Subject: "Daily Tie Outs Across Risk Systems".

Body: Shona, As per my memo to you on August 13th, I am scheduling a kick-off meeting with individuals to discuss a daily tie-out process across all global risk applications/reports, i.e. DPR, Infinity, RisktRAC (VAR and Benchmark) and CAS. This would provide proof (or a trail to what is missing) that required information from all risk books, commodities, and business units are appropriately reported on a daily basis. As stated earlier, without a robust global books application, the daily process currently in place provides little assurance that "everything" rolls up correctly. It also does not include Infinity. My suggestion for attendance at this meeting, in addition to you, Beth and I, is as follows: Stacey White Todd Hall Sheila Glover/Clara Carrington

Subject: "Statoil Reconciliation".

Body: At the request of Anita Herrera, I am enclosing a copy of a list that shows the discrepancies that our records show from the list we were sent of trades to be assigned to J. Aron. Please resolve the trades issues directly with Bob Bowen. His # is 713/853-7859.

Subject: "Statistical Analysis".

Body: Michelle/Diane, Assuming you received the updated file from Kathy, here's what I would like to see. 1. Standard deviation by job group based on age, gender, ethnicity and performance rating 2. Utilization of Forecast, Probability and/or Trend functions for age gender, ethnicity and performance rating to identify the likelihood of women and minorities promoted within the organization..

Subject: "ENA Legal Expenditures".

Body:
I sent the e-mail below to our lawyers in ENA Legal. In order to provide better oversight and control of ENA legal expenditures on large transactions, please continue to follow the procedures set forth below for transactions where outside legal fees and expenses are expected to exceed $25,000.00. The purpose of these procedures is to (i) improve communication with counsel (inside and outside) on issues, fees and services and (ii) send price signals on legal costs (with respect to specific transactions) on a timely basis to the business units. Every effort should be made to continue to provide high quality legal work that has become standard at ENA. 1. A written estimate of proposed fees and expenses and a written description of the services shall be provided by our outside counsel. The responsible business unit and the General Counsel shall review and approve such written estimate before our outside counsel is directed to provide substantial professional services. 2. Our outside counsel shall be instructed to promptly submit a revised written estimate if such outside counsel determines that legal fees and expenses for such transaction will exceed the previous written estimate by $25,000.00. Such revised written estimate shall be reviewed and approved by the responsible business unit and the General Counsel or his/her designee before our outside counsel is directed to provide substantial additional professional services. 3. In order to accurately track such expenses so that the expenses can be properly allocated to the various business units, a work order number should be obtained for each transaction. Thank you for your cooperation. If you have any questions or any other suggestions for controlling expenses, please call me at extension 36544.