Subject: "IMC Canada".

Body: Be careful using IMC Canada to prepare your draft from. Even though we have chosen NY law, we had two Canadian companies entering into the IMC Canada agreement so there is language in the agreement that is Canadian specific, and it might be missing some required US language. I have also attached a redlined draft reflecting the negotiated changes to the form since the form we first sent the form to the counterparty. I have attached our current form of ISDA Schedule as a reference. The Canadian changes will be color coded, so you can see them easily. Also, please note: there have been recent amendments to the CFTC Rules that have required certain changes to the swap reps, in particular there are no longer "eligible swap participants", the current terminology is "eligible contract participant". Please see Part 5(b) of the Schedule in particular.

Subject: "Weekly Report of 1/4/02".

Body: California: A01-10-011 PG&E Gas Accord. On Monday Jan. 7th Greg Klatt will enter an appearance on behalf of Transwestern at PG&E's Gas Accord Prehearing Conference. This will maintain our position to participate in the proceeding as needed. I99-07-003 SoCal Unbundling. SoCal filed its Advice Letter No. 3015 to implement the CPUC's Dec. 11th decision to unbundle the SoCalGas Transmission and Storage Systems however the filing only addresses Ordering Paragraph Nos. 9-15 of the decision. This section of the order directs SoCal to outline within their tariff the Comprehensive Settlement Agreement arrangements for allocating stranded costs. It does not address capacity or open season issues as dictated by the order. We will investigate the filing with SoCal as to the status of addressing these issues. A01-10-024 SoCalGas BCAP. In regard to filing comments on EGA's motion to strike the testimony and related materials on embedded cost-based allocation versus the long-run marginal cost methodology for the hearing on Monday, Jan. 7, 2002, it was decided not to file comments, but continue monitoring the proceeding. By participating Transwestern will continue to have the option of addressing any of the issues raised by other parties. CPUC Infrastructure Report. The Commission has issued its report and assessment of the state's gas infrastructure for the three major utilities in California. Their conclusion is that the natural gas transportation and storage systems are adequate to provide reliable amounts of competitively priced gas to residential, commercial, industrial and electric generation customers. Therefore they recommend that the Power Authority should not finance any new natural gas projects. Schedule: Week of Jan. 7 - Omaha

Subject: "Enron Fire Wardens Needed".

Body: During a recent review of Enron's High-rise Fire Evacuation Plan, the City of Houston Fire Department noted that several of our floors did not have the required number of trained Fire Wardens. I need your help. If you are a full-time Enron employee, please consider being a Fire Warden for your floor. Newly designated Fire Wardens must complete a two-hour certification training sponsored by the Fire Marshall's Office on Thursday, Nov. 15. Please contact Monica Rodriquez (x35393) or Harry Grubbs (x35417) to participate as an Enron Fire Warden. Thank you for your commitment to safety in our workplace. Stan Fire Wardens are needed on the following floors: Building Floor Number of Wardens Needed Three Allen Center 3 2 Three Allen Center 9 1 Three Allen Center 17 2 Three Allen Center 19 2 Three Allen Center 21 2 Three Allen Center 33 3 Enron Center North 2 4 Enron Center North 8 1 Enron Center North 9 2 Enron Center North 13 2 Enron Center North 14 1 Enron Center North 24 1 Enron Center North 32 4 Enron Center North 43 2 Enron Center North 45 2 Enron Center North 46 4 Enron Center North 50 1 Enron Center North 50-M 4 Enron Center North B-2 3

Subject: "The Pie".

Body:
FYI. Hit the wires almost immediately. He handled it with great aplomb and delivered a very good speech. He had the crowd (but for the pie throwin' types) squarely on his side. Best,