Subject: "SAB101/Contract Mgmt. Best Practices".

Body: Jeff, Contract management has become a big issue in most Fortune 1000 companies because of the risk to market capitalization that obligations in corporate contracts pose. I think that Enron executives would be very interested in the articles hot linked below. I would be glad to spend time with your organization to investigate the impact of enabling contract management best practices at Enron. diCarta provides the first web-based contract and revenue management solution that enables businesses to negotiate, track, manage, and renew contracts via the Internet. We have had tremendous success in helping companies like Kraft, BEA Systems, Intuit, Agile, Ernst&Young, Deloitte Consulting and many others gain visibility into their contracting and revenue management processes while mitigating financial and legal risks. Below is the diCarta solution overview then links to recent articles including our partnerships with Arthur Andersen and Deloitte. diCarta's Focus: diCarta Contracts automates your entire contract lifecycle including negotiations, execution, revenue management, maintenance, and renewals on both the sell-side and buy-side. Your complete contract information will now be in one central location, on-line, for down-stream revenue, obligation, and renewals management. This is enabled by a direct link of the unstructured data in the contract to structured data, which allows you to take automatic actions based on the actual contract Ts&Cs. To maximize communication and efficiency, diCarta Contracts was specifically designed to be a collaborative application using role-based security. E-signatures are supported as well. Negotiation: You can negotiate contract Ts&Cs on-line with an internal approval workflow to manage risk. Not only will you shorten your quote-to-cash cycle, but reduce your legal and financial risk by having on-line visibility into what Ts&Cs you are approving before the contract is executed. Revenue Management: On the sell-side, you will have a framework for revenue recognition per the FASB and SEC guidelines that is driven directly from the contract Ts&Cs. Now you can manage your revenue recognition risk, significantly reduce labor, and avoid possible non-compliance. This is extremely important as companies struggle with adherence to SAB 101. On the buy-side, you can proactively track expenditures.

Subject: "RedRock".

Body: A couple of additional thoughts on this morning's conversation: 1. if we really think the next 6 or 8 months will sort out the takeaway and receipt point capacity issues, why not bet the whole farm and try to hold onto the whole 150 mm/d until next winter or fall and see if the perceived value goes up? We could tell Calpine "no" on their bid and hold them off for several months "negotiating" if that's what we thought would lead to the best value. I don't personally think this would be a prudent approach, but its where our logic leads in the extreme, so we'd better be prepared to explain why getting the bird in the hand from Calpine is smart. 2. We'll research the question of whether we can reject any recourse bids that come in over the next 6-8 months if we decide to hold onto the 60 mm/d for awhile. I've thought about it a bit more and I'm pretty sure you're not going to like the answer. First, FERC says we've got to have a recourse rate in place for all capacity, new or old. One reason is that there needs to be a max rate that applies to long term capacity releases. We have the option on new projects to go with the existing max tariff rate or a new incrementally designed rate. We are going with the existing tariff rate on RedRock. Fine, but that makes the existing rate the recourse rate for all purposes. FERC's logic will be that TW could sell all of the RedRock capacity at recourse rates (currently $.38) and never suffer a revenue shortfall even if future rate cases reduce TW's overall rates, because the costs of all TW's facilities--including the new project--will be considered

Subject: "Camping".

Body: Brian, Thanks for the camping trip this weekend. It did help me clear my mind and sort some things out. This is a tough time right now, but having good friends like you will help me get through this. Thanks again.

Subject: "Enron Center Garage".

Body:
Your packages for the Enron Center Garage are ready for pick-up at EB305, please make sure that you bring your current parking card with you at the time of pick-up, we will exchange your access card for a transponder. ( We will fax a memo to the Garage, so that you will be able to get out of the garage at the end of the day). Thank you,