Problem: BODY: Today, we were both OOMC'd and OOME'd for 135mw's for the entire day. The OOME instruction was a category 4, which means operate AT this level. We sold an additional 85 mw's from the plant, bringing the total to 220. Ercot called to tell us to drop the output of the plant to 135. I hesitated because of the confusion we have previously experienced with this product. I contacted Mark Patterson and discussed the category 4 requirements and I agreed to take the plant down. Colleen at Ercot said that she was going to "report me" for not immediately complying. Am I in trouble? JMF
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A: SUBJECT: oomc/oome

Problem: BODY: The above transaction was presented to the Board on 1-29-2001. There was considerable discussion which I have summarized below. Returns: were the returns sufficient to syndicate the risk. I answered positively, which is what the capital price addresses. The dash return is a blended debt and equity return.(?) Was the $19 million excess proceeds enough to allow the company to operate. I answered yes since 85% of reserves are producing and little capital will be needed to develop pdnp and pud reserves. Is management capable of operating or will they be in chapter 11 again soon. I answered that the bankruptcy was a result of overpaying for Wyoming deal and low commodity prices last two years which resulted in a bb decrease below outstanding. We will have to watch this issue carefully. Are banks reluctant to support KCS and could this cause a liquidity problem? Answered that all creditors were made whole and likely that someone will come into credit but it was a risk, although for the time being they had enough cash to operate. This feedback is just for fyi but it does indicate that board is active and not a rubber stamp. Rick
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A: SUBJECT: Board Review of KCS

Problem: BODY: Rob: I received the documents and Susan Flynn will get them executed along with the Enron Guaranty and the other certificates and get them back to you next week. My question for you is when you consider the agreement to be effective for trading purposes? I'm assuming you want to wait for the Enron Guaranty and that any trades done before the Guaranty is sent to you would not be confirmed under the Master. Please let me know your thoughts on this. I have asked Enron's counsel to process the Guaranty ASAP. Thanks. Carol
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A:
SUBJECT: ISDA Master