the Transactions between the Beneficiary and PMI". Please explain. 2. Section 1. Considering that Pemex normally needs 5 business days to request funds in foreing currencies to the Central Bank, we need to change the payment date to be 5 Business Days after receipt of the Payment Demand instead of 3 days. 3. Section 6. Jurisdiction. We think that New York Jurisdiction is a good option and probably the most experienced in terms of derivatives trading, and therefore we prefer to keep the "exclusive" jurisdiction of any federal court sitting in the Borough of Manhattan. The rest of your comments are acceptable to us. Carlos Riveroll will be sending you PMI?s comments to the amendment to the MSA, so we can finalize this as soon as posible. Best regards,