Problem: BODY: Good Tuesday Morning - Comments From The Local Guys! The Federal Reserve has just cut interest rates by 50 basis points. This was pretty much expected. In the statement, the Fed. members indicated that the "terrorist attacks have significantly heightened uncertainty in an economy that was already weak. Business and household spending as a consequence are being further damped. Nonetheless, the long-term prospects for productivity growth and the economy remain favorable and should become evident once the unusual forces restraining demand abate". The 30 -year bond yield is 5.32%.
======
A: SUBJECT: The Morning Market Call - Tuesday October 2nd, 2001.

Problem: BODY: Attached is a clean and redline version of the documents. I have the Powder River Basin Exhibit and can fax if you want to review. Please note that I added a section that allows Enron to relocate units if they are underutilized at their current location. This was resultant of the 5 year term for the units contracted for during the initial 2 year period.
======
A: SUBJECT: Revised Compression Agreement

Problem: BODY: Tim, my understanding is that partnership fee (the $11.0M) has been amortized for the last several years and expensed to the Industrial groups (McConville and Ondarza). As you are aware, I sued them for breach. The settlement involved the elimination of all existing transactions between Ft. James and Enron including the Wauna and Halsey power contracts. It is my understanding that the benefit of the elimination of those shorts resides in the Portland shop. The elimination of the shorts would not have occurred without the lawsuit on the alliance and the settlement I originated. It seemed logical to charge the Portland office with the remaining un-amortized fee of $1.8M as a cost of eliminating the shorts for no cost and no future contingent liability. Lets discuss. Regards
======
A:
SUBJECT: Fort James Amortization