Subject: "Wholesale Power and Gas Trading operation with new entity".

Body: 8214 Colonial Oaks Lane Spring, Texas 77379 December 20, 2001 Mr. Harry Arora Regarding: energy trading positions I am writing to you to express my desire to be apart of the Wholesale Power and Gas Trading operation that will potentially be created with an entity that has a high credit rating. I have been working for Rogers Herndon in Enron Wholesale Services on the Options Desk. In this role I have modeled the power options that are embedded in the various deals done through Enron Energy Services with large industrial and commercial clients. In addition, I profitably managed the positions and priced deals for structurers and originators. I realize that now is a difficult time but am confident that I would make an excellent addition to your team for several key reasons: ? Proven experience in the financial markets and direct trading experience in various markets, including electricity and natural gas, mortgage backed securities, U.S. Treasury securities, foreign exchange, EuroCurrency and EuroDollar deposits ? Team player and high work ethic, successfully balancing trading opportunities with managing risk ? Solid portfolio management and risk management experience in electricity and mortgage banking ? Five years direct experience in trading, risk management, structured products and marketing of electricity for the United States ? Actively involved in the physical markets and strong understanding of the western grid ? Experience trading OTC forwards and options at major hubs in other NERC regions such as Cinergy, Entergy, ERCOT, NEPOOL and PJM ? Worked for both unregulated power marketers and regulated utility ? Extensive experience in derivatives and structured products ? Ability to effectively work with marketers pricing and structuring deals for industrial and commercial end users of energy ? Strength in mentoring junior traders Thank you,

Subject: "Public Service Company of New Mexico".

Body: At the request of Darren Vanek in Credit, we have done some preliminary due diligence regarding the ability of The Public Service Company of New Mexico to enter into financial transactions. Based on our conversations with them and review of their Board Resolution, it appears: 1. They are an investor owned utility, not a governmental entity 2. Their Board Resolution ONLY approves electricity futures, options or swaps, and gas or oil futures, options or swaps. 3. THEY CANNOT ENTER INTO FINANCIAL TRANSACTIONS OVER 18 MONTHS. It is imperative that anyone trading with this counterparty be made aware of this restriction Please call me if you have any questions.

Subject: "Potential NOV letter from TNRCC to EOTT for Ozona Crude Station".

Body: I received from the TNRCC an NOV letter for the above facility for failure to submit an emissions inventory for 2000. This notification from the agency originally came to Rick Loveless by way of Wayne Brunette. I called the TNRCC and spoke to Kevin Cauble concerning the NOV and he pulled the emissions inventory submitted in 1999 for the facility. Because VOC's are the issue, I asked him what the emissions were for VOC's on the 1999 inventory. Kevin stated that the inventory showed VOC emissions of 19.50 tons/yr actuals and 33.56 tons/yr potentials. We discussed why EOTT would submit an inventory as it is not a major source and not required to. The only thing we could come up with is that EOTT may have anticipated an increase in throughput at this site and therefore, wanted to ensure that this facility was shown as a title V source. According to the phone records from the TNRCC for this facility, Craig Willoughby of Entrix had requested that the faciltiy be kept on the list of facilities required to do inventories. I have a call into EOTT to determine whether increased throughput is proposed for this facility in the near future. In speaking with Kevin, he suggested that if a determination is made that if there is to be an increased throughput that wont exceed the 100 ton/yr limit on VOC's, or that throughput conditions remain approximately consistent with previous years, EOTT should provide written notification to the agency that this facility does not meet the applicability requirements of 101.10 (emissions inventory requirements) and request that this facility be removed from the TNRCC mailings. Should EOTT confirm the status of operating throughput to be below the 100 ton/yr VOC emissions limit, I will make make written notification to the TNRCC requesting removal from the list.

Subject: "TE South Pass at capacity".

Body:
January 29, 2002 The TEXAS EASTERN TRANSMISSION (TE) South Pass system has been scheduled to capacity for gas day Wednesday, January 30, 2002. As a result, no nomination increases from the physical meters on the lateral will be allowed. The South Pass meters are listed below: METER METER NUMBER METER NAME OPERATOR